Hyderabad: Chilli prices surged sharply after the Sankranti festival, with rates crossing Rs 23,000 per quintal amid strong demand and reduced arrivals from other states.
Traders said the rise in chilli prices followed a combination of falling production outside the state and the beginning of the pickle-making season. Demand increased sharply for chillies used in chilli powder and pickle processing, pushing prices upward across major markets.
In markets such as Warangal and Malakpet, as well as at the Guntur chilli yard, prices of popular varieties like 341 and Devanur Deluxe recorded a steep rise. The Devanur Deluxe variety alone saw an increase of more than Rs 4,000 per quintal within weeks.
Chilli prices climb as yields drop and arrivals fall
According to traders, the supply of chillies to the Guntur chilli yard declined significantly over the past month due to lower yields in Andhra Pradesh and Telangana during the vegetable season. As a result, varieties such as 341, 334, 355 and No. 5 began competing with Deluxe chillies in pricing.
On January 6, these varieties were trading at around Rs 20,500 per quintal. Since then, prices climbed steadily to touch Rs 23,000 per quintal. Traders attributed the surge to strong demand from chilli mills and pickle manufacturers, coupled with limited availability.
Some traders were also reported to be holding stocks in anticipation of further gains. Meanwhile, farmers expressed relief and satisfaction as chilli prices, which had remained depressed for a long period, finally showed a strong upward trend.