New Delhi. Red pepper trading remained subdued during the current week. Markets in most consumption centers were closed due to the festive season. Export trade was also limited. Rainfall in Andhra Pradesh, a major producing state, also reduced arrivals in Guntur market. Arrivals were light in quantity. New arrivals have begun in Madhya Pradesh markets. Arrival pressure will build in November. However, due to low production, prices are unlikely to decline significantly despite the pressure. Sources say that due to low prices at the time of sowing, acreage has declined in all producing states this year. In Madhya Pradesh, acreage has been reduced by 25-30 percent, while reports indicate a 30-35 percent decrease in sowing in Andhra Pradesh and Telangana. Sowing in Karnataka was also lower compared to last year. Due to a decrease in sowing area, red chili production is expected to decline for the second consecutive year. Arrivals of new red chili peppers will begin in January in Andhra Pradesh and Telangana.

Due to poor sowing and the current unfavorable weather, red chili production in the country is expected to decline for the second consecutive year. Sources believe that red chili production in Madhya Pradesh is expected to be 20-25 lakh bags during the current season. Production is projected to be 30-32 lakh bags in 2024 and 35-38 lakh bags in 2023.

The January harvest in major producing states, Andhra Pradesh and Telangana, is also expected to be low. It is noteworthy that the red chili production in Andhra Pradesh, which was estimated to be around 20 million bags (each bag weighing 40-45 kg) in 2023, has declined to 15 million bags in 2024. There are reports of a decline in production even during the current year 2025-26. It is estimated that the upcoming crop will remain around 1.25 crore bags. A decline in production is also being predicted in Telangana. Last year, Telangana production was estimated to be 60-65 lakh bags, while in 2023, production was expected to be 75-80 lakh bags.

Experts believe that there is no possibility of significant fluctuations in red chili prices in the near future. Due to supply pressure in Madhya Pradesh, prices may fall by 2-4 rupees per kg. A further decline is unlikely. Due to the decline in quality chili peppers in Guntur market of Andhra Pradesh, the arrival of red chili peppers is decreasing, while export demand remains stable. Currently, the arrival of red chili peppers in Guntur market is 30-40 thousand bags, while the arrival in Khammam is 8-10 thousand bags. Teja quality is being quoted at Rs. 147/148 per kg in Guntur market and Rs. 150/151 per kg in Khammam.

Due to continued buying from Bangladesh, red chilli exports registered a remarkable 63 percent increase in the first four months of the current financial year. However, due to lower prices, revenues have increased by 31 percent. According to data released by the Spices Board, red chilli exports during April-July 2025 amounted to 270,867 tonnes, with export revenues of Rs. 3888.61 crore. Last year, in April-July 2024, red chilli exports were 165,923 tonnes, with export revenues of Rs. 2977.95 crore. Total red chilli exports during 2024-25 (April-March) amounted to 715,506 tonnes. And the income received was Rs 11404.90 crore.