W10 Chili Pepper Update: Rising Costs and Falling Prices Drive Shift to Hybrid Pepper Cultivation in Bangladesh, Red Chili Markets Surged in Indonesia Ahead of Ramadan

Published 2024년 3월 15일

In W10 in the chili pepper landscape, farmers in Sariakandi Upazila, Bangladesh, are increasingly favoring hybrid pepper cultivation over native red pepper varieties due to higher profitability, leading to a decline in indigenous red pepper cultivation. Despite historically favorable conditions for red pepper production, rising production costs and dropping prices have impacted profitability. In contrast, hybrid pepper cultivation benefits from favorable market prices and good yields. Similarly, in Sonatala, Bogra, the cultivation of Jamuna Char's Red Pepper in pastures after floods has compensated for losses during the wild season, contributing to fulfilling the country's demand for dry chilies. Lastly, in Karnataka, India, red chili prices surged due to limited supply and decreased procurement prices caused by a surplus in production, respectively.

Hybrid Pepper Cultivation Gained Momentum in Sariakandi, Bangladesh

Farmers in Sariakandi Upazila, Bangladesh, are increasingly opting for hybrid pepper cultivation due to its higher profitability than indigenous red pepper varieties, leading to a decline in the cultivation of native red pepper. Despite Sariakandi's historical reputation for indigenous red pepper production, favoring its sandy loam soil and proximity to the Yamuna and Bengali rivers, rising production costs, including increased commodity prices, labor expenses, and transportation costs, have impacted profitability. Moreover, red pepper prices have dropped from over USD 27.34 per 37.32 kilograms (kg) in 2023 to just over USD 18.23/37.32 kg in 2024. Nevertheless, farmers benefit from pepper cultivation due to favorable market prices and good yields.

According to the Sariakandi Upazila Agriculture Office, the target for pepper cultivation this year was 3.30 thousand hectares (ha), but production has exceeded expectations, covering 3.31 thousand ha. Of this, 2.15 thousand ha were dedicated to hybrid varieties, while 1.16 thousand ha were for native Ufsi variety cultivation. The average production is 3 metric tons (mt) per ha. Comparatively, last year saw 3.15 thousand ha cultivated for chilies.

Jamuna Char's Red Pepper Fulfills Bangladesh's Dry Chili Demand

The Jamuna Char's red pepper of Sonatala Upazila, Bangladesh, is fulfilling the demand for dry chilies across the country. Following the flood, the cultivation of pepper in the pastures that emerged afterward helped compensate for some losses incurred during the wild season. Known for their fertility, these pastures are suitable for growing pepper, corn, almonds, jute, and other cash crops. In 2024, there is a potential for selling ripe red chilies worth approximately 6.5 crore rupees. According to the Agriculture Department, pepper cultivation has been carried out on 910 ha of land in the upazila, including Charanchal. Farmers are showing increased interest in cultivating hybrid pepper varieties alongside local ones, reflecting a diversification trend in pepper cultivation. Sun-drying 100 maunds of red chilies takes about 12 to 15 days, resulting in 25 maunds of dried chilies.

Red Chili Prices Surged in Ambon City Ahead of Ramadan

Red chili prices at Mardika Market in Ambon City, Indonesia, have risen ahead of Ramadan. Curly chilies (Cabai Keriting) increased from USD 1.60 to 4.17/kg compared to Feb-23. According to a seller at Mardika Market, the price surge is due to limited supply in the Ambon City market. Similarly, the price of Bird's eye chili (Cabai Rawit) has doubled from USD 1.28 to 2.57/kg since last Feb-23.

Indian Farmers Disappointed by Sudden Drop in Chili Prices

Hundreds of farmers from Karnataka, Andhra Pradesh, and Telangana, India, expressed frustration over a sudden 10% decrease in chili procurement prices at the Byadagi wholesale agricultural market in Haveri district, Karnataka. Aprominent chili trade hub in central Karnataka, Byadagi is located approximately 310 kilometers (km) from Bengaluru. The price drop was due to a surplus in production, with the cost of 100 kg of Byadagi variety chili decreasing from USD 518.93 to 470.65 within a week. Convening twice a week to set prices, the market faced challenges due to an overwhelming arrival of 350 thousand bags, each containing 50 kg of chili, surpassing the capacity of approximately 40 privately managed cold-storage units.