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Growth trends in export of green chilli from India

Zimare MDJS KumbharSS ShingeTB DeokatePV MundeSB Jaybhaye

Abstract

The current research investigates the India's Green Chilli exports from 2005–06 to 2024–25, focusing specifically on export quantity, export value, export price and performance by Major destination. The analysis used compound annual growth rates (CAGRs) for both the overall period and two sub-periods. The results show a strong long-term trend in export performance, with export quantity, value and price growing at CAGR of 8.34%, 18.10% and 9.01%, respectively. Export value increased the most, indicating a significant gain in export earnings over the study period. Growth was relatively stronger during Period I, however a slowdown was noticed in Period II, particularly in export prices which recorded only 2.85 per cent growth and was statistically non-significant. Country-wise data revealed significant variance among export destinations. Oman experienced the greatest overall increase in export quantity and value, followed by Qatar and Bangladesh, while the UAE demonstrated constant performance. Kuwait likewise witnessed rapid expansion, while the United Kingdom suffered a decrease during Period II. The findings indicated that India's exports have promising long-term potential, with further market diversity and price realization required to support future growth. Oman showed high growth rate in quantity (49.87%) and Value (64.39%) while United Kingdom showed highest price (12.90%).

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Introduction

Green chili is a key high-value horticultural crop that connects agricultural output to domestic food consumption and global markets. As a fresh crop, its commerce is determined not only by production levels, but also by perishability, quality standards, market prices, transportation options, and the ability to preserve freshness after harvest. India has a significant competitive edge in chili cultivation due to its diversified production settings, extensive marketing network, and experience supplying worldwide markets. The rising demand for Indian green chilies in the Middle East, neighboring Asian countries and other international markets has provided opportunities for producers, dealers, and exporters. At the same time, volatility in export quantity and unit value, stringent food safety rules, pesticide residue limits and limited post-harvest infrastructure can all have an impact on Indian produce's competitiveness. Maharashtra is especially crucial in this perspective due to its rising production base and access to important local and export markets, with cultivars like G4 having significant commercial value. As a result, analyzing green chili export patterns is critical for understanding variations in export volume, value, price realization, destination-specific performance and growth over time. Such an assessment can provide valuable insights for boosting market diversification, increasing export competitiveness, and devising appropriate strategies for the long-term expansion of India's green chili trade.

Materials and Methods

The study was primarily based on secondary data. The time series data were collected over a 20-year period, from 2005-06 to 2024-25. Secondary data on the quantity and value and price of green chili exported by India to major importing destinations was obtained from the Directorate of General Commercial Intelligence and Statistics (DGCIS), Government of India, and the National Agricultural Processed Food Product Export Development Authority (APEDA).

Tools of analysis

Compound annual growth rate

Compound Annual growth rate provides a smoothed rate for easy comparison across time periods. Compound annual growth rate (CAGR) was calculated to identify the trend in green chilli exports from India. This analysis used annual time series data for the period 2005-2025 in terms of export quantity and export value and export price.

Y = 𝒂𝒃 𝒕

where, Y = Country wise exported quantity (MT/yr) and value (₹ lakh) of Green Chilli

Result and Discussion

Export performance of green chilli from India

The table 1. Indicate the compound annual growth rate (CAGR) of export quantity, value and price over the study period. Export amount increased at 8.34% CAGR, suggesting a constant increase in export quantity over time. Export value showed the greatest CAGR of 18.10 per cent, indicating a significant growth in financial gains from exports.

Export prices increased at a CAGR of 9.01 per cent, indicating an overall increase in the average price realized per kilogram. The significantly higher growth rate of export value relative to export quantity suggests that price realization had a vital role in raising export revenues. Overall, the CAGR result demonstrate a positive growth pattern in export quantity, value and price, with export value experiencing the most rapid annualized growth during the study period.

Conclusion

India's export performance remained favourable throughout the study period, with export quantity, value and price all indicating positive growth. The overall CAGR was 8.34% for quantity, 18.10% for value and 9.01% for price, demonstrating a significant increase in export revenues. Growth was somewhat higher in Period I, while Moderation was noted in Period II. There was considerable variety among destination nations, with Oman showing the biggest long-term growth in export quantity and value, followed by Qatar and Bangladesh. The UAE maintained stable growth across all important metrics, while Kuwait had extraordinary increase during Period II. In contrast, the UK saw a decrease in export quantity and value over the latter period.

Suggestions

1. By increasing Green Chilli production, productivity, quality and consistency to satisfy the demands of foreign consumers, export growth can be increased.

2. To increase the quantity and value of Green Chilli exports, more focus should be given on high growth markets like Oman, Qatar, Bangladesh and Kuwait.

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  8. How to cite this article: MD Z, Kumbhar J, Shinge S, Deokate T, Munde P, Jaybhaye S. Growth trends in export of green chilli from India. International Journal of Agriculture Extension and Social Development. 2026;9(10):191-194. doi: https://www.doi.o rg/10.33545/26180723.2026.v9.i10c.4378
Agricultural Economics and PracticesAgriculture and Agroindustry StudiesEconomics of Agriculture and Food Marketsexport valuegreen chilliexport quantityUnited Kingdomexport pricesQatarOmanIndiaKuwait
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