New Delhi. Currently, red pepper prices are trading strongly because stocks of high-quality goods are believed to be low at producing centers. While Bangladesh is consistently buying, Chinese buying remains low. New red peppers have begun arriving in Madhya Pradesh markets, but reports are emerging of low production in Madhya Pradesh for the second consecutive year.

Due to growers not receiving a fair price for their produce during the current season, red pepper sowing has declined in all producing states this year. Sources believe that red pepper sowing in Madhya Pradesh is 25-30 percent lower than last year, while the area under sowing in Andhra Pradesh and Telangana is down 35-40 percent. Reports indicate that red pepper sowing in Karnataka is also half of last year's level. Due to reduced sowing, national red chili production is expected to decline for the second consecutive year. New red chili peppers have already arrived in Madhya Pradesh, but arrivals in Andhra Pradesh and Telangana will begin in January-February.

Informed sources indicate that reports of low red chili production in the country are emerging for the second consecutive year. According to information received, this year's red chili production in Madhya Pradesh is expected to be 20-25 lakh bags. Production in 2024 was estimated to be 30-32 lakh bags and in 2023, it was estimated to be 35-38 lakh bags. However, there are no reports of pest infestation of the crop in Madhya Pradesh this year, which will result in good quality.

In Andhra Pradesh, a major producing state, the January harvest is also expected to be low for the second consecutive year due to a decrease in sowing area. It is noteworthy that during the year 2023, the production of red pepper in Andhra Pradesh was approximately 20 million bags, which has decreased to 360 million bags (each bag weighing 40/45 kg) in the year 2024. There are reports of further decline in production during the year 2025. The upcoming crop in Telangana will also be less than last year. Last season, the production of red pepper in Telangana was estimated to be 60/65 lakh bags, whereas in the year 2023, the production was 75/80 lakh bags.

Currently, the price of red pepper is being quoted at a high rate. However, the price of good quality pepper is only 20/25 percent of the total arrival in the markets. Daily arrival of red pepper in Guntur market is 60/70 thousand bags, and the price of Teja is being quoted at Rs 151/152 per kg. Whereas in Khammam, the price of Teja is ₹152/153. It is noteworthy that during the month of August, the price of Teja red chilli in the markets of producing centers was ₹138/140 per kg. Sources believe that there is no possibility of a decline in prices in the near future, but after Diwali, the rising prices may stop for some time due to the increase in the arrival of new goods in the markets of Madhya Pradesh.

According to the information received, the current stock of red chilli in producing centers and consumption centers is estimated to be around 56 crore bags. There are reports of 60/65 lakh bags in the markets of Andhra Pradesh, while the stock in Telangana is estimated to be 30/35 lakh bags. Although the stock is sufficient, there are reports of excess stock of low quality.

In the first four months of the current financial year 2025-26, red chilli exports registered a remarkable 63 percent increase in volume, while revenue increased by 31 percent. According to data released by the Spices Board, during April-July 2025, red chilli exports amounted to 270,867 tonnes, generating revenue of ₹3,888.61 crore. In April-July 2024, red chilli exports were 1,65,923 tonnes, generating revenue of ₹2,977.95 crore. During the year 2024-25 (April-March), total red chilli exports amounted to 7,15,506 tonnes, generating revenue of ₹11,404.90 crore.