Weekly Review: Red Chilies
27-Mar-2026 07:18 PM
Reduced Red Chili Production: Prices Firm Up
New Delhi: During the current week, red chili prices witnessed an upward trend. Notably, reports indicate that red chili production in the country during the ongoing season is estimated to be 30–35 percent lower compared to last year. Consequently, the arrival of new stock at wholesale markets (mandis) in key production centers has failed to rise as expected. Meanwhile, stockists continue to engage in steady buying, driven by expectations of a significant price rally in the near future. Although demand from China remains subdued, demand from Bangladesh has held steady. As a result, prices have maintained their upward momentum. According to available information, in the Guntur market—a major trading hub in the key producing state of Andhra Pradesh—the price of the 'Teja' variety of red chili has risen to ₹192–193 per kilogram, up from ₹190 at the beginning of the week. During the same period last year, the price of 'Teja' red chilies in the Guntur market stood at ₹128–130 per kilogram.
In Telangana's Khammam market, the price of 'Teja' red chilies rose from ₹190 to ₹193 per kilogram, whereas during the corresponding period last year, the price was quoted at ₹134–135. Furthermore, in Warangal, prices for 'Teja' red chilies firmed up from ₹194 to ₹196 per kilogram. Prices also remained firm in the Delhi market.
No Downturn Expected
Market experts opine that, given the decline in yield combined with low residual stock levels, there is currently no likelihood of a price downturn for red chilies in the immediate future. Forecasts suggest that demand from China is likely to improve in the coming days. Additionally, the inflow of stock into wholesale markets is expected to begin tapering off in April. Market sources believe that, in light of the current scenario, prices for the 'Teja' variety of red chilies could potentially touch the ₹220–225 per kilogram mark in the days ahead.
Exports
According to data released by the Spices Board, during the first ten months of the current financial year (2025-26), the volume of red chili exports increased by 18 percent, while revenue registered a growth of 3 percent. As per the information received, red chili exports during the April–January 2026 period amounted to 572,757 tonnes, generating revenue of ₹8,150.34 crore. In comparison, exports during the April–January 2025 period stood at 484,219 tonnes, yielding revenue of ₹7,879.78 crore. It is noteworthy that during the year 2024-25 (March–April), the total export of red chilies amounted to 715,506 tonnes.