New Delhi. Red chili prices rose during the current week. This was due to good demand for high-quality chilies, as stocks of old produce at production centers were of inferior quality, and the arrival of new produce did not increase as expected. As a result, at the beginning of the current week, the price of Teja quality chilies in the Guntur and Khammam markets increased by Rs. 200-300 per quintal. It is noteworthy that due to the Makar Sankranti and Pongal festivals during the current week, the markets remained closed for three days. Due to producers not receiving fair prices for their produce in the last two years, the area under red chili cultivation is decreasing at the production centers. In the major producing state of Andhra Pradesh, red chili cultivation was done on 259,119 acres during the current season, while the cultivated area in 2024 was 363,539 acres. In 2023, cultivation was done on 571,722 acres. The situation was similar in Telangana. During the current season, red chili cultivation in Telangana was done on 138,460 acres, while in 2024 it was 222,370 acres and in 2023 it was 341,326 acres. In Madhya Pradesh, cultivation has also decreased by up to 50 percent this year. Reports also indicate that the cultivated area in Karnataka is 40 percent less compared to last year.

According to available information, the arrival of new produce in Guntur, a major market in Andhra Pradesh, has reached 20,000-25,000 bags. While in Hyderabad, the arrival is 2,000-2,500 bags. In the Khammam market, the arrival of new produce has started at 7,000-8,000 bags, and in Warangal, it is 2,000-3,000 bags. Sources say that arrivals in the markets will start increasing from next week.

Due to weak sowing and unfavorable weather, red chili production in Andhra Pradesh during the current season is estimated to be around 12.5 million bags, while last year's production was estimated at 15 million bags. Production was estimated at 20 million bags in 2023. Red chili production remained low. Production is reported to be around 1.8 to 2 million bags, while last year's production was estimated at approximately 3 million bags. Sources say that about 80-85 percent of the total production has already arrived in the markets of Madhya Pradesh.

Knowledgeable sources say that there is little possibility of a significant decline in red chili prices. This is because of lower production. However, prices may fall temporarily in the coming days as the arrival of new dry chilies increases. As arrivals decrease, prices will start rising again. Sources believe that the price of Teja variety red chili could touch the Rs. 200 level during 2026. Currently, the price of Teja variety red chili in the Guntur market is being quoted at Rs. 152-154.

In the first year of the current financial year 2025-26, red chili exports increased by 31 percent in terms of quantity, while other spices registered a 9 percent increase. According to data released by the Spices Board, 432,436 tonnes of red chilies were exported during April-October 2025. And the revenue earned from exports was Rs. 5886 crore. While during April-October 2024, 220,695 tonnes of red chilies were exported, and the revenue earned was Rs. 5398.63 crore. During the year 2024-25 (April-March), the total export of red chilies was 715,506 tonnes, and the revenue earned from these exports was ₹11,404.90 crore.