In FY24, Indian red chilli exports hit a record $1.5 billion, driven by robust demand from China and Bangladesh. With a 15% increase in volume and an 18% rise in value, India emerges as a key player in the global spice trade, particularly catering to the preferences of major markets like China, Thailand, Bangladesh, and the USA.
Highlights
Record Red Chilli Exports in FY24: Indian red chilli exports reached a record $1.509 billion in FY24, a 15% increase from the previous year’s $1.30 billion. In rupee terms, exports totaled ₹12,492 crore, an 18% growth over ₹10,564 crore in FY23. The significant rise was driven by robust demand from China and Bangladesh.
Volume and Value Surge in Exports: According to Spices Board data, red chilli export volume increased by 15% in FY24 to 6.01 lakh tonnes from 5.24 lakh tonnes the previous year. Red chilli exports, worth $1.50 billion, comprised about 34% of India’s total spices exports, which were valued at $4.46 billion in FY24.
China: The Largest Buyer: China was the top importer of Indian red chillies in FY24, purchasing over 1.79 lakh tonnes valued at ₹4,123 crore. This represents a 14% increase in volume and a 21% increase in value from FY23’s 1.57 lakh tonnes worth ₹3,408 crore. China’s imports rebounded due to growing demand in oleoresin and culinary sectors.
Thailand’s Rising Demand: Thailand emerged as the second-largest buyer of Indian chillies by value in FY24, with imports valued at ₹1,404 crore, a 10.6% increase from ₹1,269 crore the previous year. Volume-wise, exports to Thailand grew by about 10% to 59,838 tonnes, up from 54,512 tonnes in FY23.
Significant Growth in Exports to Bangladesh: Chilli exports to Bangladesh surged by 67% in FY24, reaching 90,570 tonnes, up from 53,986 tonnes the previous year. In value terms, exports to Bangladesh increased by 35% to ₹1,210 crore, compared to ₹892 crore in FY23. This marked a significant rise in both volume and value.
Increased Shipments to the USA: Exports to the USA also saw substantial growth in FY24, with a 24% increase in volume to 36,413 tonnes from 29,173 tonnes in FY23. In value terms, chilli exports to the USA rose by 42% to ₹1,141 crore, compared to ₹803 crore the previous year, highlighting the increasing demand.
Major Producing States: Red chillies are a major commercial cash crop in India, with increasing production of both green and red varieties. Andhra Pradesh is the largest producer of red chillies, followed by Telangana, Madhya Pradesh, and Karnataka. This rise in production has contributed to the significant growth in exports.
Conclusion
In conclusion, India’s red chilli exports have reached unprecedented heights in FY24, fueled by escalating demand from key importing nations. The surge in exports, especially to China and Bangladesh, reflects the growing recognition and preference for Indian spices worldwide. With consistent efforts to enhance production and quality, coupled with strategic market positioning, India is poised to maintain its dominance in the global spice market, contributing significantly to the country’s economic growth and agricultural prosperity. AGENCIES
