No Significant Surge Expected in Red Chili Prices; Increased Sowing in Andhra Pradesh and Telangana

New Delhi. Red chili prices showed some strength this week, partly due to a limited supply of high-quality produce reaching the markets (mandis). In the Guntur market, the price of the 'Teja' variety of red chili has risen to ₹220–222 per kg, up from ₹215–218 per kg a week ago. Similarly, in the Khammam market, the price for the 'Teja' variety has strengthened, moving from ₹220 to ₹225 per kg. Industry sources suggest that a sharp rise in prices is unlikely, as new red chili stocks have begun arriving in the markets of Madhya Pradesh. Additionally, sporadic arrivals of new produce have also been reported in Hyderabad and at the Byadgi market in Karnataka. In the Bedia market of Madhya Pradesh, arrivals of new stock have reached 15,000–20,000 bags; the 'Mahi Phulkat' variety is currently priced at ₹205–215 per kg, whereas new stock had initially opened at ₹250–255 per kg. Sources indicate that market arrivals are expected to increase further after the Dussehra festival, making any significant price surge in the coming days unlikely.

Increased Sowing

Following an expansion in sowing area in Madhya Pradesh, reports indicate that red chili cultivation in Andhra Pradesh and Telangana has also increased, covering 30–35% more land. However, due to a rainfall deficit this year, the yield may not increase as expected. Sources warn that if there is no rainfall in the coming days, the crop will inevitably suffer damage, and total production may not align with the increased sowing area. It is worth noting that last year, red chili production was estimated at 12.5 million (1.25 crore) bags in Andhra Pradesh and 4.5–5 million (45–50 lakh) bags in Telangana.

Karnataka

According to available information, the Byadgi market in Karnataka has started receiving new stock, with arrivals reaching 8,000 to 10,000 bags. Prices for the 'KDL' quality are quoted between ₹640 and ₹670, while the '2043' quality is priced between ₹260 and ₹285. Meanwhile, the price for the older 'Dabbi Deluxe' variety is ranging from ₹700 to ₹735. Sources indicate that although red chili was planted over a larger area in Karnataka this year, adverse weather conditions suggest that total production will likely remain on par with last year’s levels.

Exports

Red chili exports have been impacted by weak demand from China, coupled with lower demand from other nations due to high price levels. Data released by the Spices Board shows that red chili exports for the first two months of the 2026-27 fiscal year (April–May 2026) stood at 119,438 tonnes—a 35% decline compared to the same period last year. Total red chili exports for the 2025-26 fiscal year (April–March) amounted to 683,681 tonnes, whereas exports in 2024-25 totaled 715,506 tonnes.