The price of red chilli in India is expected to remain stable in the near future, with limited fluctuations. Although there will be strong domestic demand in the winter and during Ramzan in Muslim-majority countries, the market may face sluggish trading conditions for now.

An average of 70-75 thousand sacks of red chilli is arriving daily in the Guntur market of Andhra Pradesh, but the Warangal market in Telangana has seen a decrease in arrivals.

The stability in prices has led producers and stockists to hold off on selling large quantities of their stock, as they are not being encouraged to unload due to current price softness.

Recent heavy rains in Tamil Nadu, coastal Andhra Pradesh, and Rayalaseema, caused by the sea cyclonic storm Fengal and the north-east monsoon, have raised concerns about potential crop damage. There have also been reports of black thrips insect infestations affecting the crop.

The new red chilli crop will start coming in from January to March 2025 in major producing states like Andhra Pradesh and Telangana. This period will coincide with stronger demand, particularly during Ramzan.

However, until then, limited trading and some price fluctuations are expected. Importers from countries like the Gulf nations, Bangladesh, China, and Malaysia are currently buying limited quantities from India while waiting for the new crop. Domestic demand is likely to rise from mid-December to mid-February.