Red Chili Prices to Fall as Arrivals Increase

22-Jan-2026 07:33 PM

New Delhi: Red chili prices have witnessed a significant increase of Rs. 50-55 per kg during the current week. However, sources say that the current surge is due to speculative trading. Prices are expected to fall in the coming days as the arrival of new crops increases. It is true, however, that this year's red chili production will be lower than last year, as the sowing area in the producing centers has decreased by 30-35 percent this year. Due to speculative trading and lower-than-expected arrivals of new crops, the price of Teja variety red chili reached Rs. 205 per kg in the Guntur market and Rs. 211 per kg in Khammam. However, due to weak buying support at these high prices, red chili prices in the Guntur market softened, and the price is now being quoted at Rs. 195.

Sources say that prices will fall in the coming days as the pressure of new crop arrivals increases in the markets, but not significantly. This is because the stock of good quality chilies is low, and the new crop is also smaller, with the quality of the new produce also being inferior, making a significant price drop unlikely. Sources believe that during the peak arrival period, the price of Teja variety red chili in the Guntur market is expected to settle around Rs. 175-180 per kg.

Arrivals

The arrival of new crops in the markets of the producing centers has started increasing gradually. The pressure of arrivals will build up in February. In Andhra Pradesh, the Guntur market is receiving 35,000-40,000 bags of new crops, Khammam 12,000-15,000 bags, and Warangal 4,000-5,000 bags.

Lower Production

Due to weak sowing and unfavorable weather conditions, red chili production in Andhra Pradesh during the current season is estimated at 12.5 million bags, while last year's production was estimated at around 15 million bags. In Telangana, production is expected to be 45-50 lakh bags, compared to 60-65 lakh bags last year. Reports also indicate lower yields in Karnataka. Production was also lower in Madhya Pradesh.

Exports

In the first seven months of the current financial year 2025-26, red chili exports increased by 31 percent in terms of quantity, while revenue increased by 9 percent due to lower prices. According to data released by the Spices Board, 432,436 tonnes of red chilies were exported during April-October 2025, generating revenue of ₹5886 crore. In comparison, 330,695 tonnes of red chilies were exported during April-October 2024, generating revenue of ₹5398.63 crore.