Record Surge in Indian Red Chilli Exports - A Boon for Exporters
Significant Growth in Export Volume
Indian red chilli exports have reached an unprecedented milestone, driven by substantial purchases from key international markets like China and Bangladesh. In the fiscal year 2023-24, red chilli exports surged to a record $1,509 billion, reflecting a 15 percent increase compared to the previous year's $1,30 billion. According to data from the Spices Board, the volume of red chilli exports in 2023-24 rose by 15 percent compared to the previous year. Red chilli exports accounted for approximately 34 percent of India's total spice exports. Which were valued at $4,46 billion in 2023-24.The dominance of China and Emerging Markets
China emerged as the largest buyer of Indian red chillies during 2023-24, with imports surpassing 0.179 million tonnes. This represents a 14 percent increase in volume. In 2022-23, China imported over 0.157 million tonnes of Indian red chillies. After a dip in 2022-23, red chilli exports to China rebounded due to rising demand from the oleoresin and culinary sectors. China primarily imports the Teja variety for oleoresin extraction, highlighting its significance in the market. Thailand, the second-largest buyer in value terms, saw its imports increase by 10.6 percent from the previous year. Volume-wise, exports to Thailand rose by about 10 percent to 59,838 tonnes from 54,512 tonnes in 2022-23. Bangladesh also significantly boosted its imports, with shipments rising by 67 percent to about 90,570 tonnes in 2023-24 from 53,986 tonnes the previous year.ÂExpanding U.S. Market and Domestic Production
The United States saw a notable increase in red chilli imports from India. Shipments rose by 25 percent to 36,413 tonnes in 2023-24 from 29,173 tonnes the previous year. Domestically, red chilli is a crucial commercial cash crop cultivated extensively across India. Andhra Pradesh stands as the largest producer of red chillies, followed by Telangana, Madhya Pradesh, and Karnataka. The increasing production of both green and red varieties is a testament to the crop's importance in Indian agriculture.The remarkable growth in Indian red chilli exports highlights the robust demand and market potential for this vital spice. Key markets such as China, Bangladesh, Thailand, and the U.S. have shown significant increases in imports, highlighting the global appeal of Indian red chillies. For exporters, this surge presents substantial opportunities to expand their reach and enhance profitability. The consistent rise in domestic production further strengthens India's position as a leading exporter of red chillies.
