Limited ups and downs in red chilli prices according to demand and supply

16-Jun-2025 03:44 PM

Guntur. Sowing for the new crop of red chilli has begun in major producing states, and with the end of summer vacation, trading activity has resumed in Guntur Mandi—India’s key benchmark market for red chilli.

Daily arrivals at Guntur Mandi have reached a normal average level, with 50,000 to 55,000 bags arriving each day, and traders and exporters actively making purchases. Business activities resumed on June 12 after a break of nearly a month.

According to data from the Spices Board, red chilli exports during the financial year 2024–25 declined slightly compared to 2023–24. Red chilli remains the top spice exported from India in terms of both quantity and value.

Previous production levels were normal, and a good carryover stock from the last season has kept prices largely under pressure, despite occasional upward movements.

Farmers continue to show strong interest in sowing red chilli in key states such as Andhra Pradesh, Telangana, Karnataka, and Madhya Pradesh, supported by favorable rainfall. In the past, pest and disease issues were a concern, but recent improvements in crop protection have eased these fears.

With stable arrivals in the Guntur and Warangal markets, prices have remained mostly steady, showing only limited fluctuations.

According to trade analysts, the domestic consumption peak season has passed, so future price movements will largely depend on export performance.

Producers and stockists are offloading their inventories based on market signals, which has prevented any sharp rise or fall in prices.

While exports to the United States, Europe, and the Middle East continue in small volumes, demand from key markets like Bangladesh, Malaysia, and China has yet to pick up as expected. Exporters and producers are closely monitoring developments in these regions.