Weekly Review – Red Chilies
14-Mar-2026 08:10 PM
No Significant Downside Expected for Red Chilies: Production is Low
New Delhi: During the current week, the red chili market witnessed mixed trading trends. On one hand, prices for the 'Teja' variety of red chilies remained subdued in the Guntur market; on the other, prices in Khammam and Warangal were quoted firmly. Market experts suggest that, due to a decline in overall yield, there is little likelihood of any significant downward correction in current red chili prices. Prices are expected to firm up in the coming days, driven by anticipated buying interest from China. Currently, buying activity from Bangladesh remains limited.
Andhra Pradesh
In Guntur—a major hub for red chilies—weekly arrivals have been hovering between 500,000 and 525,000 bags. Due to sluggish export trade, the price of the 'Teja' variety softened from ₹19,300 at the start of the week to close at ₹19,100 by the week's end. In contrast, Hyderabad is witnessing daily arrivals of 5,000 to 6,000 bags, with the 'Teja' variety currently being quoted at ₹19,400 per quintal.
Telangana
Owing to a decline in yield, the arrival of red chilies in Telangana's markets is lower compared to the previous year. During the current week, arrivals at the Khammam market totaled approximately 150,000 to 160,000 bags; consequently, the price for the 'Teja' variety rose from ₹19,225 to ₹19,300 by the end of the week. At the Warangal market, weekly arrivals stood at approximately 200,000 bags, and the price for the 'Teja' variety firmed up from ₹19,500 to ₹19,800. For the current season, red chili production in Telangana is estimated at 4.5 to 5 million bags, whereas production was recorded at 6 to 6.5 million bags last year.
Delhi
Offtake (buying volume) for red chilies in the Delhi market remained low. However, due to weak supplies from production centers and a bullish outlook for the future, stockists are unwilling to sell at reduced prices. Consequently, the price for the 'Teja' variety was quoted firmly within the range of ₹23,000 to ₹23,500.
Market Trends: Bearish vs. Bullish
Sources believe that there is little likelihood of a significant decline in red chili prices; this is because, in addition to a reduction in overall yield, the carry-over stock is also low—and the remaining stock is of inferior quality. Sources further indicate that in the coming days, following a decline in market arrivals, prices are expected to gradually begin trending upward. It is projected that, in the near future, the price for the 'Teja' variety in the markets could reach the range of ₹22,000 to ₹22,500.
Exports
During the first nine months of the current financial year (2025-26), the volume of red chili exports increased by 23 percent; however, due to lower realization prices, the revenue generated saw an increase of only 6 percent. According to data released by the Spices Board, red chili exports between April and December 2025 amounted to 536,760 tonnes, generating revenue of ₹7,548.83 crore. In comparison, during the April–December 2024 period, exports stood at 436,034 tonnes, yielding revenue of ₹7,111.97 crore. For the full financial year 2024-25 (April–March), the total volume of red chili exports was 715,506 tonnes, generating revenue of ₹11,404.90 crore.