Possibility of softening of red chilli prices is weak due to decrease in arrivals

07-May-2025 06:13 PM

Guntur. Arrivals of red chilli have started decreasing in key markets of major producing states, while traders and exporters of the Disawari variety are showing good interest in purchasing at current lower prices.

As a result, the price of red chilli is expected to remain stable or strengthen in the near future. Supply pressure has started easing in the markets of Andhra Pradesh and Telangana. In Guntur, Andhra Pradesh, the average daily arrival has dropped to around one lakh sacks, down from the earlier level of 1.25–1.30 lakh sacks.

A similar decline in supply is also being observed in Warangal, Telangana. This has led to a slight increase in the prices of certain red chilli varieties. If buying support continues at current price levels, prices may strengthen further in the coming days.

For the past few weeks, the wholesale market price of red chilli has been fluctuating within a narrow range. With the peak supply season of the new crop now over, producers are reducing sales.

However, a daily arrival of one lakh sacks in Guntur is still a substantial volume. While small farmers sold their produce at lower prices, larger producers still hold significant stock.

Export demand for red chilli is showing signs of improvement, with some countries becoming active in purchases again.

Indian exporters are focusing on markets like China, Bangladesh, Malaysia, and Gulf countries, and demand is also expected to rise in European countries.

Domestically, the Lagnasara season is expected to drive up red chilli consumption. Overall, unless there is an unexpected rise in supply, and if buying support continues, there is little chance of red chilli prices softening, and the market may see further strengthening.