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India: Red Chilli Prices Won’t Be Bearish

Mintec Global
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There has been an increase in the arrival of red chilies ahead of the summer vacation. However, it won’t cause any slowdown in the price. Farmers have increased their sales. So has the consumption of the product. Experts believe it will stay that way for the time being.

Current Scenario 

At present, the arrival of red chilies has increased to 60 to 70 thousand bags. Earlier, farmers in Andhra Pradesh and Telangana had limited the sale of their red chili crops for some time to get higher prices in the future.

However, despite the increase in arrivals in Guntur, local stockists and buyers were reported to have strengthened buying. Apart from this, the demand of the manufacturers is supporting the price.

Earlier, there was speculation that the red chili crop would be weaker than usual in the three major states of southern India, Andhra Pradesh, Telangana, and Karnataka. It led to the price staying higher than expected in the local grocery stores despite the arrival of new crops.

Surprisingly, from the beginning of the season till recently, reports suggest red chili prices have remained strong in the major spot markets across the country. It is even after the farmers increased their sales. The wedding season also supports the commodity price despite the increase in the arrival across the major producing states and spot markets.


The monsoon is expected to start soon; hence, there is no fear of a prolonged price recession. Despite China not having made any purchases yet, they will likely start buying soon. It means the price of red chili will stay between being stable and firm.

 Price Trend  

In Andhra Pradesh Teja variety was reported to be sold between $0,19 and $0,23 per kg

334 variety price was between $0,20 and $0,24 per kg

Phatki was said to have earned between $0,64 and $1,54 per kg.

In the Warangal spot market of Telangana, the prices were as follows:

Reports stated the selling price of the Teja variety was between $2,06 and $2,31 per kg

In Delhi grocery markets, the wholesale price of variety 334 remained between $2,21 and $2,40 per kg after gaining by $0,02 per kg.

Chilli S4 Stemless

12 – 16 May$2,33 per kg FOB
10 – 11 May$2,32 per kg FOB
5 – 9 May$2,30 per kg FOB
4 May$2,28 per kg FOB
2 – 3 May$2,25 per kg FOB