New Delhi: Red chili sowing is facing delays this year in major producing states like Andhra Pradesh and Telangana due to adverse weather conditions. Although it was anticipated that a larger area would be cultivated this year—driven by the fair prices growers received during the current season—insufficient rainfall has hampered sowing operations in Andhra Pradesh and Telangana. Due to water scarcity, sowing began in August this year, whereas it typically commences in July. In contrast, sowing has already been completed in Madhya Pradesh, with reports indicating that the cultivated area is double that of last year. Reports also suggest an increase in sowing acreage in Karnataka compared to the previous year. Sources indicate that sowing is likely to increase in Andhra Pradesh and Telangana as well, driven by higher prices compared to last year. The one-month delay in sowing has consequently delayed the arrival of the new crop.

It is noteworthy that the country's red chili production declined by 30–35% during the current season, resulting in lower stock levels in producing states compared to the previous year.

According to information from production centers, the current stock of red chili at Guntur—the major trading hub—is estimated at 35–38 lakh bags, whereas during the same period last year, the stock stood at 45–48 lakh bags. Reports indicate that stock levels at the Khammam market stand at 14–15 lakh bags, compared to 18–20 lakh bags last year, while stocks in Warangal are estimated at 13–14 lakh bags, down from 17–18 lakh bags the previous year.

Although demand from China has been low during the current season, buying interest from countries like Bangladesh and Malaysia has remained steady. It is worth noting that while China is the largest importer of red chili, exports to the country have declined this year. Despite current prices being higher than last year's levels, there is no immediate likelihood of a price drop. Sources suggest that a decline in prices is possible once the Madhya Pradesh crop arrives in October–November.

With the bulk of the total produce already having reached the markets, current arrivals of farmers' stock have significantly decreased. Reports indicate that arrivals at the Guntur market have dropped to 14,000–15,000 bags, while Warangal and Khammam are seeing arrivals of 4,000–5,000 bags. High prices have limited both export and local trade. Currently, the price for 'Teja' quality chili is quoted at ₹218–220 per kg in Guntur, while it is trading at ₹226–227 in Khammam; in Warangal, the price for 'Teja' was quoted at ₹214–215. Rising prices have impacted demand, causing quotes to dip by ₹5–8 per kg this week. However, sources state that a major price drop is unlikely in the near term, as stocks are low and the new crop from Madhya Pradesh is not due until October.

In Madhya Pradesh, red chili has been sown over an area twice the size of last year's. Weather conditions following the sowing have also remained favorable for the crop. Consequently, red chili production in Madhya Pradesh is forecast to double this year compared to the previous year. Last year, production stood at 28–30 lakh bags, whereas this year it is expected to rise to 55–60 lakh bags, provided the crop remains free from disease in the coming days.

Red chili exports have been impacted this year due to high prices. Demand from China remained low, and purchases by Bangladesh also remained limited. According to data released by the Spices Board, the volume of red chili exports dropped by 35 percent during the first two months (April–May) of 2026–27; however, earnings remained on par with the previous year due to higher export prices. Reports indicate that during April–May 2026, red chili exports totaled 119,438 tonnes, generating revenue of ₹2,603 ​​crore. In contrast, during April–May 2025, exports stood at 185,011 tonnes, yielding revenue of ₹2,592 crore. For the full year 2025–26, total red chili exports amounted to 683,681 tonnes, with earnings of ₹10,395.59 crore.