The pressure on red chilli prices has started to mount due to new crop arrivals and weak demand, with the harvesting season for red chillies beginning in Andhra Pradesh and Telangana, two key producing states.

The sporadic plucking of the new crop has begun, but the full-scale arrival of the crop is expected only around February-March.

Presently, the market is experiencing limited purchases as buyers are focused on procuring the new crop in small quantities for immediate use, anticipating further price softening in the coming months.

In Guntur, the main market for red chillies, approximately 75,000 to 77,000 bags of red chilli are arriving daily, with around a third (25-26 thousand bags) being from the new crop.

Prices have remained stable at this point. Additionally, with cold weather persisting in North India, there is hope that demand and consumption will rise, particularly after Makar Sankranti on 14 January, when festivals and auspicious events (like Lagnasara) begin, potentially boosting the market.

Currently, prices for Teja red chilli are around Rs. 14,500-16,000 per quintal in Guntur and Rs. 15,000-16,500 per quintal in Warangal.

There is optimism for price recovery due to expected increases in demand during the upcoming Ramzan period. This is likely to lead to heightened export activity, especially to Muslim-majority countries such as Bangladesh, Malaysia, and possibly China.

Despite some reports of crop damage, overall production is expected to be normal, and if both domestic and export demand align with the new arrivals, the market could stabilize, avoiding significant fluctuations in prices.