High Supply and Weakening Demand Affect Indian Red Chilli Prices

Trade experts anticipate a USD 0,06-0,084 per kg decline in red chilli prices in the coming days due to high arrivals and slowing demand. Indian stockists and exporters have reduced their buying activity, causing prices to stabilize or decline.

Current Red Chilli Price Levels

• Arrival Volume: Red chilli arrivals in Andhra Pradesh and Telangana remain high, averaging 100,000 bags per day in Guntur market.
• Past Season Comparison: Last season's peak arrivals stood at 150,000 bags daily, indicating a lower supply this year.
• Export Activity: Stockists, local buyers, and exporters have shown interest previously, but demand has dropped significantly in the last few days.

Warangal Market Update

The Warangal chilli market is also under supply pressure, receiving 25,000-30,000 bags per day. As a result, prices for various red chilli varieties are stabilizing.

Production and Supply Factors

Despite a 25-30% reduction in red chilli sowing, productivity remains strong due to favorable weather conditions. This has resulted in consistent crop quality, ensuring steady supply in the markets.

Export data shows that 377,778 tonnes of red chilli have been shipped so far in FY 2024-25, a 10% increase from the previous year. However, total revenue from exports has dropped 13%, indicating a possible price correction due to reduced profitability.

Conclusion: Prices Likely to Decline Further

With seasonal demand fulfilled and export interest declining, prices may continue to decline by USD 0,06-0,084 per kg if fresh demand does not emerge soon. However, traders remain cautious as price stabilization is expected in the medium term.