Red chili prices firm up due to low stocks and robust demand

27-Jun-2026 12:28 PM

Mumbai. Prices for most varieties of red chili are trending upwards, driven by low carryover stocks and strong domestic and export demand. Farmers are highly encouraged by this trend and are likely to make every effort to expand the cultivation area for this key spice crop.

Provided weather conditions remain normal, red chili production in the 2026-27 season could be excellent, mirroring the performance of the 2024-25 season; notably, production was weak during the 2025-26 season.

According to the Chili Exporters Association based in Guntur, Andhra Pradesh, carryover stocks have dropped to approximately 14.6 million bags (40 kg each), significantly lower than the 22.9 million bags available during the same period last year.

With market arrivals normalizing, stocks held in cold storage and warehouses are steadily declining. Compared to last year, prices for export-grade varieties like Teja and Armoor have fallen by about 20% due to currently subdued demand.

However, strong demand from spice manufacturers is expected to emerge starting in August, which should drive prices up. The area under red chili cultivation is projected to increase by approximately 30% this year compared to last year.

While the southern states of Andhra Pradesh, Telangana, and Karnataka are the largest producers, Madhya Pradesh is also a significant producing state. Sales of red chili seeds have risen by 10–12%. Due to a weak monsoon, the sowing process is likely to continue until the end of August, and production is expected to increase.