Hubballi Witnesses Sharp Spike in Dry Red Chilli Prices Amid Supply Constraints
In a significant market development, dry red chilli prices in Hubballi have experienced a dramatic increase this season, primarily driven by a reduction in cultivated area and overall output. Market rates have now crossed the Rs 70,000 per quintal mark, representing a steep rise from approximately Rs 45,000 during the previous year. This surge is largely attributed to limited availability in the market, which has tightened supply and pushed prices northwards.
Production Decline and Cultivation Data
During the current year, dry red chilli was cultivated across 79,152 hectares, resulting in a total production of 1.58 lakh metric tonnes. Notably, about 10% of this output comprised Byadagi red chilli, a variety renowned for its vibrant colour and high demand among traders and suppliers. With production levels lower than in recent years, traders and buyers have been competing for limited stocks, further contributing to the price escalation.
BR Girish, the managing director of the Karnataka Spices Development Board, highlighted that production has declined significantly this year. Comparative data reveals:
- In 2024-25, dry red chilli production was reported at 219,670 tonnes.
- In 2023-24, production was higher at 320,495 tonnes.
- In 2022-23, the state recorded 171,134 tonnes.
In this context, the current year's production of 1.58 lakh tonnes is lower than most recent seasons, triggering a supply shortage that has intensified market pressures.
Upcoming Dry Chilli Mela and Market Initiatives
In response to these market dynamics, the Karnataka State Spices Development Board will organise the 14th Dry Chilli Mela from February 6 to 8 on the premises of Moorusavira Math High School. This event aims to:
- Encourage direct sales of dried chillies.
- Provide direct connectivity between chilli growers and consumers.
- Bring chilli growers, consumers, and scientists together on a single platform.
- Offer growers the latest research information on dry chilli cultivation.
Karnataka's Role in Dry Chilli Cultivation
Karnataka remains a major state for the cultivation of dry chillies, with districts such as Ballari, Raichur, Bagalkot, and Dharwad being prominent in dry red chilli production. These regions currently have large areas under cultivation, underscoring the state's critical role in the national spices market. The ongoing price trends and production challenges highlight the need for strategic interventions to stabilise supply and support farmers in this vital agricultural sector.
