They are a red, hot favourite among culinary connoisseurs. The redder and hotter they are, the more is their demand. The lure of dried, red Indian chilli, especially like the Teja variety grown in Guntur in Andhra Pradesh, is reaping in the lucre for exporters. But be careful. They look quite tempting on the platter, but once they touch your palate, they send your sensations into a tizzy
The best way to resist temptation is to succumb to it. I did, as always, despite being conscious of the consequences. Before embarking on the tour to Guntur, I was cautioned to go slow on the food, especially dishes spiced with the world famous red hot chillies unique to the district. For starters, I did attempt to be selective, but the very first dollop I consumed had me in tears and sweating profusely, with hot sensation radiating from my ears. I also realised that while in Guntur, you are left with no choice but experience the inevitable. Nevertheless, this overwhelming taste is what has been bringing the world to the doorstep of this industrious and affluent district which has earned global reputation, not only for this red hot ingredient, but also cotton and tobacco.
Hindustan Aeronautics Ltd.’s Tejas might have propelled India into the supersonic age, but Guntur’s Teja variety of chillies has the potential to position you among the stars. Take a single bite into any dish spiced with this ingredient, and you find yourself in the midst of the galaxies. The taste is so irresistible, though, that you will, inevitably, end up savouring it to your heart’s content – precisely the reason why Teja is selling like hot cakes in the international market. In fact, just how irresistible Teja is can be gauged from the fact that even the dragon – China – has started knocking on the doors of Guntur to fuel the fire in its belly. This fact assumes even more significance, if seen along with the fact that China itself is one of the largest chilli exporters of the world! According to Kilari Venkata Rosaiah, Proprietor, KKR & Company, a major chilli exporter, there was a point in time when even Mexico, another major global chilli exporter, sought the Teja variety from India. “Guntur is the only location in the world, apart from Madhya Pradesh to a smaller extent, which grows this variety. That is why global buyers come to us,”
n India, around ten different varieties of chilli are grown, each unique to a district or a state and different from the others in taste and pungency. The varieties comprise Dhani (grown in Mizoram and Manipur), Byadagi or Kaddi (Dharwar in Karnataka), Sannam S4 (Guntur in Andhra Pradesh; Warangal and Khammam in Telangana), Hindupur S7 (Hindupur in Andhra Pradesh), Jwala (Mehsana in Gujarat), Kanthari White (Kerala and some parts of Tamil Nadu), Kashmir Chilli (Jammu & Kashmir), and GT Sannam (Malkapur Chikli and Elachpur in Madhya Pradesh). These varieties have been classified according to not only their colour and intrinsic pungency, but also according to their capsaicin values. Guntur, however, accounts for a major chunk of the chilli production in the country, with Rohini, Teja, Kiran and Ankur varieties being the most popular among the 12 grades produced in the district. Guntur Sannam S17 or Teja, which has a 32.11 colour value and 0.226% of capsaicin, is considered the spiciest of all the varieties.
Evidence of this, apart from global demand, is the Chinese affinity for this variety. “The Chinese have set up a unit in Khammam, exclusively to extract oleo-resins from Teja, for their domestic consumption, which reflects their fascination for this variety,” Rosaiah said.
For more glory
India is the world’s biggest exporter of dry red chilli (currently traded under HS Code 09042110), with the value exports steadily rising over the last decade – from 1.01 lakh MT or $69.5 million in FY2005 to 1.57 lakh MT or $236.2 million in FY2014. At the same time, while Malaysia and Sri Lanka were the top two dry red chilli importers from India a decade back, today, they have been replaced by Thailand and Vietnam. And accounting for a lion’s share of this multi-million dollar worth of exports is Guntur, since it accounts for about 60% of the total chilli production in the country. If you thought this was great, the district’s chilli exports are all poised for a massive boost with the recent establishment of a Spice Park, which has been set up to provide common storage facilities for raw materials and finished products, apart from uninterrupted power supply.
Just how bullish the government is on the Spice Park can be gauged from the fact that it was inaugurated by none other than Minister of State for Commerce and Industry Nirmala Sitharaman. It’s worth noting that while inaugurating the park, the minister had said, “Farmers can bring raw chilli to the park, which has an installed capacity of 1 MT/hour, and get it cleaned, graded, powdered and packed.” Expressing her expectations from the district’s chillies, she had added, “At present, Guntur accounts for 60-65% of chilli exports from the country. But steps have to be taken to further improve the quality of the crop and increasing its yields.”
Chilli economics is fairly simple. For a chilli farmer, the investment, excluding cost of land, is between Rs.1-1.1 lakh/acre. With a yield of 3-3.5 MT/acre and going rates in the range of Rs.50,000/MT and Rs.70,000/MT, the return on investment (RoI) can range anywhere between 50% and 100%. So, what is so unique about the Guntur chillies that draw global buyers in droves and provide such lucrative returns? High capsaicin, which gives the pungency, and capsanthin that provides the red colour – two of the most crucial aspects of chilli pricing.
"A spice park has recently been set up in Guntur to help the local chilli industry"
Given these USPs, it’s rather inexplicable that inadequate and improper storage infrastructure in Guntur is hampering both production and preservation of chilli. A visit to the Spice Park, which was established with a lot of hype and hoopla, proved to be a revelation. It was deserted, with shutters down. And this was just three days after the inauguration! “The entire staff is on leave and we would be able to meet you only on Monday.” This was a Thursday. If the district’s chillies didn’t get me in tears, such apathy surely did.
Dirty tricks
Despite India’s domination the global chilli market, lack of systematic and scientific pricing continue to affect the RoI for farmers. The market is ruled by commission agents who keep the farmers in their stranglehold through various means. This, particularly since the farmers are forced to sell through these commission agents due to the non-availability of an auction platform. “The commission agents resort to giving out loans of Rs.20,000-25,000 to the farmers and during the time of procurement, coerce them to sell the produce through them. This way, the commission agents not only get an interest on their loan, but also 4% commission from the farmers for selling the crop through them. This practice has also led to many farmers getting entrapped in debt and becoming captive to the commission agents’ diktats,”
No competition
Despite minor impediments, a big positive for Indian chilli farmers, as well as exporters, is the fact that production is on a decline in China which was, till recently, one of the biggest chilli exporters in the world. This will keep forcing global buyers to come to India, especially Guntur. Dried Red Chilies, especially like the Teja varieties, are proving to be delicious pickings for global buyers to spice up their pizzas and pickles. Vast swathes of red, scorching under the sweltering heat in the market yard, can make you sweat – not from the heat, of course! But, this is one ingredient the world craves for to satiate its taste buds, despite the consequences.