India is experiencing a surge in chilli prices due to crop failures caused by heavy rain and a high domestic demand, leading to a chilli shortage. Despite reduced demand from China, prices were up by 50% year-on-year in September. Excess rainfall last year caused widespread pest attacks, resulting in a decrease in chilli output. India was the top producer of dry chillies in 2020, producing over 17 lakh tonnes, followed by Thailand and China. Retail inflation for farm and rural workers eased slightly in October, with food inflation at 7.05% and 7%.