Low yield, high global demand push up chilli prices to three-year high

Due to high demand in the international market and low availability of local produce, red chilli prices have shot up to record highs in Tirupati and Nellore districts.

Published: 26th July 2022 05:24 AM  |   Last Updated: 26th July 2022 05:24 AM   |  A+A-

Image used for representation. | Express

Express News Service

NELLORE: Due to high demand in the international market and low availability of local produce, red chilli prices have shot up to record highs in Tirupati and Nellore districts. Unseasonal rains in October-November last year and subsequent pest attack severely damaged the yield at many places. Low yield at major producer districts have been pushing up the prices, which are likely to stay high throughout the year. Meanwhile, overseas buyers have also been approaching local chilli traders. In July, the Teja variety was being sold for Rs 25,000 per one quintal against Rs 19,000 in May this year, at the wholesale open market. This is the highest price the crop has fetched in three years.

Anticipating a further rise in prices, farmers have been storing the harvested red chilli in cold storages. Red chilli is cultivated in nearly 3,000 hectares in both the districts. Similarly, other varieties are also witnessing a similar trend. A quintal of a medium variety is now worth more than Rs 23,000 from Rs 18,000-19,000 earlier.

“Usually, cultivation of red chilli begins in August, and harvesting at the end of December. The crop was damaged due to heavy rains at the end of last year. Pests caused early shedding of flowers, which also impacted the yield,” said K Sukumar Reddy, a farmer from Nellore.  

According to reports, almost 55-60 percent of the chilli crops were damaged this year. “The yield was less this year, resulting in its prices crossing Rs 20,000 per quintal. Earlier, they never crossed Rs 10,000. A majority of the crops in Guntur were damaged due to pest attack,” said Chirasani Koti Reddy, state secretary of the Consortium of Indian Farmers’ Association.



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