Low local production keeps green chilli prices high despite import

Even after green chilli imports started a week ago, its prices are yet to decline due to a reduced local production caused by floods last June that damaged chilli fields, and also because of excess drought and insect infestation, said agriculture officials.

"Production of green chillies is naturally low during this time of year, so every year the price is higher during this time but no major crisis arises. But this time, the production of this daily essential dropped by 25-30% due to natural causes," Habibur Rahaman Chowdhury, Director (Routine Charge), Field Service Wing, Department of Agricultural Extension (DAE), told The Business Standard.

"We have to wait till November to get the yield of chillies of Robi season when most chillies are grown," he added.

On Friday, chillies were sold at Tk130-170 per kg at the wholesale markets in Karwan Bazar, Rampura, Badda, Mirpur and Segunbagicha. The price varied between Tk200 and Tk240 in retail markets.

Shariful Islam, wholesaler in Karwan Bazar, said, "We have to buy the imported chilli for Tk130-135. If local production does not increase, this price will not decrease much."

According to Bangladesh Bureau of Statistics data, price hikes of green chillies have been taking place from August to October for the past several years. The average price of chilli per kg in August 2021 was Tk92, which jumped to Tk177 in 2020.

Many chilli growers said that despite the high production of chilli last year, the farmers have reduced their cultivation due to a lack of good prices.

Chilli production in the country was 4.93 lakh tonnes in FY 2020-21, which was only 1.58 lakh tonnes in FY 2019-20. Its production in 2021-22 is a little over two lakh tonnes.