Weak Production Forecasts Point to Rising Red Chili Prices

27-Jan-2026 12:02 PM

Warangal: Domestic production of red chilies during the 2025-26 season is expected to decline significantly compared to last year, due to reduced acreage and the impact of thrips infestation and wilt disease in some key producing regions, which is likely to affect average yield and quality.

Strong demand for red chilies in both domestic and international markets is indicating a significant price increase.

According to trade analysts, red chili prices have firmed up in the agricultural produce markets of Warangal and Khammam.

There is heavy off-take from cold storage facilities. Demand from traders and exporters remains strong, while supply is relatively low.

Last week, the wholesale market price of red chilies briefly surged to ₹22,000 per quintal, the highest level in the last three years.

However, the price could not sustain this peak and has now fallen to between ₹15,000 and ₹18,500 per quintal.

This price is still considered quite strong. Producers say that the price of red chilies is currently around ₹18,500 per quintal, which is a satisfactory level for farmers.

Five years ago, the area under red chili cultivation in Telangana had increased to approximately 1.25 lakh acres, but this has decreased to 30,000 acres in 2025. 

Falling prices have reduced the enthusiasm and interest of Telangana farmers in cultivating this important spice crop.

Experts say that concerns remain regarding the quality of the next crop. The early sown crop in Andhra Pradesh and Telangana is being affected.

There are reports of crop damage due to excessive moisture and rainfall. As a result, demand for old stock remains strong.