India time

Guntur: Market Town Guide

Guntur in Andhra Pradesh is the chilli capital of India. Its Mirchi Yard is regarded as the largest dry red chilli market in Asia, and the surrounding district is also a centre of tobacco, cotton and pulse trade.

AgricultureIndustry.in › Mandi Towns › Guntur
StateAndhra Pradesh
Main cropsDry red chilli, tobacco, cotton, urad, maize
Known forAsia's largest chilli market
VarietiesTeja, 334 (Sannam), Byadgi-type, wonder hot and others
StorageHundreds of cold stores for chilli
GIGuntur Sannam Chilli

About the Market

Bags of sun-dried red chilli from Guntur, Prakasam, Krishna, Khammam and Warangal districts arrive at the Mirchi Yard, where they are auctioned by commission agents to traders, grinders, oleoresin makers and exporters. Guntur chilli goes to China, Bangladesh, Thailand, Sri Lanka, Malaysia, the Middle East and Europe, as whole chilli, stemless chilli, powder and oleoresin. A large network of cold stores around the town holds chilli for months to protect colour and avoid fungal damage.

Guntur is also the headquarters of the Tobacco Board and a centre of FCV tobacco buying and threshing, and its markets trade cotton, urad, maize and turmeric.

Seasons

New chilli arrives from January and peaks from February to April. Cold-store releases continue through the year.

Crops Traded Here

Green ChilliTobaccoCottonUradDry chilli (SpiceIndustry.in)

How Trade Works in an Indian Mandi

Farmers bring produce in tractors, trucks or bullock carts to the market yard, where it is unloaded at the shop of a licensed commission agent (arhtiya or dalal). Buyers, including traders, millers, processors and exporters' agents, inspect the lots and bid in an open or tender auction, or increasingly on the eNAM electronic platform. The winning buyer pays a market fee to the APMC, the commission agent takes a small commission, and the farmer is paid. Weighing, cleaning, grading and loading are done by licensed workers in the yard. Daily arrivals and prices are reported to Agmarknet.

Buying from This Market as an Outside Buyer

Buyers from other states or abroad normally work through a licensed local trader or commission agent, who attends the auctions, checks quality, arranges cleaning, grading, bagging and loading, and bills with GST. Before a first deal, ask for samples, agree on the grade, moisture and tolerance for damaged or foreign matter in writing, and decide who pays for loading, transport and insurance. For exports and food processors, a third-party lab test for moisture, residues or aflatoxin is common. Payment is usually made by bank transfer before dispatch or against documents, and many traders now accept eNAM settlement. Prices change daily, so confirm the rate on the day of loading.

Getting There

Guntur is a railway junction about 35 km from Vijayawada, whose airport at Gannavaram is the nearest. Chilli for export moves to Chennai, Krishnapatnam and Kakinada ports, or in containers via inland depots.

Related: All mandi towns · All crops

Names are listed for reference only and do not imply endorsement or affiliation. The About and Explore buttons open Google in a new tab; results there are generated by Google and third parties, not by this site. Prices, MSP, export rules and schemes change often. Nothing here is financial, legal or purchasing advice. Full disclaimer