Dried Red Chilli

India is the world's largest producer, consumer and exporter of Dried Red Chilli in the world. India also has the largest area under Dried Red Chilli in the world. Dried Red Chilli is the most common spice cultivated in India. It is estimated that India produced 1060345 tons of Dried Red Chilli from an area of 8, 84,183 hectares in 2003-04. Dried Red Chilli is valued principally for its high pungency and color. Almost all the states of India produce the Dried Red Chilli. The Indian Dried Red Chilli growing states are Andhra Pradesh (46%), Karnataka (15%), Maharashtra, Madhya Pradesh, Orissa, West Bengal, Rajasthan and Tamil Nadu. Indian Dried Red Chilli 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 with 5% of the arrivals usually reported in this month. The peak arrivals are reported in February to March. There are several varieties of Indian Dried Red Chilli and the most popular among these are Sannam, 334, 273, Byadgi, Wonder Hot, Mundu, Teja, Yellow Chilies & Tomato Chilies. Factors Influencing Dried Red Chilli Markets

• The Dried Red Chilli displays high volatility, with the prices heavily dependent on season, production in different producing tracts spread across the country, demand from exporters and the stock available at the cold storages.
• The prices of the major Dried Red Chilli varieties sold in the country are correlated with each other. As a result, the players in other varieties can also hedge their risks through this single variety.