Despite better supply, prices of red chilli remain strong
11-Mar-2025 07:24 PM
Red chilli prices in Andhra Pradesh have experienced fluctuations due to varying supply and demand dynamics.
Earlier this season, prices had fallen significantly, dropping from highs of ₹28,000 per quintal last year to below ₹7,000 per quintal.
This decline prompted the Andhra Pradesh government to seek assistance from the central government under the Market Intervention Scheme (MIS) to support farmers.
In response, the central government agreed to procure approximately 25% of the state's red chilli production through the MIS, collaborating with agencies like Markfed and Nafed.
This intervention sent positive signals to the market, leading to a recovery in prices. As of March 10, 2025, Guntur market prices for red chillies ranged between ₹12,300 and ₹14,500 per quintal, depending on the variety and quality.
The current season has seen strong arrivals in markets like Guntur, with daily supplies averaging around one lakh sacks.
Favorable weather conditions in major producing states, such as Andhra Pradesh and Telangana, have facilitated smooth harvesting and market arrivals.
Increased buying interest from exporters, local dealers, and spice manufacturers has also contributed to stabilizing prices. Export demand, particularly from countries like Bangladesh, Malaysia, Gulf nations, and China, has strengthened, further supporting the market.
While peak arrivals are expected to continue through March, prices are anticipated to remain stable or experience slight declines, depending on supply levels and buyer activity.
Traders and buyers are advised to stay updated on market trends and crop reports to make informed decisions.