Red chilli prices are moving up as less crop is available and demand from both India and abroad is strong.
In Andhra Pradesh, Telangana, and Karnataka, many farmers planted fewer chillies this year because of low returns last season.
Because of this:
Very few chilli loads are coming to the markets.
Traders and cold storages are holding stock, expecting prices to rise further.
Export orders are increasing, especially for Teja and 334 varieties.
Around 1.5 million bags are in cold storage, but that’s not enough to meet growing demand.
Weather in major growing areas is favorable so far.
Prices are expected to remain firm or increase slightly in the coming weeks.
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Current Price Situation
Teja variety: around ₹190 to ₹210 per kg in Guntur
334 variety: around ₹170 to ₹190 per kg in Khammam
Byadgi variety: around ₹150 to ₹165 per kg in Karnataka
(Prices may vary slightly between mandis)
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Main Reasons for Price Rise
🌾 Less chilli planted this year due to last year’s poor returns.
🚜 Lower arrivals in major mandis.
🌍 Strong export demand from countries like China and other Asian regions.
🧊 Limited stock in cold storages, around 1.5 million bags.
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Other Market Factors
🏭 Domestic spice companies are buying early to avoid paying higher rates later.
💰 Stockists and traders are holding stock, expecting prices to rise more.
🌦️ Weather:
So far, weather is good and crop condition is healthy.
Heavy rains or bad weather may affect yield and quality.
Monsoon is expected to stay normal for the rest of the season.
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Production Overview (2024–25 Season)
India is expected to produce about 1.8 million tonnes, with tight stock levels.
China and Vietnam have smaller production this year.
Other countries like Bangladesh and Thailand also have limited supply.
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Suggestions for Farmers and Traders
👨🌾 Farmers: If possible, store and sell later — prices are likely to go up.
💼 Buyers and Traders: Book early to avoid higher costs later.
🌍 Exporters: Keep an eye on Asian demand, especially from China.
🏭 Processors: Buy raw material early before prices climb further.
⚠️ Everyone: Stay updated on weather and mandi trends — sudden changes may affect rates.
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Market Outlook
In the coming days, chilli prices are expected to stay firm or rise slightly.
Low supply and strong buying interest will keep the market bullish.
Farmers who can hold their stock for a few more weeks may get better returns.
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Disclaimer
This report is based on our analysis and observations.
Market conditions can change anytime depending on weather, demand, and arrivals.
All decisions are completely up to you, and we are not responsible for any trading or selling choices made based on this discussion.
Thank you.