Chilli is an important commercial as well as spice crop time immemorial and gaining lot of economic importance because of its use in ready-to-use masala and sambar powders. Chilli is cultivated exclusively for market, with a little proportion of it retained for domestic consumption. Many a time farmers have burnt their fingers due to sudden collapse in prices due to gambling of traders in marketing of this crop. In this regard, in order to help the farmers and to save them from distress sale, prices of dry chillies in Byadagi regulated market have been analyses and prices during harvest months ( i.e., December 2013- February 2014) have been forecast for Byadagi area by the Domestic and Export Market Intelligence Cell, Department of Agribusiness Management, University of Agricultutral Sciences , Dharwad.

            Past 22 years monthly price data of dry chillies from Byadagi regulated market has been collected and was analysed by employing rigorous statistical time series modal and prices have been forecasted. Other than this in order to check the forecasted prices and also to fine tune them further, the views and suggestions collected from chilli traders, agricultural scientists and progressive chilli producer of this region were also considered. The prices in other major markets for chilli, demand from manufactures of ready-to-use masala and sambar powders, existing government policies towards this crop, import export scenario of the crop and the prices of the crop in other important markets were also taken in to consideration which influence the future prices in Byadagi market.

The prices of dry chillies, at present (November, 2013) are around Rs. 7200 per quintal, which is expected to vary with the quality and variety. Hence, in order to help the farmers to decide up on marketing of chilli, the Domestic and Export Market Intelligence Cell (DEMIC) has come out with the forecasting the prices. According to the prediction of the DEMIC, the prices of chilli (kaddi variety) would be around Rs.6600-7000 during December, 2013, Rs. 7900-8200 in the month of January and Rs. 6700-7000 in the month February, 2014. The prices are expected to go high in the month of January. So farmers are advised to sell their commodity in the month of January to obtain high price for their commodity.  Well dried, uniform coloured and free dust and dirt chillies would fetch better prices. The farmers need to keep these points in mind while storing the chillies and bringing them to the market for sale.