New Delhi. Red pepper prices have declined during the current week, but a significant decline is unlikely due to lower production. It is noteworthy that the area under red pepper cultivation has decreased this year in all producing centers, resulting in lower production compared to last year. However, due to increased arrivals of new supplies in the markets of producing centers and weak buying by exporters due to moisture in the new supplies, Teja quality prices declined by up to ₹400/₹500 per quintal. A further decline in prices is expected, but not significantly. Currently, Teja is being quoted at ₹18,200 per quintal in Guntur market and ₹18,400 per quintal in Khammam. It is noteworthy that at the end of January, the price had reached ₹20,500 in Guntur market and ₹21,100 in Khammam.

Due to growers not receiving a fair price for their produce, red pepper sowing has been declining at production centers for the past two years. According to information received, red pepper sowing was done on 259,119 acres in Andhra Pradesh during the current season, compared to 363,539 acres last year. The 2023 sowing area was 571,722 acres. In Telangana, red pepper sowing was done on 138,460 acres during the current season, compared to 222,370 acres last year. In 2023, sowing was done on 341,326 acres. Earlier, in Madhya Pradesh, red pepper sowing was 40-50 percent lower this year. There are also reports of a 30-40 percent decrease in the sowing area in Karnataka compared to last year.

Due to a decrease in sowing area at growing centers and adverse weather conditions, red chili production in Andhra Pradesh is estimated to be around 125 million bags this year. Production in 2024 was estimated to be around 15 million bags and in 2023, it was estimated to be around 20 million bags.

In Telangana, production is also estimated to be 45-50 lakh bags compared to last year's 60-65 lakh bags. Production in 2023 was estimated to be 70-75 lakh bags. Madhya Pradesh's crop has ended. This year, red chili production in Madhya Pradesh is estimated to be 18-20 lakh bags, compared to last year's production of approximately 30 lakh bags.

Currently, the arrival of new goods in Guntur, the main market of Andhra Pradesh, is reaching 75-80 thousand bags. Arrivals in Khammam are 20,000-25,000 bags and in Warangal 14,000-15,000 bags. Sources say that the arrival of dry goods in the markets will begin to increase from next week.

Traders say that red chili prices will remain subdued in the coming days due to pressure from arrivals in the markets. However, as arrivals decrease, prices will begin to rise. Due to the reduction in outstanding stocks and the expected low production, sources say that due to pressure from arrivals in February, red chili prices may fall by ₹10-15 per kg. Prices could reach ₹220-225 at any time in the future.

Due to low prices in the last season, red chili exports increased by 27 percent, while revenue increased by 8 percent. According to the data released by the Spices Board, during April-November-2025, the export of red chilli was 481446 tonnes and the income received from the export was Rs 6634 crore. Whereas in April-November-2024, the export of red chilli was 378061 tonnes and the income received was Rs 6163.47 crore. During the year 2024-25 (April-March), the total export of red chilli was 715506 tonnes and the income received from the export was Rs 11404.90 crore.