New Delhi. Red chili prices remained firm during the week. Sowing has reached only 40–50% of the target in major producing states like Andhra Pradesh and Telangana due to a rainfall deficit; however, sources indicate that recent rains will soon accelerate sowing operations. Although sowing has been delayed by about a month, the acreage is expected to increase as farmers are fetching high prices. Reports also suggest that red chili sowing in Karnataka will exceed last year's levels. Notably, driven by attractive prices, the area under red chili cultivation in Madhya Pradesh has expanded to two to two-and-a-half times that of the previous year. Post-sowing weather conditions have been favorable, and the crop is currently reported to be in good health. Arrivals of the new crop have recently commenced at the major *mandi* (market) in Bedia, with 35–40 quintals of new red chili arriving. Prices for the new stock were quoted at ₹150–170 per kg for the stalk-on variety and ₹200–240 per kg for the stalk-cut variety. Sources believe that if weather conditions remain favorable, red chili production in Madhya Pradesh could reach 55–60 lakh bags this year, compared to 25–28 lakh bags last year.

It is worth noting that the current low stock levels in the markets are a result of reduced sowing acreage in producing regions last year. This scarcity of stock is contributing to the high price quotes.

According to information from production centers, the current red chili stock in Guntur—the major market—is reported to be around 34–35 lakh bags, whereas during the same period last year, it was estimated at 44–45 lakh bags. Similarly, stock levels in the Khammam market are reported at 14–15 lakh bags, compared to 18–20 lakh bags last year. In Warangal, the stock is estimated at 12–13 lakh bags, down from 17–18 lakh bags during the corresponding period last year.

Since the bulk of the total produce has already reached the markets, current arrivals of farmers' stock are quite low. Arrivals in the major Guntur market have dropped to 10,000–12,000 bags, while Khammam is seeing 8,000–10,000 bags and Warangal 5,000–6,000 bags. Sources indicate that the arriving farmers' stock is of lower quality; most trading currently involves stocks from cold storage.

While buying by exporters is currently limited, prices remain firm due to low arrivals. Prices for the 'Teja' variety are currently quoted at ₹225–226 per kg in Guntur and ₹229–230 per kg in Khammam. Sources suggest the market will remain strong, as the pressure of new crop arrivals from Madhya Pradesh markets is not expected until October; significant price drops are unlikely before then. However, if weather conditions in Madhya Pradesh turn adverse in the coming days, prices could rise.

Red chili exports have remained lower compared to last year due to weak demand from China and subdued demand from other countries, driven by high prices. According to available information, the volume of red chili exports declined by 35 percent during the first two months (April–May) of the 2026–27 fiscal year; however, earnings remained on par with the previous year due to higher export prices. Data released by the Spices Board indicates that red chili exports totaled 119,438 tonnes during April–May 2026, generating revenue of ₹2,603 ​​crore. In contrast, exports during April–May 2025 stood at 185,011 tonnes, with earnings of ₹2,592 crore. For the 2025–26 fiscal year, total red chili exports amounted to 683,681 tonnes, yielding revenue of ₹10,395.59 crore.