Guntur, August 11: Andhra Pradesh’s spice export corridor faces a striking market contrast. Local exporters shipped a record 296,733.18 metric tonnes of dry chillies and chilli products in FY 2025–26, yet total earnings dropped to $551.27 million. This revenue marks a 25.2% decline from the peak earnings of $736.96 million in FY 2023–24.
Minister of State for Commerce and Industry Jitin Prasada presented these figures in the Lok Sabha following an unstarred question by MP Magunta Sreenivasulu Reddy.
The Ministry’s official data reveals a clear gap between shipment volumes and actual income. Between FY 2023–24 and FY 2025–26, shipment volumes grew by nearly 8%, but total earnings fell by $185.69 million. The average price per metric tonne dropped from ~$2,681 in FY 2023–24 to ~$1,857 in FY 2025–26. Changing global demand, commodity price shifts, and strict international safety standards drove this drop.
China remains the primary destination for Andhra Pradesh’s chilli exports. Chinese buyers absorbed between 30% and 36% of total exports across the five-year period. Regional neighbors Bangladesh, Thailand, and Sri Lanka also maintained strong import shares. Meanwhile, shipments to North America held steady at around 3%.
To buffer market volatility and address quality compliance, the Spices Board increased financial assistance under its SPICED scheme. Annual funding allocated to state stakeholders grew from ₹56.36 Lakhs in FY 2021–22 to ₹128.40 Lakhs in FY 2025–26.
The government continues to back local infrastructure through a dedicated Quality Evaluation Laboratory and Spices Park in Guntur. Out of nearly 2.96 lakh export samples tested nationally over five years, the Guntur laboratory evaluated 43,415 samples for residues and contaminants. The Spices Board now registers 373 state exporters and has trained over 5,350 farmers and processors to meet evolving global standards.
