Now Reading: Chilli prices soar in Telangana as acreage and yield fall
-
01
Chilli prices soar in Telangana as acreage and yield fall
The Story in Brief
Prices of dry red chilli have shot up in Telangana's wholesale markets as cultivation area and yield drop. At the Khammam market, AC red chilli touched ₹23,150 per quintal on 28 October, up from ₹21,300 a week ago, non-AC varieties fetched ₹16,300 per quintal. Traders say the price is likely to rise further after Diwali.
Area under chilli in Khammam district has fallen sharply, from 69,808 acres in 2022 to 29,433 acres in 2026. Only 18,626 farmers are now growing chilli. Adverse weather, including Super El Nino and unseasonal rains, threatens standing crops. Some 7.4 lakh bags are held in cold storage as farmers wait for better prices. A China-based spice processor, Chenguang Biotech, is buying large quantities from the Khammam market.
Indian Opinion Analysis
The price jump from ₹21,300 to ₹23,150 a quintal in a week for AC teja chilli is already hitting wholesale costs. What the source leaves unresolved is how much of the 7.4 lakh stored bags will reach consumers before Diwali, when a further hike is expected. Shrinking cultivation, from 69,808 acres in 2022 to 29,433 acres in 2026, and weather damage to standing crops point to lower production this season. The next step is the post-Diwali market, where reduced supply and steady factory purchases by Chenguang Biotech could push prices higher still.
Source: deccanchronicle.com
This brief was synthesised by AI from the source linked above. Methodology and corrections.
