Chilli Market Heats Up With Growing Teja Variety Demand

Chilli markets have reopened after the summer break across India. The Guntur market, known for its stable prices, has witnessed Teja variety demand surge, particularly for export purposes. Let’s explore the recent chilli market trends, price stability, growing demand, and the market outlook.

Region-Wise Analysis

Let’s have a look at the regional chilli market performance.

1. Guntur

Here are the key updates:

• Stable Prices- The Guntur market has reported stable prices since its reopening. During June’s first week, prices remained steady across all varieties, reflecting prices in cold storage.
• Teja Chilli Rising Demand– Teja chillies have gained significant traction, especially for export to major countries like China, Thailand, and Singapore. Its prices experienced a gradual increase of Rs. 5-8 by the weekend and traded at Rs. 248 for super deluxe lots. Suprisingly, the stability continues this week as well, with prices noticing a minor change.

2. Khammam

Here are the market updates:

• Stable Prices- Khammam market chilli prices have remained stable for the past two weeks, fluctuating only by Rs. 2-3 around Rs. 245.
• Janda Paata– On 21 June 2023 the Janda Paata variety closed at Rs. 250, indicating a growing demand for Teja chillies in the market.

Spice & Food Companies Observations

Spice companies, as well as food and beverage companies, are closely monitoring the chilli market. Many have refrained from bulk buying at the moment since they stocked up during the peak season and stored supplies in cold storage facilities.

Non-Air-Conditioned Produce Influx

Despite the market stability, non-air-conditioned produce has flooded the markets. In Guntur, nearly 25,000 to 30,000 bags of non-AC arrivals have been reported, trading below Rs. 200 for every variety. However, the quality of these chillies is subpar, with smaller sizes and higher moisture content.

Market Outlook

The chilli market is likely to witness stable prices and growing Teja demand. Anticipation of a surge in market prices during the monsoon season is high, as spice companies join in bulk purchasing to meet their requirements.

OFB’s Insight

The chilli market is experiencing stability while witnessing a growing demand for the Teja variety. With the potential for price hikes in the off-season, farmers, traders, spice companies, and food and beverage companies are all keeping a keen eye on the market’s developments. The market’s rise extent remains uncertain, depending on factors such as weather conditions, demand-supply dynamics, and international trade.

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