In this Issue

Celebrating a significant milestone, this edition commemorates five years of our Q-AgriPulse Chilli Panel syndicate research. Originating in 2019 with 1000 chilli farmers spanning 10 districts across India, our panel reached its five-year mark in Kharif 2023.

We extend our deepest gratitude to all our clients and partners whose unwavering support has fueled our journey. This newsletter serves as a heartfelt token of appreciation, offering insights into key trends observed among chilli farmers over the past five years.

Overview of the Chilli Market

India is the world’s largest producer, consumer and exporter of spices, the country produces about 75 of the 109 varieties and accounts for half of the global trading in spices.

Despite the COVID-19 pandemic, the export of spices from India in 2020-21 touched USD $4 billion mark attaining an all -time high, recording a 30% increase in volume, 23% increase in rupee terms and 17% in dollar terms compared to the previous year.

Chilli holds the lion’s share of spice export from India, amounting to $1.50 billion which accounts for about 34 per cent of India’s total spices exports during 2023-24. Andhra Pradesh was the largest producer of chillies in the fiscal year 2023 among other states across India. The production volume amounted to over 627 thousand metric tons that year. This was followed by Telangana and Madhya Pradesh. India produced about two million metric tons of chili during that year.

Key trends in the crop protection category

 

 

Kharif 2023 was a year which saw high incidence of all major sucking insects. However a drop was seen in lepidopteran pest incidence. Thrips, Black Thrips and Whitefly incidence was reported by over 90% of the chilli growers in the 50-130 DAT window.

Black thrips continues to be a concern for farmers with growers spending approx. INR 7500-8000/acre in a season for its control. Currently high value G30 molecules viz Broflanilide, Fluxametamide, Tolfenpyrad are majorly used. In addition, Cyantraniliprole, Spinetoram, Fipronil are also used.

Thrips continues to be a concern to the chilli growers. Molecules like Fipronil and its combination, Cyantraniliprole, Spinetoram, Monocrotophos, Broflanilide are commonly used. At present farmer is spending INR 5500-5800/acre on its control

Despite the rise in insect incidence, the overall insecticide applications declined, especially in Andhra Pradesh. Farmers, anticipating poor yields due to adverse weather conditions and high infestation levels, were reluctant to invest in crop protection, leading to reduced applications during the later stages of the season.

On an average growers are making 4 applications of Fungicides and AP saw  a decline in fungicide usage, where major molecules Carbendazim +Mancozeb and combinations of Azoxystrobin saw a decline in PAT share.  The per acre spend on fungicides is approx.is INR 2200-2600/-

PGR and Biostimulants saw an increase of 15% by application number. The key driver here being protection of the plant health or to prevent flower drop or better fruit quality which could be due to higher incidence of insects this year, especially Black thrips impacting the 80-130 DAT period.

The Economics Of Chilli Cultivation

Over the past five years, chilli farmers have observed a consistent uptrend in the cost of cultivating chilli, with overall expenditure registering a robust 5.4% CAGR

Chilli, once considered a cash crop, has not been profitable for growers in recent years. Over the past five years, profitability from chilli cultivation has generally declined, with the most significant drop occurring in 2021. The primary reasons for this decline include the emergence of the invasive pest “Black Thrip,” a rise in other insect infestations, and unseasonal rains. These factors have collectively reduced yields by 8-9% annually.

Kharif 2023 too, was tough for chilli growers. Unseasonal rains and high insect infestations reduced both yield and quality. As a result, prices fell by 10-15% due to lower demand from traders, who blamed the poor quality of the crop.

The data of cultivation costs collected over a 5 year period reveals that chilli growers are incrementally spending 7.5% higher each year on crop protection products.

Digitalization of Chilli farming

 

 

The penetration (i.e. access to) of smartphones among chilli farmers has surged impressively, catapulting from 52% in 2019 to a remarkable 90% in 2023, reflecting an astounding 11. 6% CAGR.

AP and Telangana are the top 2 states with higher smartphone accessibility amongst chilli farmers.

Surge in usage for digital payment apps like Paytm, BHIM, Google Pay etc. and  strong growth seen from 4% in 2019 to 49% in 2023.

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WHAT NEXT??

The detailed chilli report including Kharif 2023 data and past trends is now available. Read more to deep dive into pest incidence, brand shares and movements, detailed farmer ROI and profitability and more.

Companies mentioned in the report