Pressure of new red chilli arrivals in major producing markets

15-Jan-2025 06:00 PM

The red chilli market is experiencing pressure due to increasing supply from major producing regions, notably Guntur in Andhra Pradesh, Warangal, Khammam in Telangana, and Byadagi in Karnataka.

Daily arrivals in Guntur have surged to 80-85 thousand bags, with approximately 30 thousand bags being new goods. This influx of new chillies coincides with weaker domestic and export demand, contributing to softer prices.

Despite the current softness, there is optimism for price recovery in the near future. The demand for red chillies is expected to pick up, especially with the onset of cold weather in North India and the beginning of Lagnasara and festival seasons, which typically drive up consumption.

Additionally, there is anticipation of increased demand from key export markets, including China and Bangladesh.

Currently, a significant amount of old stock remains in the markets, but the steady arrival of new produce may lead to price fluctuations.

Producers are hopeful that once domestic consumption and export demand gain momentum, prices will strengthen.