Red Chilli Prices Strengthen in Guntur, AP

The red chilli market in Guntur has witnessed a notable uptick, with prices increasing between USD 0,12 and USD 0,24 per kg due to a slowdown in arrivals coupled with vigorous buying by stockists. This surge is bolstered by constrained supply across prominent mandis and consistent demand that has elevated prices for various red chilli types.

Adjustments to Supply Constraints

In the latest season, arrivals in Guntur have dwindled to about 125,000 bags per week, a drop from the peak of 150,000 bags seen in previous seasons. This reduced supply has been instrumental in bolstering market prices, even as traders remain cautious about the future arrival rates.

Detailed Price Analysis

To provide a clear perspective on the recent pricing trends, here’s a detailed table showcasing the current price range for different varieties of red chilli in Guntur:

Similarly, in Warangal, the market reflects stability with a steady flow of arrivals reporting between 20,000 and 25,000 bags. Price points for prominent varieties have held firm, supporting a healthy trading environment.

Export Performance of Indian Red Chilli

Despite a 25-30% decrease in sowing this season, productivity and crop quality have remained commendable, thanks to favorable weather conditions. This has not only attracted domestic buyers but also caught the attention of international markets.

According to the Spices Board, red chilli exports in the first seven months of the 2024-25 financial year amounted to 377,778.29 tonnes, valued at USD 739.48 million. Although this represents a 10% increase in volume, revenue has seen a 13% decrease compared to the previous period. Nevertheless, the strong demand from exporters is expected to continue, potentially stabilizing prices further.

Future Prospects and Strategic Insights

With the ongoing support from both domestic and international buyers, the market is positioned for potential modest price increases. Current market levels are attracting interest, suggesting a favorable climate for stakeholders to engage actively. Traders are advised to monitor the market closely and leverage the robust demand, especially from exporters, to navigate through the upcoming months successfully.

Click here to reach our trading platfrom CMBroker