Supply Growth Accompanied by Rising Prices

In Guntur Mandi, Andhra Pradesh (India), red chilli prices are steadily increasing even as supply grows. Stockists and traders are purchasing large quantities following the end of the monsoon season, driving up prices. This upward trend occurs despite a 17% drop in exports during the April-June 2024 quarter.

Stable Prices in the Local Market

Locally, the 334 variety of red chilli remains stable, priced between rupees 180 and 190 per kg, while Teja red chilli is selling at rupees 190 to 210 per kg.

Jugaraj Bhandari, a trader from Guntur, noted an uptick in arrivals, with 50,000 sacks now entering the market, compared to the previous 40,000-45,000. As a result, Teja red chilli prices have increased by rupees 100 to 160 per kg, while the 341 variety has seen a rise of rupees 100 to 120 per kg, now priced between rupees 140 and 170 per kg.

Export Figures Decline

The Spices Board of India reported that 1,14,102.69 tonnes of red chilli were exported during the April-June 2024 period, generating rupees 2,226 crores in revenue. This reflects a 17% drop in export volume and a 28% decrease in revenue compared to the same period last year.

With the monsoon season ending and the festive season approaching, traders expect demand for red chillies to increase. However, the arrival of new crops from Madhya Pradesh next month could impact prices.

Conclusion: Prices Likely to Stay Firm

Despite the growing supply, prices are expected to remain firm due to limited stock and concerns over weaker crop conditions in Madhya Pradesh. Traders are closely watching market trends in the coming weeks.