Red Chilli Sowing May Drop Due to Low Prices and High Stocks
04-Aug-2025 12:03 PM
Hyderabad. Due to the presence of huge outstanding stock and soft market prices, it is estimated that the domestic production area of red chilli will fall by 35-40 percent during the current Kharif season.
In many areas of major producing states, farmers are giving priority to the cultivation of maize, pulses and cotton etc. instead of red chilli.
The President of the Red Chilli Exporters Association based in Guntur (Andhra Pradesh) says that this year red chilli will be sown in less area as compared to last year.
At present, its area is lagging behind by 20 percent but a clear picture will emerge by mid-August. Since there is a good stock of water in dams and reservoirs, the sowing process can continue till September.
According to the President, there was a great domestic production of red chilli in the last season but its domestic and export demand was not encouraging.
The prices of red chilli are under pressure due to the possibility of its outstanding stock increasing to a high level of about 2.20 crore bags.
In Andhra Pradesh alone, its stock is being reported to be around one crore (100 lakh) bags, while in Karnataka, about 70 lakh bags and in Telangana, about 50-55 lakh bags of stock is estimated to be present. Due to this, the market is suppressed.
This time, a significant decline is being seen in the sale of red chilli seeds. According to a leading seed selling company, due to weak market price, the sale of seeds has decreased by about 35 percent. In Karnataka, the sale of Byadagi and Dabbi variety of red chilli seeds has declined by 40 percent, while in Andhra Pradesh and Telangana, the business of Teja variety seeds has decreased by 20 percent.
The sale of other categories of red chilli seeds has decreased by 30-35 percent. According to trade analysts, compared to last year, during the current Kharif season, the production area of red chilli has declined by 45 percent in Karnataka, 40 percent in Telangana, 40 percent in Madhya Pradesh and 35 percent in Andhra Pradesh.
Last year, the total production area of red chilli at the national level had improved to 13 lakh acres, which is estimated to decrease by 35-40 percent to 9.00-9.50 lakh acres in the current year.
By the end of July 2025, there was a stock of about 2.50 crore bags (900 million kg) of red chilli in the cold storage of the producing states, which is much more than the stock of 1.50 crore bags (500 million kg) available on the same date last year.
According to a trader, the area of red chilli in Karnataka may decrease by 20-25 percent. The area of interest will decrease more.