Normal arrival and better buying expected to keep red chilli prices strong

25-Jun-2025 05:27 PM

Guntur. Although red chilli exports declined in both quantity and value during the last financial year, the outlook for the current year appears more promising.

Steady supply of this important spice is being observed in major producing markets, while local traders, Disawari buyers, and exporters are showing increased interest in purchasing.

The average daily arrival of red chilli in the key Guntur market of Andhra Pradesh has dropped to 40-45 thousand bags, down from the earlier 50-55 thousand bags.

Similarly, fewer arrivals are being reported in the Warangal market of Telangana. If buyer support continues, the firm tone in prices is expected to persist.

However, uneven monsoon rainfall is being reported in both top-producing states, with rain deficiency in several regions, which could somewhat affect the development of the new red chilli crop.

India remains the world’s largest producer, consumer, and exporter of red chilli. Stocks in major importing countries are reportedly low, which could boost global demand in the coming months.

If prices continue to strengthen, Indian farmers may be encouraged to increase the sowing area under red chilli.

The domestic trade in red chilli is currently stable, with good activity in producing markets. It is anticipated that Disawari traders will try to build stocks before the monsoon intensifies.

July and August often bring heavy rainfall and even flooding in many parts of the country, which can disrupt transportation. Therefore, stocking red chilli before the full onset of monsoon could be cost-effective.