The price of Guntur chilli has increased by anywhere between ₹500 and ₹3,000 per quintal, depending on the variety, over just a 20-day period, thanks to a surge in demand from foreign markets and a supply squeeze due to El Niño.
At the same time last year, chilli prices were between ₹15,000 and ₹20,000 per quintal, about ₹90 to ₹100 per kg lower than the current prices. In 2024, dry chilli rates ranged from ₹12,000 to ₹15,000.
Primarily, high-grade ‘Teja’ variety chillies are seeing demand from Bangladesh and Mexico. Its price went up to ₹23,700 from ₹21,500 on July 9.
Similarly, well-known varieties on the market, such as ‘334’ and ‘Super-10’, are in high demand in Sri Lanka. However, because their stock levels are currently low, buyers are leaning towards the newly introduced ‘Topgun’ chilli variety as an alternative.
In the absence of adequate rains, the supply could remain constrained and prices could rise further.
(Edited by : Sriram Iyer)
