Unlikely to see a price surge in red chili: Arrivals increase in Madhya Pradesh
New Delhi. Currently, trading activity for red chili—both for local consumption and exports—has slowed down as new-season red chili has begun arriving in the agricultural markets (mandis) of Madhya Pradesh. Furthermore, new stock has also started reaching the Byadgi market in Karnataka and the Hyderabad market in Andhra Pradesh. Due to an increase in the area sown by farmers this season, the total yield is expected to be higher. Although there were earlier concerns that the crop might be adversely affected by water shortages in Andhra Pradesh and Telangana, recent rainfall has reportedly benefited the crop. In the Guntur market of Andhra Pradesh and various markets across Telangana, the arrival of new-season red chili is expected to commence in January-February.
Notably, thanks to both an expanded sowing area and favorable weather conditions, red chili production in Madhya Pradesh is projected to reach 5.2–5.5 million (52–55 lakh) bags this year, compared to 2.6–2.8 million (26–28 lakh) bags last year. Currently, the major market of Bedia in Madhya Pradesh is receiving 22,000–25,000 bags of new-season red chili, with the 'Mahi Phulkat' variety quoted at ₹210–₹220 per unit. Meanwhile, the Byadgi market in Karnataka is receiving 8,000–10,000 bags, with the 'KDL' quality variety priced at ₹58,000–₹63,000. In Hyderabad, other varieties are arriving at a volume of 700–800 bags, with the new 'Teja' variety quoted at ₹190–₹220 per unit. In the Guntur market, the price for 'Teja' variety (cold-stored) is quoted at ₹225–228 per kg, while in Khammam, it is ₹235 per kg, and in Warangal, it ranges between ₹225 and ₹226 per kg.
Sowing Estimates
In Madhya Pradesh, the area sown with red chilies has increased by 1.5 to 2 times, while reports from Andhra Pradesh and Telangana also indicate a 1.5-fold increase in the sown area. Last year, red chili production stood at 12.5 million (1.25 crore) bags in Andhra Pradesh and 4.5–5 million (45–50 lakh) bags in Telangana. Sources suggest that if weather conditions remain favorable for the crop, production in Andhra Pradesh and Telangana is likely to increase.
Stocks
Due to a decline in red chili production last year, current stock levels at major producing centers are lower compared to the previous year. According to available information, the current stock in the Guntur market is estimated at 2.5–2.6 million (25–26 lakh) bags, whereas it was 3.5–3.6 million (35–36 lakh) bags during the same period last year. Similarly, in the Khammam and Warangal markets of Telangana, stocks are reported to be around 2–2.2 million (20–22 lakh) bags, compared to 2.8–3 million (28–30 lakh) bags last year.
Reduced Exports
Red chili exports have declined compared to last year, driven by weak demand from China and high domestic prices, which have also impacted exports to other countries. According to data released by the Spices Board, red chili exports for the current season (April–May 2026) totaled 119,438 tonnes, generating an export revenue of ₹2,603 crore. In contrast, during the same period last year (April–May 2025), exports reached 185,011 tonnes, with an export revenue of ₹2,592 crore. It is noteworthy that during the year 2025-26 (April–March), the export of goods stood at 683,681 tonnes, with export earnings amounting to ₹10,395.59 crore. In the year 2024-25, exports totalled 715,506 tonnes, generating earnings of ₹11,404.90 crore.
