-  The total area under red chilli has fallen by nearly 30 percent in 2024–25

-  In Khammam alone, the area under chilli cultivation has declined from 92,206 acres in 2023–24 to just 59,025 acres this season

- State-wide, the chilli crop now covers 1.54 lakh hectares, compared to 1.59 lakh hectares last year

Metro India News | Hyderabad 

Chilli cultivation in Telangana has declined sharply this season, driven by a combination of crashing prices, weak demand, and high input costs. The total area under red chilli has fallen by nearly 30 percent in 2024–25 compared to the previous year, with many farmers opting for alternative crops like cotton, maize, and oil palm to avoid further financial distress.

Major chilli-growing districts such as Khammam, Mahabubabad, and Gadwal have reported significant reductions in acreage. In Khammam alone, the area under chilli cultivation has declined from 92,206 acres in 2023–24 to just 59,025 acres this season—marking a steep 36 percent drop. State-wide, the chilli crop now covers 1.54 lakh hectares, compared to 1.59 lakh hectares last year.

District Horticulture Officer Anantha Reddy from Nalgonda highlighted the ripple effect on seed and nursery markets. “Earlier, a 10g hybrid seed packet sold for Rs 1,000. Now, even at Rs 500, there are no buyers,” he said. “Only 20 percent of seed shops have reported any sales.” Telangana, once a hub for virus-resistant chilli seed varieties, is witnessing a major slowdown.

“A nursery that sold 16 lakh saplings last year has sold just 1 lakh this season,” he added. Reddy warned that basing cultivation decisions only on last season’s price trends is unsustainable and could lead to long-term disruptions.

The collapse in chilli prices has severely affected farmers. According to the Agricultural Market Intelligence Centre at PJTSAU, prices that once peaked at Rs 25,000 per quintal dropped to around Rs 10,000 last season. Facing urgent financial needs, many farmers sold their produce early at these low rates.

Jagan Naik, a farmer from Nalgonda, shared his struggle. “I cultivated chilli on 10 acres and harvested nearly 20 tonnes. But instead of making a profit, I suffered a Rs 6 lakh loss. Most farmers in my area are facing the same. No one wants to grow chilli again under these conditions,” he said.

Meanwhile, cold storages are overflowing. Out of the 3.5 crore chilli bags stored across India by May 2025, only 1 crore have been sold. The remaining 2.5 crore include 40 lakh from the previous year and over 2 crore medium-grade bags. In Warangal alone, around 8.5 lakh bags remain unsold.

Despite expectations, exports haven’t revived the market due to weak demand from China and Thailand. While larger farmers in places like Bellary are holding stock and waiting for price recovery, small farmers who sold early remain the worst hit.

Chilli growers across Telangana now face a deepening cycle of uncertainty and loss.