Red Chili Sowing in Madhya Pradesh Exceeds Last Year's Levels

26-Jun-2026 06:55 PM

Higher Prices Likely to Drive Increased Sowing in Other Regions Too

New Delhi. Red chili prices are currently higher than last year due to reduced domestic production during the ongoing season. Consequently, reports indicate increased sowing activity in major producing regions. Information suggests that approximately 75–80% of the sowing work in Madhya Pradesh is already complete, with reports indicating that the sown area is 1.5 to 2 times larger than last year. Driven by high prices, forecasts predict increased sowing in Andhra Pradesh, Telangana, and Karnataka as well. Notably, during the current season, red chili sowing was carried out on 30–35% less land in key producing states like Telangana, Karnataka, and Andhra Pradesh, leading to a decline in overall yield. Reports estimate production in Andhra Pradesh—a major producing state—at 1.25 crore bags this year, compared to 1.5 crore bags last year. Similarly, production in Telangana is estimated at 45–50 lakh bags, down from 60–65 lakh bags the previous year. Production in Karnataka and Madhya Pradesh was also projected to be 30–35% lower than the previous year. It is worth noting that the red chili crop in Madhya Pradesh arrives in October–November, whereas the arrival of new stock from Andhra Pradesh, Telangana, and Karnataka begins in January–February.

Low Stocks

Due to the drop in production, red chili stocks at producing centers remained lower this season compared to the previous year. Reports estimate stocks at the Guntur market in Andhra Pradesh at 40–42 lakh bags, whereas stocks stood at 50–52 lakh bags last year. Additionally, stock levels in Khammam stood at 14–15 lakh bags, compared to 20–21 lakh bags last year. Reports indicate that stock in Warangal is currently 15–16 lakh bags, whereas it was 18–19 lakh bags last year.

Arrivals

Currently, red chili arrivals at the markets of major producing centers remain quite low; however, prices are not rising due to subdued export activity. According to available information, current arrivals stand at 25,000–30,000 bags in the Guntur market, 10,000–12,000 bags in Khammam, and 5,000–6,000 bags in Warangal. Prices for 'Teja' quality chili are currently quoted at ₹190–212 per kg in Guntur and ₹190–215 per kg in Khammam—rates that are ₹50–60 per kg higher than during the same period last year.

No Downturn Expected

Industry sources indicate that a decline in current red chili prices is unlikely. Prices may rise in the coming days as demand picks up, given the low stock levels in markets and the fact that the Madhya Pradesh crop is still 4–5 months away from harvest. Based on the current situation, it is projected that prices could reach ₹240–250 per kg before the new arrivals from Madhya Pradesh begin.

Impact on Exports

Due to lower-than-expected demand from China, red chili exports declined by 4% in volume and 9% in value during the 2025–26 period. According to data released by the Spices Board, red chili exports totaled 683,681 tonnes during 2025–26 (April–March), generating export earnings of ₹10,395.59 crore. Meanwhile, during the year 2024-25, red chili exports stood at 715,506 tonnes, and export earnings amounted to ₹11,404.9 crore.