Weekly Review- Red Chilli
14-Jun-2025 08:24 PM
No much growth in Red Chilli due to low export trade
New Delhi. Due to bad political conditions abroad, there is lack of export demand for red chilli. Currently, there is sporadic buying from Bangladesh while there is no buying from China in the market. It is noteworthy that after about a month, during the current week, the trade of red chilli started in the major markets Guntur and Khammam. Initially, the prices of red chilli were quoted 3/5 rupees per kg higher in the markets. Due to low buying, the prices remained suppressed at the supply end.
Incoming
At present, the arrival of farmers' goods in the major market Guntur is only 10/15 thousand bags. Due to low quality, cold prices are being traded. Daily trade in Guntur is 40/45 thousand bags. In Khammam market also, 7/8 thousand bags are coming whereas in Warangal, 4/5 thousand bags are coming.
Price
Due to less export and local demand, currently the price of red chilli Teja is being quoted at Rs. 135/138 in Guntur market. Whereas in Khammam market, the price is Rs. 140/141. Teja is also being traded at Rs. 138/140 in Warangal. Knowledgeable sources say that in view of the current situation, there is no possibility of much increase in the prices of red chilli in the near future. Till the situation abroad becomes normal, there will be a rise and fall of Rs. 8/10 in the prices. More rise and fall will depend on the export demand in the coming days.
Production
During the current season, the production of red chilli in the country was less as compared to last year. According to an estimate, the production of red chilli in the major producer state Andhra Pradesh is estimated to be 1.50 crore bags during the current season, whereas last year the production was around 2 crore bags. In Telangana too, the production is reported to be 60/65 lakh bags as compared to 75/80 lakh bags last year.
Stock
Knowledgeable traders say that the stock of red chilli in the major producer state Andhra Pradesh is believed to be around 1 crore bags. There is news of the stock being 62/65 lakh bags in Guntur alone. Apart from this, the stock of red chilli in Khammam Mandi of Telangana is estimated to be 22/24 lakh bags and Warangal 25/26 lakh bags.
Sowing will decrease
Due to the producers not getting the right price for their produce, the sowing of red chilli is expected to decrease in the second year as well. It is noteworthy that at the time of sowing last year, the price of red chilli Teja in the markets of the producing centers was Rs 195/200 per kg, which is currently being quoted at Rs 138/140. Due to low prices, there are estimates of a 20/25 percent reduction in the sowing area. Sowing work has started in Madhya Pradesh, while sowing work in Andhra Pradesh and Telangana is likely to start by the end of the current month.
Exports increased - income decreased
During the year 2024-25, the export of red chilli has increased by 19 percent in quantitative terms, but due to low export prices, there was a decline of 9 percent in income. According to the data released by the Spices Board, during the year 2024-25 (April-March), the export of red chilli was 715506 tonnes and the income received from export was Rs 1140490 lakh. Whereas during the year 2023-24, the export of red chilli was 601084 tonnes. And the income received from export was Rs 1249248 lakh. According to the information received, a record export of red chilli was done during the year 2024-25. Earlier, in the year 2020-21, a record export of 649815 tonnes of red chilli was done.