Red Chilli Prices Drop on Oversupply and Weak Demand
05-Aug-2025 03:34 PM
Guntur. In the year 2023, the domestic market price of red chilli jumped to a historic record level, due to which farmers got encouraged and increased the sowing area of this important spice crop in the year 2024.
It is known that during the year 2023-24, at one time the price of Byadagi red chilli jumped to Rs 450 per kg and the price of Teja and S4 variety reached Rs 270 per kg.
In the 2024-25 season, due to increase in sowing area and favorable weather conditions, there was a strong increase in the production of red chilli and when the supply of its new goods started strongly, the wholesale market price started falling rapidly.
In view of the falling prices, the producers stored their red chilli stock in cold storage so that good income can be obtained by selling it when the price rises in the coming months.
The export performance of red chilli during the 2024-25 season was not encouraging. Some export consignments were rejected due to the presence of high residues of pesticides in the goods.
In fact, the focus of the producers was on increasing the yield rate and production of red chilli and hence they did not put much emphasis on improving the quality.
Due to weak domestic and export demand and huge stock in cold storage, the pressure on the prices of red chilli increased significantly.
The farmers of major producing states - Andhra Pradesh, Telangana, Karnataka and Madhya Pradesh are quite discouraged by the falling market price and their confidence in the cultivation of red chilli has started to waver.
As a result, a huge decline in the sowing area of red chilli is being predicted in these states and at the national level during the current year (2025).
According to the industry-trade sector, the sowing area of this important spice crop is expected to fall sharply by 45 percent in Karnataka, 40-40 percent in Telangana and Madhya Pradesh and 35 percent in Andhra Pradesh during the current year as compared to last year.
At present, there is a huge stock of about 2.20 crore bags of red chilli in the country which is 67 percent more than the same period last year. As a result, during the next marketing season, when the arrival of new crop starts, the pressure on prices may remain.