Red Chilli New Crop Pushes Prices Down

Fresh red chilli arrivals in key markets of India like Andhra Pradesh, Telangana, and Karnataka have caused prices to fall significantly this year. A good crop, despite a 25-30% reduction in acreage, combined with high carryover stocks, has created a buyer’s market, putting downward pressure on prices.

“The crop is excellent, but large carryover stocks have slowed market movement,” said Sambasiva Rao Velagapudi, Chairman of the All India Chilli Exporters Association.

Falling Prices Across Varieties of Chillis

With new arrivals in Guntur, Warangal, Khammam, and Byadgi, prices of popular chilli varieties have dropped compared to last year:

• Teja Variety: USD 1,56–1,80 per kg
• 341 Variety: USD 1,44–1,80 per kg
• DD Variety: USD 1,44–1,68 per kg
• S10-334 and S4 Sannam: USD 1,32–1,68 per kg
• Byadgi KDL: USD 3,84 per kg, marking a 41% decline from last year.

Buyers are taking their time to make purchases. “The market is quiet, and buyers are confident about availability. They are not rushing to secure stocks,” said Basavaraj Hampali of Hampali Traders.

High Carryover Stocks in Key States of India

Large carryover stocks of red chillies are keeping the supply abundant across major producing states:

• Andhra Pradesh: 3.8 million tonnes, with 3.1 million tonnes stored in Guntur alone.
• Telangana: 3.5 million tonnes.
• Karnataka: 4.0 million tonnes, especially for non-pungent varieties like Byadgi.

Despite steady arrivals, muted demand continues to limit upward price movements.

Export Trends Face Challenges

Exports of red chillies to China, India’s largest buyer, are continuing, albeit at reduced prices. The recent HMPV virus outbreak in China has had no impact on shipments. However, exports to Bangladesh have faced delays due to local issues.

According to Spices Board data:

• Exports between April and October 2024 increased by 0.33 million tonnes, a 9% rise compared to the same period in 2023.
• Export values fell by 15%, generating USD 645 million, down from USD 757 million last year.

Market Conditions Drive Buyer Confidence

The chilli market remains subdued due to high stock availability and steady arrivals. With buyers showing little urgency, prices are unlikely to see a sharp recovery in the short term. Traders and farmers will need to monitor demand closely as the season progresses.

Conclusion: A Season of Slow Movement

Abundant stocks and strong crop performance have created a challenging season for red chilli farmers and traders. Prices remain subdued across all varieties, and demand needs to pick up for the market to regain momentum. As the season unfolds, the balance between supply and demand will shape the market’s direction.





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