In the two major producing states of South India, Andhra Pradesh and Telangana, the harvest and preparation of the new red chilli crop has begun. However, the significant arrival in the markets is expected to happen only in February-March, but the pressure on prices has already started to build. Buyers are focusing on the new crop, and therefore, at present, they are purchasing only limited quantities to meet immediate needs. They expect some price softening in the coming months. The most significant red chilli producing center, Guntur, is currently receiving an average daily arrival of around 75,000 to 77,000 bags, of which about one-third (25,000 to 26,000 bags) consists of new crop material. Prices have remained relatively stable. The demand and consumption of red chillies in Northern India are expected to rise due to the harsh winter, but traders activity in purchasing has not yet increased much. After January 14 (Makar Sankranti), the wedding season and auspicious festivals will begin, and this may lead to an improvement in the red chilli trade. Recently, Teja red chilli prices were recorded at ₹14,500–16,000 per quintal in Guntur, Andhra Pradesh, and ₹15,000–16,500 per quintal in Warangal, Telangana. There is also the likelihood of strong demand for red chillies during Ramzan, which could lead to a price improvement. Exports to countries like Bangladesh, Malaysia, and other Muslim-majority nations are expected to increase. There could also be strong demand from China. With the robust arrival of the new crop and continued strong domestic and export demand, better trade prospects could emerge, and prices may not experience significant fluctuations. There are reports of some crop damage, but overall, production is expected to be normal.