Imp Comm Mkts > Chillies Control

Chillies belong to the genus capsicum, under the Solanaceae family and are believed to have originated from South America. It is also called as hot pepper, red pepper, cayenne pepper, capsicum, etc. Most of the cultivated varieties in India belong to the species Capsicum annum Chillies are valued principally for their high pungency and colour. Chilies are used in different forms, green chillies, dried red chilies as whole and in powdered form as well for spicing various cuisines. It is estimated that around 25-30% of the chilly crop is used for powder preparation, with the branded chilly powder manufacturers accounting for around 5% of the total volume. Climate and cultivation Chillies can be grown during the entire year at one or the other part of the country. However, the major arrival season extends from February to April. The crop planting starts from August and extends till October. While, the harvesting begins from December and extends to February-March . There are several varieties of chilli cultivated in India. The most popular among these are, Sannam, LC 334, Byadgi, Wonder Hot, Jwala etc. World Scenario Chilli is produced all over the world and the total world production of chilli crop sums up to around 7 million tons that is cultivated on approximately 1.5 million hectares of land. India is the world leader in chilli production followed by China and Pakistan major consumers • • • • • •

China Mexico Thailand United States of America United Kingdom Germany

• Sweden World trade in chillies account to an approximate of 16% in the total spice trade in the world. This share places chilli on the second position after black pepper in the world trade. Major importers: • • • • •

United Arab Emirates European Union Sri Lanka Malaysia Japan

•

Korea

Indian Scenario India is the world's largest producer, consumer and exporter of chillies in the world having the largest area under chill cultivations in the world. With production hovering around 1.1 million tones annually, it is estimated that India produced 1,060,345 tons of dry chilli from an area of 884,183 hectares in 2003-04. India is the largest consumer of chilli in the world. Around 90% of India's production is consumed within the country. Chilli is cultivated in almost all the states in India, with Andhra Pradesh being the largest producer with a 46% share, Karnataka (15%). The major chilli producing states in India namely Andhra Pradesh, Karnataka, Maharashtra, Orissa, Rajasthan and Tamil Nadu contribute to around 86% of total area for the chilli crop cultivation in the country and 90% of the total Indian produce. The major chilly growing districts of Andhra Pradesh are Guntur, Warangal, Khammam, Krishna and Prakasham. Trade Exports of chillies sum up to around 100,000 tons, which makes 33% of the total spices exported from the country. The total quantity exported during 2003-04 was 86,575 tons worth Rs.366.8 crores (US $ 79.95. 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, Germany Major spot markets Andhra Pradesh : Guntur, Warangal, Hindpur, Khammam. Guntur is Asia's largest market for chillies Karnataka : Raichur, Bellary in Chilli is traded in the commodity futures exchanges namely o National Commodity and Derivatives Exchange of India ltd and

o

Multi Commodity Exchange of India ltd

Factors to be considered while Trading • • •

Carry over stocks: leftover stocks from the previous year’s production after meeting the demand. Expected demand: average level of consumption and exports during the past few years Crop acreage: Extent of area sown under the crop

• •

Production: Estimated output based on the acreage and weather conditions and pest infestation etc., Imports and exports: in case of pulses, the traders need to know the details of important sources and destinations of the external trade. Further, the traders need to monitor the crop status in the respective countries

•

Government policies: any change in government policy relating to the crops Region/District-wise Area and Production of Chillies in Andhra Pradesh (1998-1999 to 2004-2005) (Area in Hec. & Production in M.Ts.) 1998-99

1999-00 Prod-

Region

Area

2000-01 Prod-

2001-02 Prod-

District

Area

uction

Area

uction

Area

uction

Area

Srikakulam

3539

7411

3249

6498

3060

6325

2852

3392

7395

3223

6446

2713

5809

2569

5552

10693

4931

9862

4946

11553

4672

2131

5573

1825

3650

1407

3508

1564

Vijaya Nagaram Vishakhapatnam East Godawari West Godawari

5723

10735

4488

8976

5110

7566

4298

Krishna

12213

40232

12985

25970

10939

34115

11208

Guntur

36880

131427

59256

118512

50958

149335

51567

Prakasam

18895

35596

25519

51038

20990

40168

18267

3281

9260

3652

7304

2520

7911

1996

Nellore Coastal

Total

91606

258322

119128

238256

102643

266290

98993

Rayala-

Chittoor

3780

5032

3370

6740

3199

3826

3401

seema

Cuddapa

5046

7658

6246

12492

5046

7350

5465

4154

10171

5199

10398

3825

10227

3873

Karnool

10839

12670

13207

26414

13341

14999

14984

Total

23819

35531

28022

56044

25412

36402

27723

11622

16617

14251

28502

12041

15761

10923

2941

3420

3621

7242

3102

6298

2976

0

0

0

0

0

0

0

Medak

9961

8796

10045

20090

8413

9953

7786

Nizamabad

2821

6202

2931

5862

2700

5715

2648

Adilabad

6671

4997

8980

17960

10106

9009

6528

Nagar

12010

22711

12036

24072

11963

26577

9313

Warangal

30605

71444

33088

66176

28672

68014

27538

Khamam

20667

61864

25372

50744

23692

70877

22095

Nalgonda

9834

35506

10315

20630

9258

11268

8305

107132

231557

120639

241278

109947

223474

98112

Anatapuram Andhra Region Telan-

Telan-

Mehaboob

gana Region

gana

Nagar Ranga Reddy Hyderabad

Karim

Total

Andhra Pradesh

222557

525410

267789

535578

Source : Department of Horticulture, Govt. of Andhra Pradesh.

238002

526166

224828