New Delhi. Red chili prices remained firm during the current week. Arrivals in the markets are declining due to a decrease in production at producing centers, while stockists' demand remains strong due to expectations of a good increase in prices. Bangladeshi purchases are also ongoing. Currently, Chinese purchases are not in the market.

In Andhra Pradesh, a major red chili producer, production is expected to decline due to lower sowing compared to last year. Consequently, production in Andhra Pradesh is estimated to be 125 million bags this year, compared to last year's production estimate of 15 million bags. Currently, the average daily arrival of new goods in Guntur, the main market in Andhra Pradesh, is 70,000-80,000 bags, and the price of Teja quality is quoting at ₹195 per kg, compared to ₹186 at the beginning of the current week. Teja was quoted at ₹182 at the beginning of February.

During the current season, the production of red pepper in Telangana will also be lower than last year. It is estimated that production in Telangana this year will be around 4.5-5 million bags, compared to 6.0-6.5 million bags last year. Currently, the daily arrival of red pepper in Khammam market is 30,000-32,000 bags, and Teja is quoting at ₹195-196, compared to ₹190 at the beginning of the current week. The price was quoting at ₹184 at the beginning of February. In Warangal, the price of red pepper Teja rose from ₹190 to ₹192 during the current week.

Experts say that there is no significant decline in red pepper prices. Because of the low production and low outstanding stocks, there is also a possibility of a significant increase in red pepper prices in the future. It is expected that Chinese purchases will also increase in the market in the coming days. Traders are predicting a rise in prices by ₹20-25 per kg after Chinese purchases.

In the first nine months of the current financial year 2025-26, red pepper exports increased by 23 percent in volume, but due to low prices, revenues increased by 6 percent. According to the data released by the Spices Board, the export of red chilli in April-December 2025 was 536760 tonnes and the income received from export was Rs 7548.83 crore. Whereas in April-December 2024, the export was 436034 tonnes and the income received was Rs 7111.97 crore. During the year 2024-25 (April-March), the total export of red chilli was 715506 tonnes and the income received from export was Rs 11404.90 crore.