No Upswing Expected for Red Chillies

New Delhi. Currently, both local and export trade in red chillies have slowed down as the arrival of the new harvest has begun in the agricultural markets (mandis) of Madhya Pradesh. Similarly, new stock has started arriving in the Byadgi market of Karnataka and the Hyderabad market of Andhra Pradesh. Due to an increase in the area sown by farmers this season, the total yield is expected to be higher. Although there were concerns that the crop in Andhra Pradesh and Telangana might be adversely affected by water shortages, recent rainfall has reportedly benefited the harvest. In the Guntur market (Andhra Pradesh) and various markets across Telangana, the arrival of new red chillies is set to commence in January-February.

It is noteworthy that, thanks to an expanded sowing area and favorable weather conditions, red chilli production in Madhya Pradesh is projected to reach 5.2–5.5 million (52–55 lakh) bags this year, compared to 2.6–2.8 million (26–28 lakh) bags last year. Currently, the major market of Bedia in Madhya Pradesh is receiving 22,000–25,000 bags of new red chillies, with the 'Mahi Phulkat' variety quoted at ₹215–225. In Karnataka’s Byadgi market, arrivals have reached 20,000–22,000 bags, with the 'KDL' quality priced at ₹6,000–6,800. In Hyderabad, arrivals are around 1,700–1,800 bags, with the new 'Teja' variety quoted at ₹200–220. In the Guntur market, 'Teja' (cold-stored) is priced at ₹222–225, while in Khammam, the 'Teja' variety is trading at ₹231, and in Warangal, it is priced at ₹218–220 per kilogram.

Sowing Estimates

In Madhya Pradesh, the area sown with red chili has increased by 1.5 to 2 times, while reports from Andhra Pradesh and Telangana also indicate that the sown area has grown by 50%. Last year, red chili production stood at 12.5 million (1.25 crore) bags in Andhra Pradesh and 4.5 to 5 million (45–50 lakh) bags in Telangana. Sources suggest that if weather conditions remain favorable for the crop in the coming days, production in Andhra Pradesh and Telangana is likely to increase.

Stocks

Due to a decline in red chili production last year, current stock levels at major producing centers are lower compared to the previous year. According to available information, the current stock at the Guntur market is estimated at 2.5 to 2.6 million (25–26 lakh) bags, whereas it was 3.5 to 3.6 million (35–36 lakh) bags during the same period last year. Similarly, in the Khammam and Warangal markets of Telangana, stocks are reported to be around 2 to 2.2 million (20–22 lakh) bags, compared to 2.8 to 3 million (28–30 lakh) bags last year.

Reduced Exports

Red chili exports have declined compared to last year, driven by weak demand from China and high price levels, which have also impacted exports to other countries. According to data released by the Spices Board, red chili exports for the current season (April–May 2026) totaled 119,438 tonnes, generating an export revenue of ₹2,603 ​​crore. In contrast, during the same period (April–May 2025) last year, exports reached 185,011 tonnes, with a revenue of ₹2,592 crore. Notably, for the full year 2025–26 (April–March), total red chili exports stood at 683,681 tonnes, yielding an export revenue of ₹10,395.59 crore. In the year 2024-25, 715,506 tonnes were exported, and the revenue generated from these exports amounted to ₹11,404.90 crore.