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Dry red chilli prices are down by about a third this year as the new crop hits the markets in the key producing States of Andhra Pradesh, Telangana and Karnataka. High carry forward stocks and relatively decent crop despite a decline in acreage amidst muted demand has impacted the prices of dry red chillies, according to the trade. “The crop is very good despite a decline in acreages of 25-30 per cent in Andhra.
A good crop along with high carry forward stocks has impacted the prices. The movement of chillies is very slow,” said Sambasiva Rao Velagapudi, Chairman, All India Chilli Exporters Association in Guntur. New crop arrivals have begun in key markets such as Guntur, Warangal, Khammam and Byadgi among others, while the prices are trending lower compared to last year.
Prices of the popular Teja variety are ruling at ₹13,000-15,000 per quintal in Guntur compared to ₹18,000-21,000 in the same period last year. Similarly, other varieties such as 341 is ruling at ₹12,000-15,000 (₹15,000-18,000 in the same period last year), while others like DD are hovering around ₹12,000-14,000 (₹13,000-16,000), while S10-334, S4 Sannam are ruling in the ₹11,000-14,000 range (₹15,000-20,000). In Andhra Pradesh, the carry forward stocks in the cold storages are estimated to be around 35-38 lakh bags of 40 kgs each.
In Guntur alone, the carry forward stocks are estimated at 31 lakh bags, Velagapudi said. Similarly, in Telangana, the carry forward stocks are around 35 lakh bags, he added. In Karnataka, where the non-pungent varieties such as the Byadgi chillies are widely grown, the carry forward stocks are at a record 40 lakh bags (of 30 kgs each), said Basavaraj Hampali of Hampali Traders in Hubballi.
“The arrivals have been good, but the demand is slow. The market is quiet. Its more of a buyers market this year.
The buyers are confident of the availability of red chillies and are not in a hurry to cover their positions,” Hampali said. The Byadgi KDL chilli variety, which ruled at around ₹50,000-55,000 per quintal in January last year, is now hovering around ₹32,000 levels, Hampali said. This is about 41 per cent lower than the same period last year.
Going forward, the prices would depend on the demand-supply situation, he said. Velagapudi said the exports to China, the largest market for the Indian red chillies, were going on but at a lower price. The outbreak of new HMPV virus in China has not had any impact on the spice’s exports, he said.
However, there’s some disruption in shipments to Bangladesh because of the prevailing problems in that country, he said. Per the Spices Board data, India’s chilli exports during the April-October period of 2024 were up 9 per cent in volumes at 3.30 lakh tonnes ( 3.
04 lakh tonnes). However, the shipments were down 15 per cent in dollar value terms at $645 million ( $757 million). Comments.
