Chilli Prices Take a Sharp Fall

Indian chilli farmers are facing tough times as prices have dropped 35% due to weak demand, particularly from China. The current price stands at USD 1,44-1,56 per kg compared to USD 2,28 per kg in January 2024.

Experts at Prof. Jayashankar Telangana State Agricultural University initially predicted that prices would range between USD 1,74-1,98 per kg during the January-March 2025 harvesting period. However, the global demand slump has led to unexpected declines.

Chilli Exports See a Decline

According to a recent government report, red chilli exports in September 2024 fell by 4,09%, with 36.276 tonnes exported. The Spices Board’s data shows that between April and October 2024, India exported 3,31 million tonnes of chilli, valued at USD 645,15 million, compared to 3,04 million tonnes worth USD 757,84 million in the previous year. This marks a 15% drop in export value during the first half of the current fiscal year.

Farmers Struggle as Prices 

Many farmers in Telangana stored their produce in cold storage, hoping for a price recovery. However, as prices continue to fall, they are now forced to sell at lower rates. Chilli prices have dropped 50% compared to 2023, when they reached USD 3,00 per kg.

"We expected better prices, but with no signs of improvement, we are suffering heavy losses," said Bonthu Rambabu, a senior leader of Telangana Rythu Sangham.

Declining Chilli Acreage and Production 

India leads the world in chilli production with 2,78 million tonnes annually, with Andhra Pradesh and Telangana at the forefront. Telangana ranked third in acreage (0,392 million acres) and second in production (0,794 million tonnes) in 2023-24. However, the state’s productivity of 2,021 kg per hectare remains below the global average of 3,229 kg per hectare.

Farmers also reported significant losses due to pests and diseases, reducing yields by up to 40%. The total chilli-growing area in Telangana has shrunk from 0,45 million acres to 0,234 million acres in recent years, yet demand remains sluggish.

Farmers Demand Government Intervention

Chilli farmers in Telangana are urging the central and state governments to step in and stabilize prices. Protests have erupted in areas like Lalapuram in Khammam district, where growers are demanding a minimum assured price of USD 2,40 per kg.

Shobhan Mood, Telangana Rythu Sangham’s State Joint Secretary, called on Nafed and Markfed to intervene immediately by purchasing chilli stocks to prevent further distress among farmers.

Conclusion: What Should Farmers and Traders Do?

Given the current market trends, chilli farmers should consider reducing their dependence on exports to China and explore alternative international markets. Traders might benefit from monitoring price trends closely and securing stocks at lower rates before potential government intervention. If prices recover in the coming months, stored produce could fetch better rates. However, immediate action from policymakers remains crucial to prevent further losses in the farming community.









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