The Mintec price of Indian Byadgi chilli in the Guntur market, India, rose 21% in the four-week period to 6th July, at INR 26,000/100kg (USD 329/100kg), the highest level since Mintec started tracking these prices in 2011. The benchmark has increased by 58% year-on-year.
Recently, prices have been supported by solid domestic and global export demand, mainly from Bangladesh, Indonesia and Malaysia, according to sources in India. Expectations of a lower harvest continues to provide the market with a bullish impetus.
The 2022 chilli harvest in India has been hampered by adverse weather and pest damage in India’s key growing states, following heavy rains during the Northeast Monsoon in the second half of November and the first half of December 2021. Consequently, some market sources expect a substantial decline in production, despite an increase in planted area. Quality of the crop has been compromised as well, according to market sources.
Cold storage stocks of high-quality chilli are low compared to a typical year. According to India-based agri-company Agriwatch, cold storage stocks in the benchmark Guntur market are below last year’s levels. Cold storage chilli stocks in Andhra Pradesh have reportedly fallen by 23% y-o-y.