Weekly Review – Red Chilli

12-Apr-2025 08:00 PM

No Sign of Slowdown in Red Chilli Prices

New Delhi: The prices of red chilli are expected to remain firm in the coming days, say trade insiders. Despite current prices being lower than last year, there is no major slowdown expected as arrivals are gradually decreasing, and good quality stock is limited.

Market Arrivals

  • Guntur (Andhra Pradesh): 1–1.25 lakh bags/day

  • Khammam (Telangana): 60–70 thousand bags/day

  • Warangal: 40–45 thousand bags/day
    Traders estimate that arrivals will decline further as most farmers have already sold their stock and are now holding out for better prices.

Production

  • Andhra Pradesh: ~1.5 crore bags (down from 2 crore last year)

  • Telangana: 60–65 lakh bags (vs 70–80 lakh last year)

  • Other states: Also reporting lower yields

Price Movement

  • April 2024, Teja variety in Guntur was Rs. 178–180/kg

  • Currently quoted at Rs. 128–130/kg in Guntur

  • Khammam: Rs. 132–135/kg
    Traders expect a rise of Rs. 15–20/kg by June–July, especially before the summer break in Guntur (May 10 – June 10).

Stock Position

  • Guntur Mandi: 53–55 lakh bags

  • Andhra Pradesh (total): 72–75 lakh bags

  • Khammam: 19–20 lakh bags

  • Warangal: 18–19 lakh bags
    Last year, Guntur had over 1.10 crore bags in stock by May 1, showing a sharp year-on-year drop.

Export Scenario

  • Export volume (Apr–Dec 2024): 4.36 lakh tonnes (+14%)

  • Export revenue: Rs. 7111.29 crore (-10% due to lower prices)

  • Full year (2023–24): 6.01 lakh tonnes exported, earning Rs. 12,492.48 crore

Despite higher export volumes, the dip in international prices has affected revenue. However, strong export demand and lower domestic stocks are expected to support price growth moving forward.

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