Chilli prices in India have risen rapidly since the last week of November following reports of rain and pest damage in India’s key growing states. Heavy rainfall in the second half of November and the first half of December in key growing districts of Andhra Pradesh, Telangana, and Karnataka damaged a large proportion of the chilli crop, according to market sources in India.
Some places in India received more than 300% of normal precipitation between 1st October and 21st December, according to data from India Meteorological Department. The major chilli producing states of Andhra Pradesh and Karnataka received 41% and 106% more rain during the period than in a typical year. Telangana shows a rain deficit of 23% during the period; however, it has come on the back of below-average rainfall between the start of October and the first half of November. Most districts in Telangana also recorded excess rainfall in the second half of November.
In addition to excess precipitation, farmers in Telangana and Andhra Pradesh are reporting pest damage on flowering plants, which is expected to further hinder the chilli output, posing an upside risk to prices.
Small quantities of the newly harvested crop have already started arriving at trading centers, but the quality has so far been poor, according to market sources.
The Mintec price of Byadgi chilli in Guntur rose by 35% in the four-week period to 15th December, to INR 20,200/100kg. Similarly, other chilli varieties have also gone up in price in the Guntur market over the past month; Fatki by 27.5%, no. 273 by 25% and Teja by 16%.