New Delhi. Arrivals of new red chilies have begun in the major producing states of Andhra Pradesh, Karnataka, and Telangana. However, arrivals of dried chilies will pick up in January. Currently, Guntur market is receiving 4,000-5,000 bags of new chilies, while Warangal is receiving 200-300 bags and Khammam 50-100 bags. Byadgi market in Karnataka is receiving 20,000-25,000 bags.

In the major producing state of Andhra Pradesh, red chili sowing this year was done on 259,119 acres, compared to 363,539 acres last year. In Telangana, sowing was done on 138,460 acres, compared to 222,370 acres last year. Earlier, red chili sowing in Madhya Pradesh was also 50-60 percent lower than last year, and in Karnataka, it decreased by 35-40 percent. Besides the reduced sowing, the weather this year was also unfavorable for the crop. Due to these reasons, production is estimated to be lower than last year. 70-75 percent of the crop from Madhya Pradesh has already arrived in the markets. This year, red chili production in Madhya Pradesh is estimated at 1.8-2 million bags, compared to 3-3.2 million bags last year.

Due to the affected sowing and unfavorable weather, red chili production in the country will decrease for the second consecutive year. According to available information, red chili production in the major producing state of Andhra Pradesh is expected to be 12.5-13 million bags this year, while production was estimated at 15 million bags in 2024 and 20 million bags in 2023. In Telangana, red chili production will also be affected due to a 38 percent reduction in the sown area. According to estimates, red chili production in Telangana during 2023 was 75/80 lakh bags, which decreased to 60/65 lakh bags in 2024.  However, production during the current season is estimated to be around 50 lakh bags.

Experts say that currently, there are reports of 25/28 lakh bags of red chilies in the Guntur market, while the stock in Andhra Pradesh is estimated to be 48/50 lakh bags. Reports indicate a stock of 30/32 lakh bags in Telangana and 40/42 lakh bags in Karnataka.

Sources believe that there is no possibility of a decline in red chili prices in the near future, but prices should fall in January with the arrival of new crops. However, as the pressure from arrivals decreases, prices will start rising again. Sources say that during 2026, the price of Teja variety red chilies could touch the ₹200 level. If exports to China increase, the price could surpass the 2022 level. In October 2022, the price of Teja variety red chilies in the Guntur market reached ₹220/225 per kg. Currently, the price of Teja variety red chilies in the Guntur market is being quoted at ₹147/148 per kg.

In the first half of the current financial year 2025-26, red chili exports increased by 40 percent in terms of quantity, while revenue increased by 14 percent. According to data released by the Spices Board, red chili exports during April-September 2025 amounted to 380,980 tonnes, generating revenue of ₹5,233 crore. This compares to exports of 272,090 tonnes and revenue of ₹4,576.29 crore during the same period in 2024.  Given the current situation, it is anticipated that red chili exports during the current season (2025-26) will be higher than the previous year. It is worth noting that total red chili exports during 2024-25 reached 715,506 tonnes, generating revenue of ₹11,404.90 crore.