The Mintec price for Indian Teja chilli sold at Guntur market has continued rising since our last report in September, up 9% m-o-m and 50% y-o-y. Similarly, prices have surged for other chilli varieties in India.
Prices had initially risen on the back of lower carry-over inventories, with the current cold storage stocks significantly down y-o-y in Telangana and Andhra Pradesh markets.
Some market participants expected prices to decline as the production area for the new season expanded from the last year but excessive rains since August, especially in central-western parts of the country, are believed to have negatively impacted the quality of the crop.
The harvest has already started for some early varieties, but the bulk of the crop will reach Indian markets early in 2020.