As against the production of 6.62 lakh tonnes last year, the production of chilli this year is expected to be around 5.39 lakh tonnes. Photo Courtesy: Rao GN
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Decline in chilli area, attack and wilting by thrips and increase in demand in international markets have led to a sharp rise in prices in Warangal and Khammam agricultural markets. Amidst low supply and high demand, products were also being lifted from the cold chain by traders.
There has been a sharp rise in prices in Warangal and Khammam market yards due to decline in chilli area, attack of thrips and wilting and increase in demand in international markets. Amidst low supply and high demand, products are also being lifted from the cold chain by traders.
After touching ₹22,000 per quintal last week, prices in the mandis are now hovering between ₹15,000-18,500, the highest level in three years.
“Though it touched around ₹22,000 a few days ago, chilli prices are around ₹15,000, though the high limit is going up to ₹18,500,” said B Rambabu, a farmer from Khammam. business Line.
excessive moisture
He attributed this increase to a significant decline in the area, which dropped from about 1.25 lakh acres to about 30,000 acres about five years ago.
Professor Jaishankar Telangana Agricultural University’s market intelligence unit sees “mixed sentiment” in the red chilli market during the last week of December due to quality concerns in the arrival of the new crop.
“Early arrivals from Andhra Pradesh and Telangana were affected by losses due to excess moisture and rains, leading to cautious buying. As a result, overall trade activity remained subdued,” the January 2026 Outlook report said.
“In the near term, the market is likely to remain range bound, with only gradual recovery expected. We expect chilli to trade in the price range of ₹13,500-15,500 per quintal in January 2026.”
optimistic outlook
Telangana Rythu Sangham leader S Malla Reddy said chilli crop could reach 4 lakh tonnes this year, while the average annual production is 6.50 lakh tonnes.
Andhra Pradesh Agriculture Minister Kinjarapu Atchannaidu recently said the price situation looks optimistic this season due to strong demand. The state also witnessed a huge decline in area. The area of chilli has decreased to 1.06 lakh acres from 1.96 lakh acres last year.
As against last year’s production of 6.62 lakh tonnes, production is expected to be around 5.39 lakh tonnes this year.
Published on January 26, 2026
