Chilli Market Rises on Strong Domestic Demand
25-Mar-2026 10:49 AM
Chilli Market Rises on Strong Domestic Demand
★ The chilli market is witnessing a bullish trend due to lower production and strong domestic demand.
★ Chilli production has declined by about 20–35% this year, which is supporting prices.
★ China, which was a major buyer last year, is largely absent from the market this season. By March last year, India had exported around 9,000 containers of chilli to China, whereas this year the figure has dropped to about 2,000 containers.
★ Domestic demand, particularly from spice companies and traders in North India, remains strong, providing solid support to prices. Currently, Teja chilli is trading around ₹190–195/kg, while 334 and 341 varieties are priced around ₹220–225/kg, nearly double compared to last year.
★ The Byadgi variety is witnessing even stronger gains. Byadgi Dabbhi is trading around ₹62,000 per quintal, and KDL around ₹55,000 per quintal, which is roughly double compared to last year.
★ The arrival of the new crop may be completed by April, but due to low stocks and potential export demand, prices may rise further after June.
★ At present, the primary support for the market is strong domestic demand, while demand from China, Europe, and the United States remains weak.