Excess supply causes market failure for chilli processed in cold storage

With an influx of new chilli into the market, the ones stored in the cold storage facilities are in low demand, and the prices are moving downward, U Hla Han, engaged in chilli depot, told The Global New Light of Myanmar (GNLM).
Chilli processed in cold storage experience colour degradation one month after they are placed in the market, decreasing consumer demand.
These days, fresh red chilli from the Salin area flow into the Yangon’s wholesale market at K13,500 per viss, while those red chilli from cold storage are sold at K15,000-K15,500 per viss. Demand for new red chilli is increasing.
Similarly, bell peppers from the Sinphyukyun area processed in cold storage fetched K19,000-K19,500 per viss on 19 December. The new bell pepper price is also the same as those at present.
Those traders who stored the chilli at the cold storage are receiving low profits as the newly supplied chilli is of high quality and low price.
The prices of Moehtaung chilli from the Pyawbwe area dropped to K10,500 in December from K15,000 on 9 August.
New long chilli and red chilli from Hinthada and Kyaukme are expected to enter the market in early 2024. Red chilli and bell peppers from delta regions will possibly flow into the market in March 2024.
Last year, those traders who stored the chilli in cold storage after buying them at low prices during harvest time reaped a handsome profit.
Nonetheless, some of them resulted in low profits and even losses.
If new chilli produced in early 2024 is priced low, cold storage operators might consider them to store for high-profit potentials, pointed out a warehouse operator. — TWA/KK

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