No Likelihood of a Decline in Red Chili Prices

31-Mar-2026 06:34 PM

New Delhi: Currently, red chili prices are being quoted on a strong note. Due to a decline in yield during the current season, there is no likelihood of a downward trend in prices. Notably, in addition to a 30–35 percent reduction in the area under red chili cultivation in key producing centers, weather conditions have also remained adverse. Consequently, reports indicate a decline in red chili production not only in Andhra Pradesh but also in Telangana and Karnataka.

Market experts observe that, in addition to Bangladesh, buying interest from China has also begun to pick up gradually. It is worth noting that for some time past, China's procurement volume had been quite low. Furthermore, demand from local stockists remains robust. As a result, current prices for the 'Teja' variety of red chili in the markets of producing centers are trading at a premium of ₹60–70 per kilogram compared to the same period last year. Currently, the price for 'Teja' red chili in the Guntur market is being quoted at ₹192–193, while in the Khammam market, the price stands at ₹194. In Warangal, the price for 'Teja' is being quoted between ₹180 and ₹189. It is pertinent to mention that at the beginning of the current month, the price for 'Teja' red chili was quoted at ₹186 per kilogram in Guntur and ₹190 in Khammam, whereas in Warangal, the price was trading at ₹190.

No Downturn Expected

Traders are of the opinion that there are no signs of a decline in current red chili prices. This is because, in addition to the reduction in yield, the carry-over stock is also low. Moreover, market arrivals are expected to begin declining during the month of April. Experts suggest that red chili prices are likely to remain firm throughout the year 2026. It is possible that in the coming days, red chili prices could even cross the ₹225 mark.