Dry chilli prices in India have started climbing in the past week as cultivation area dropped sharply and new crop arrivals are delayed by almost a month. The situation has sparked strong interest in cold storage stocks and is expected to keep prices firm through early 2025.
### 📉 Chilli Acreage Falls by 30–40% Across Key States
India’s chilli acreage has declined by **30–40% this kharif season**, mainly because of **low prices last year** that discouraged farmers. Many growers in **Andhra Pradesh, Telangana, and Karnataka** have shifted to other crops like **maize, cotton, and tobacco**.
According to **Sambasiva Rao Velagapudi**, President of the **Chilli Exporters Association (Guntur)**, chilli planting is down **around 40%** in Andhra and Telangana, and almost **50% in Karnataka**. Heavy rains also damaged crops in some areas, forcing replanting and further reducing yield.
**Sandeep Voddepalli**, General Manager at **BigHaat Agro Pvt Ltd**, said total chilli acreage (including damaged crop area) could be **around 40% lower** than last year.
### 🌾 Decline Across All Major Chilli-Growing States
The drop in cultivation has affected **all five major chilli-producing states** — **Andhra Pradesh, Telangana, Karnataka, Maharashtra, and Madhya Pradesh**.
Popular **colouring chilli varieties** like **Byadgi, Dabbi, and 5531** have also seen a big decline in area.
- **Byadgi chilli** acreage in Karnataka is down by nearly **50%**.
- In **Madhya Pradesh**, chilli area has reduced by **around 30%**.
According to **Basavaraj Hampali** of Hampali Traders (Hubballi), acreage is down **25% or more** in Karnataka. Heavy rains hit regions like **Kundagol and Annigeri**, though the **Ballari region** still shows a healthy crop.
### 💰 Dry Chilli Prices Up 15% – Demand for Cold Storage Stocks Rising
With reduced supply and delayed arrivals, **dry red chilli prices** have risen by **around 15%** compared to July–August levels of ₹130–₹135 per kg.
Cold storage chillies are now in high demand, and traders expect prices to stay **firm or increase further** until the new crop hits the market — likely around **January 20**.
Dry chilli stocks in **cold storages** are estimated at **1.5 crore bags**, similar to last year. However, since new arrivals are delayed, prices are expected to remain strong.
In the last two months:
- Local consumption varieties like **5531, 341, and 334** have gone up by **₹30 per kg**.
- Export variety **Teja chilli** rose only **₹10 per kg**, due to weak export demand.
### 🌏 Export Market Update – China Slows Down Purchases
**China**, India’s biggest buyer of dry red chillies, has already purchased about **5,000 more containers** than last year. With higher stock in hand, Chinese buyers are currently not making new deals, especially for the **Teja variety**, which has slowed export demand.
### 📊 Production Outlook for 2024–25
According to **Spices Board of India** data:
- **Red chilli production (2024–25):** 26.93 lakh tonnes
- **Cultivation area:** 9.21 lakh hectares
- **Last year (2023–24):** 29.09 lakh tonnes from 9.65 lakh hectares
This indicates a **year-on-year decline in both acreage and output**, which will likely keep chilli prices elevated for the next few months.
### ✅ Key Takeaways
- 🌾 **Acreage down 30–40%** due to low prices last year and crop damage from rains.
- 🕒 **New crop delayed** by around 25 days; arrivals expected only by January 2025.
- 💰 **Prices up 15%** since July; cold storage demand increasing.
- 🌏 **Exports steady but China slowing demand** for Teja variety.
- 📉 **Production expected to fall**, keeping prices strong in the near term.
### 🧑🌾 What It Means for Farmers and Traders
For farmers, the reduced supply and higher prices could bring better returns in the coming months. For **traders**, maintaining **cold storage stocks** and watching **January arrivals** will be key to managing demand and pricing.