Weekly Review – Red Chilies
21-Mar-2026 08:20 PM
Red Chili Prices Rise on Strong Stockist Demand; Production Declines
New Delhi: Red chili prices witnessed an upward trend during the current week. Market arrivals have been declining due to a reduction in yields at major production centers. Meanwhile, demand from stockists remains robust, driven by expectations of a significant price rally in the near future. Additionally, procurement activity from Bangladesh is currently underway. However, there is currently no buying interest from China in the market.
Andhra Pradesh
In Andhra Pradesh—a major red chili-producing state—production is projected to decline this year, primarily because the area under cultivation was lower compared to the previous year. Consequently, red chili production in Andhra Pradesh is estimated at 1.25 crore bags this year, whereas last year's production was estimated at 1.50 crore bags. In Guntur—the state's primary market—the average daily arrival of new stock currently stands at 70,000 to 80,000 bags. The price for the 'Teja' variety is now being quoted at ₹192 per kg, up from ₹191 per kg at the beginning of the current week. At the start of February, the price for the 'Teja' variety was being quoted at ₹182 per kg.
Telangana
During the current season, red chili production in Telangana is also expected to be lower compared to the previous year. Estimates suggest that production in Telangana will hover around 45 to 50 lakh bags this year, whereas last year's production was recorded at 60 to 65 lakh bags. Currently, daily arrivals at the Khammam market stand at 30,000 to 32,000 bags, with the price for the 'Teja' variety being quoted at ₹191 to ₹192 per kg. At the beginning of February, the price was being quoted at ₹184 per kg. In Warangal as well, the price for the 'Teja' variety of red chili rose during the current week, climbing from ₹195 to ₹198 per kg. The weekly arrival volume in Warangal stood at approximately 1.50 lakh bags. Although trading activity in the Delhi market remained subdued, prices held firm due to bullish reports received from key production centers.
Market Trends
Market experts opine that there is little likelihood of a significant decline in red chili prices. This is because, in addition to lower crop yields, carryover stocks are also limited. Consequently, there is a strong possibility of a substantial upward trend in red chili prices in the near future. Furthermore, forecasts suggest that buying activity from China is expected to increase in the coming days. Market estimates project that following the resumption of Chinese buying, prices could witness a surge of ₹20–25 per kilogram.
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 totaled 536,760 tonnes, generating revenue of ₹7,548.83 crore. In comparison, exports during the April–December 2024 period stood at 436,023 tonnes, yielding revenue of ₹7,111.97 crore. For the full financial year 2024–25 (April–March), total red chili exports amounted to 715,506 tonnes, generating revenue of ₹11,404.90 crore.