The arrival of new red chilli has started in the Guntur market in Andhra Pradesh, a key hub for the crop, and in the Warangal market of Telangana. Despite a reduction in the area sown for red chillies by 20-25% this year compared to last year, the weather has remained favorable for the crop, raising hopes for good quality produce.

Market Trends:

• In Guntur, the arrival of new red chillies is around 2,500 to 3,000 bags, with prices for the Teja variety ranging between Rs. 130 and Rs. 165 per kg, depending on quality. In contrast, older stocks of Teja are priced at Rs. 162-163 per kg.
• In Warangal, around 25 to 30 bags of new red chillies have arrived, with Teja prices quoted between Rs. 120 and Rs. 145 per kg.

Production Estimates:

• The production of red chillies in Andhra Pradesh is expected to be around 1.5 crore bags, down from 2 crore bags last year.
• In Telangana, production is projected to be between 55 to 60 lakh bags, a decline from last year’s 75 to 80 lakh bags.

Price Comparison:

• Prices of red chillies are currently lower than last year. At the end of November 2023, the price of Teja in Guntur was Rs. 232 per kg, whereas this year, it is quoted between Rs. 162 and Rs. 165 per kg.
• Despite the anticipated reduction in production, prices are not expected to rise soon due to high stock levels from previous seasons.

Exports:

• Red chilli exports have remained steady compared to last year. According to Spices Board data, between April and August 2024, 222,412 tonnes were exported, compared to 226,352 tonnes during the same period in 2023. Total red chilli exports for the year 2023-24 reached 601,084 tonnes.

Outlook:

• With the arrival of new dry goods expected to increase by the end of December, the market could see more supply, but with reduced demand from major buyers like China and Bangladesh, there may be limited price increases in the near term.