VIJAYAWADA: Andhra Pradesh exported 2.96 lakh metric tonnes of chilli and chilli products valued at $551.27 million in the 2025–26 financial year, according to data tabled in the Lok Sabha on Tuesday by Union Minister of State for Commerce and Industry Jitin Prasada.
Despite strong global demand, farmers at the production level in the State continue to face delayed crop insurance payouts and extreme weather disruptions.
Data provided by the Spices Board shows that chilli export quantities from Andhra Pradesh have steadily increased over the last five years from 2.40 lakh metric tonnes in21–22, with export valuations peaking at $736.96 million in 2023–24.
China remains the single largest market for Andhra chilli, accounting for 30% of total State exports in 2025–26, followed by Bangladesh (15%), Thailand (15%), Sri Lanka (12%), Indonesia (6%), Malaysia (6%), and the USA (3%).
To enforce international quality and safety compliance, the Spices Board operates a dedicated Quality Evaluation Laboratory (QEL) and Spices Park at Guntur, alongside branch offices in Paderu.
Between 2021–22 and 2025–26, the Guntur laboratory evaluated 43,415 export samples for toxins, chemical residues, and contaminants out of 2.95 lakh samples analysed nationwide. The Board has registered 373 exporters from Andhra Pradesh and provided Rs 128.40 lakh in financial assistance during 2025–26 under the SPICED scheme to upgrade processing infrastructure, testing facilities, and post-harvest mechanisation.
In contrast to the buoyant trade numbers, State growers face persistent challenges with crop insurance claim settlements.
In a separate written reply, Minister of State for Agriculture Ramnath Thakur revealed that pending insurance claims in Andhra Pradesh under the Pradhan Mantri Fasal Bima Yojana (PMFBY) and Restructured Weather-Based Crop Insurance Scheme (RWBCIS) have accumulated to Rs 2,817.86 crore between 2022–23 and 2025–26.
The bulk of unpaid claims is concentrated in 2023–24 (Rs 2,038.52 crore) and 2024–25 (Rs 714.41 crore). The Agriculture Ministry attributed the delays to unpaid State subsidy matching shares, unverified bank details, and yield data discrepancies between state authorities and insurance companies.
Red chilli is among the key horticultural crops officially notified for insurance coverage across both Kharif and Rabi seasons in AP. The State’s agricultural sector also suffered notable physical damage due to natural calamities in recent seasons. The Andhra Pradesh government assessed crop loss across 15,860.83 hectares during Kharif 2024 and Rabi 2024–25 caused by heavy rains, floods, hailstorms, and Cyclone Fengal. Input subsidies totalling Rs 44.62 crore have been disbursed to 28,290 affected farmers covering 14,460.86 hectares.
AP was allocated Rs 1,380.80 crore under the State Disaster Response Fund (SDRF) for 2024–25 (including a Rs 1,036 crore Central share), along with Rs 56.895 crore released from the National Disaster Response Fund (NDRF).
The State holds an unspent balance of Rs 2,085.85 crore under SDRF, while an allocation of Rs 6,533 crore has been earmarked for the State for the 2026–27 to 2030–31 period under the 16th Finance Commission.
