News & Updates

India: Red Chilli Market Stayed Primarily Stable In 2021

by | Dec 15, 2021 | Chili, Spices

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The overall market sentiment for red chilli for 2021 was steady. Earlier it was predicted the stable nature of the market resulted in an increase in the sowing of the crop for higher production. However, the scenario has changed due to crop damage.

Overall Scenario Of Red Chilli For The Year

  • In the months of January, March, and August, there was a significant price hike for the crop in the marker.
  • Slight dip in the prices were marked in the months of February, April, July, and September
  • Major up and down in the price of red chilli was observed in the month of June
  • Rest of the months, i.e., May, October, November, and so far in December, the market has kept between being firm and steady for the spice.

Factors supported the price

Several factors resulted in the price being stable for the red chilli. They were:

  • Good local demand for the crop and the increased demand for superior quality crops across the year.
  • There was good export demand for superior quality red chilli.
  • At times, the lowering of the arrival of the products in the market while there being a good demand resulted in prices going in an affirmative mode.
  • Due to heavy rain and pest attacks in the crop grown at Andhra Pradesh and Karnataka, the buying has increased, making the market bullish.
  • The stockists have become active in buying the good quality that is available in the market.
  • The news of poor-quality produce arriving in the market while stockists held on to the better products in the cold storage made the price go up too.

Current Situation

  • The heavy rainfall has impacted the chilli growing areas in Karnataka, and the crop damage is expected to be between 8 to 10 percent.
  • Farmers of the region are afraid of the quality of the chilli being low in the area too.
  • In the chilli growing areas of Andhra Pradesh and Telangana, the pests affected the standing crops, and farmers are trying to limit the damage by uprooting the infested crops.
  • The fresh stocks arriving in the Byadgi market are about 12,000 bags, which is down by 7,000 compared to the previous week (last week of November). The arrival is less due to the heavy rains the region faced earlier.
  • Also, the crops have 10 to 12 percent moisture.
  • The price in the Byadgi market is hence up by $19.77 – $26.36 per 0.1 metric ton
  • New chilli has also arrived in the Bedia market, and the prices have been down by $6.59 per 0.1 metric ton due to an increase in the arrival.
  • The Guntur market will start having new stocks from January, where there is the lingering fear of limited arrival of products due to crop damage.

Arrivals In The Market

  • In Guntur marker between 1st January to 7th December, the red chilli arrival was about 678,645 MT.
  • It is more than last year by 20.31 percent during the same period when the arrival was reported to be about 564.075 MT.
  • Market was affected between 23rd March to 16th May due to the COID-19 second wave lockdown.


Red Chilli S4 Stemless

December 14 2,04 per kg FOB
November 11( Lowest of the year) 2,00 per kg FOB
April 4 (Highest of the year) 2,31 per kg FOB.


Earlier it was estimated that the production of red chilli to be up by 15.10% compared to last year. As a result, the production of red chilli was going to be around 1.593 million MT in 2022 compared to the previous year’s 1.3854 million MT last year. Also, it was reported that hybrid varieties mostly cover the increase in acreage by 25 to 30 percent. But whatever the variety, the increase in production was expected to impact the prices negatively.

However, with the recent news of crop damage, the estimate has been revised to 1.466 million MT for 2022.

It is also predicted that the Red Chilli 334 quality might trade between $151.55 and $197.67 per 0.1 metric ton in the coming days.

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