Chilli prices in Telangana, India have dropped by over 40% in two weeks due to a surplus of the good.
The chilli market in the country has increased, on average, 50,000-60,000 bags (of 40-50 kg each) a day. This means there has been a large increase in the number of sellers in the market. This moves the supply curve to the right and creates a surplus in the market, dropping the equilibrium price of chilli dramatically. The price dropped from ₹12,500-₹13,000 about two weeks earlier to ₹7,000 a quintal.