Robust demand from China and Bangladesh has pushed up Indian red chilli exports to a record $1.509 billion in FY23-24, an increase of 15 per cent over the previous year. In 2022-23, chilli exports stood at $1.30 billion. In rupee terms, chilli exports during 2023-24 stood at ₹12,492 crore, registering a growth of 18 per cent over the previous year’s ₹10,564 crore.”
As per the Spices Board data, chilli exports during 2023-24 were up 15 per cent in volume at 6.01 lakh tonnes, over the previous year’s 5.24 lakh tonnes. Chilli exports of $1.50 billion accounted for about 34 per cent of India’s total spices exports during 2023-24, estimated at $4.46 billion.
China was the biggest buyer of Indian chillies during 2023-24, with shipments exceeding 1.79 lakh tonnes valued at over ₹4,123 crore. Compared to the previous year, chilli shipments to China were up 14 per cent in volume and about 21 per cent in rupee value terms. In 2022-23, China had imported over 1.57 lakh tonnes of Indian red chillies worth ₹3,408 crore.
In fact, after touching a record volume of 1.91 lakh tonnes during 2021-22, China’s chilli imports from India dropped to 1.57 lakh tonnes during 2022-23. However, during 2023-24, red chilli shipments to China rebounded due to growing demand from both the oleoresin and the food and culinary sectors. China buys mainly the Teja variety for oleoresin extraction.
Exports to Thailand, the second-largest buyer of Indian chillies in value terms, increased to ₹1,404 crore, up 10.6 per cent from the previous year’s ₹1,269 crore. In volume terms, chilli exports during 2023-24 were up by about a tenth at 59,838 tonnes from the previous year’s 54,512 tonnes.
Shipments to neighbouring Bangladesh rose by a whopping 67 per cent during 2023-24 to about 90,570 tonnes from the previous year’s 53,986 tonnes. In value terms, chilli exports to Bangladesh were up 35 per cent at ₹1,210 crore from the previous year’s ₹892 crore.
Also, chilli exports to the USA were up by a fourth at 36,413 tonnes from the previous year’s 29,173 tonnes. In value terms, chilli exports to the USA were up 42 per cent at ₹1,141 crore from the previous year’s ₹803 crore.
Chilli is a major commercial cash crop grown by farmers across the country, and the production of both green and red varieties is on the rise. Andhra is the largest producer of red chillies, followed by Telangana, Madhya Pradesh, and Karnataka.