Weekly Review – Red Chilies
09-May-2026 08:14 PM
Rising Red Chili Prices: No Likelihood of a Downturn
New Delhi: A rise in red chili prices has been recorded during the current week. Notably, due to summer vacations, the major markets (mandis) of Guntur and Khammam have remained closed for a month. Consequently, the spot market has witnessed strong buying support. Sources believe that, owing to a decline in yield, there are no prospects of a price slump for red chilies during the current season; furthermore, the reduction in production has resulted in lower stock levels in the markets compared to last year.
Production
It is noteworthy that during the previous season, due to farmers failing to receive a fair price for their produce, the area under red chili cultivation was reduced by 30–35 percent—not only in the major producing state of Andhra Pradesh but also in Telangana and Karnataka. As a result, red chili production in Andhra Pradesh during the current season is estimated at 1.25 crore bags, whereas last year's production was estimated at 1.5 crore bags. Similarly, reports from Telangana indicate that red chili production is expected to be between 45–50 lakh bags, down from 60–65 lakh bags last year.
Low Stock Levels
According to information received from producing centers, current red chili stock levels at these hubs have declined due to the reduction in overall yield. Reports from Guntur—a major market in Andhra Pradesh—suggest that red chili stocks currently stand at 40–42 lakh bags, compared to 52–54 lakh bags last year. Additionally, stocks in Khammam are estimated at 14–15 lakh bags, whereas last year's figure stood at 20–21 lakh bags. Reports from Warangal also indicate a decline in stock levels to 15–16 lakh bags, down from 18–19 lakh bags last year.
Higher Prices
Due to the weaker yield, red chili prices this year are currently trading at higher levels compared to last year. According to available information, in early May of last year, the price of 'Teja' red chilies at the Guntur market was trading at ₹132–133 per kilogram; currently, it is being quoted at ₹205–207. The price for 'Teja' red chilies is currently being quoted at ₹214–215, whereas during the same period last year, the price was hovering between ₹135 and ₹136. In other markets and consumption centers, red chili prices are currently trading ₹70–75 higher compared to last year.
No Significant Downturn Expected
Market experts believe that there is no immediate likelihood of a decline in red chili prices in the near future. It is projected that prices will rise further in the coming days, as holidays in the markets of production centers are expected to lead to an increase in demand at consumption centers. Consequently, trade estimates suggest that red chili prices could witness a further surge of ₹20–25. Currently, in the Delhi market, the price of 'Teja' red chilies is being quoted between ₹225 and ₹250, depending on the quality.
Exports
According to data released by the Spices Board, during the first ten months of the 2025–26 fiscal year, the volume of red chili exports increased by 18 percent; however, due to lower realization in export prices, the revenue generated recorded an increase of only 3 percent. As per the information received, during the April–January 2026 period, red chili exports totaled 572,757 tonnes, yielding a revenue of ₹8,150.34 crore. In contrast, during the April–January 2025 period, exports stood at 484,219 tonnes, generating a revenue of ₹7,889.78 crore.