The chilli market is seeing a surge in supply as harvests are in full swing across major growing areas. In Madhya Pradesh, around 1 lakh sacks of chillies were harvested last week, leading to a drop in prices as fresh chillies quickly flood the markets. Gujarat is also expected to add to the supply starting in late November.

Sales of older chillies are slowing down, with only 50-60% of the older stock moving in key markets like Guntur and Khammam. The hot weather is causing chillies to dry out faster, which is putting pressure on farmers and stockists to sell off their remaining stock. With more fresh chillies arriving, markets are facing price pressure. While southern markets like Guntur and Khammam are seeing active sales, northern regions like Madhya Pradesh are preparing for even more supplies in the coming weeks. This flood of fresh chillies is keeping prices under pressure across the country.