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Market and Export Potential 

Market and Export Potential 

Indian chilli market
Though chillies were introduced to India very late after they were discovered, the delay couldn’t lessen this country’s love for this so popular flavoring agent. Indians adopted chillies ever since it was brought into the country and it became an integral part of the Indian culture. Till today many superstitions are related with chillies and it is hanged up at the door with a few lemons as it is considered that this act will guard the house from the evil. 

Currently, chillies are produced through the length and breadth of the country making the most dominating player in the world market. India produces the maximum amount of chillies in the world figuring up to around 11 lakh tons and is also the leading country in context of area covered in chilli production. This crop is cultivated in almost all the states of the country, Andhra Pradesh being the leader of all. It contributes to approximately 25% of the total production. The varieties of chilli produced by India are Sannam, LC 334, Byadgi, Wonder Hot, Jwala etc. 

India is also the largest consumer and exporter of this crop. It consumes around 6.2 million tons of chillies i.e. about 90% of the total produce of the country. The demand from the chilli powder-producing sector constitutes to 30% of the total production in the country. Exports of chillies sum up to around 100000 tons, which makes 33% of the total spices exported from the country. The Indian exports in 2003-04 were valued at 366.80 crores. Chilli powder, dried chillies, pickled chillies and chilli oleoresins are some of the forms in which this crop is exported. The major importers of chillies from India are United States of America, Sri Lanka, Bangladesh, Nepal, Mexico, Canada, United Kingdom, Saudi Arabia, Singapore, Malaysia and Germany 

Though Indian exports are showing satisfactory trends, nowadays India is facing a very tough competition in the international export market as price of the Indian chilli powder is considered too high for the market and other competitive countries are providing chilli at very competitive rates to the major importing countries. If the country is able to meet the strict quality demands of the international market, the exports can be further improved. Steps have to be taken by the government encouraging the exporters to maintain the Indian dominance in the world market.


Market Influencing Factors

  • Seasonal price fluctuations
  • Overall production in the country
  • World demand
  • Stock available in cold storages
  • Hedging among the various varieties of chilli.

Major trading centers of chilli 
The major trading centers of chilli and chilli powder in India are

  • Guntur –largest chilli market in the world (Andhra Pradesh)
  • Warangal (Andhra Pradesh)
  • Khammam (Andhra Pradesh)
  • Hindpur (Andhra Pradesh)
  • Raichur (Karnataka)
  • Bellary (Karnataka)
  • Unjha (Gujarat)
  • Chennai
  • Kolkata
  • Mumbai
  • Delhi
  • Ahmedabad
  • Nagpur