Chili prices increase 10 times due to strong consumption in China

Chili prices increased to 72,000 VND per kilogram, 10 times higher than the same period last year, due to traders purchasing to export to China.

In the fields of Nghia Ha commune, on the south bank of Tra Khuc river, Quang Ngai city, in recent days, many farmers have been picking chili peppers to sell at high prices, around 72,000 VND.

"Chili prices are the highest ever," said Ms. Nguyen Ha, who grows more than 1 sao (500 m2) of chili, adding that in previous years, the highest price of this item was only 50,000 VND per kilogram.

Mr. Le Van Minh in Nghia Ha commune in a chili field that is getting good prices. Photo: Pham Linh

This year, the price of chili at the beginning of the season was 40,000 VND per kilogram, then gradually increased to 70,000 VND. Although there were days when chili prices dropped, they continued to increase sharply. Currently, each kilogram of chili costs 72,000 VND, 10 times higher than the same period last year.

With a yield of about one ton per sao, farmers harvest in several batches and sell at different prices. On average, a chili crop lasts 4-5 months, with a profit of about 50 million VND per sao.

However, according to the People's Committee of Nghia Ha commune, due to low chili prices last year, this year people proactively reduced the planting area from 30 hectares to 20-25 hectares. In addition, farmers also intercrop chili with other crops to diversify their income sources, in case chili prices drop.

Similarly, in Binh Duong commune, Binh Son district - a 100-hectare chili growing area along the Tra Bong river, farmers are also happy because chili prices have increased. Ms. Cao Thi Truc, owner of 1.5 sao of chili, said she has sold several quintals, earning nearly 15 million VND. "I hope chili prices will remain stable until the end of the season," she said, adding that the reduced acreage and bad weather have caused chili output here to decrease compared to last year.

Beautiful chili peppers will be selected for export to China. Photo: Pham Linh

According to traders, chili prices increased. due to strong Chinese consumption, while supply is decreasing. After purchasing, agents will select beautiful chili peppers, put them on refrigerated containers to ensure freshness, and then export them.

According to the Department of Agriculture and Rural Development of Quang Ngai, the province has about 2,500 hectares of chili cultivation, mainly concentrated in Binh Son and Tu Nghia districts. Of which, Binh Son district has the largest area with about 1,000 hectares. However, due to dependence on the Chinese market, the management agency does not encourage people to grow it en masse.

According to the Vietnam Pepper and Spice Association, as of November 2024, Vietnam exported more than 10,000 tons of chili, with a total turnover of over 24 million USD. China is the largest chili export market, accounting for nearly 80% of the market share, followed by Laos with more than 14%.

According to Xinhua News Agency , China has an annual chili cultivation area of about 32 million mu, with an annual output of more than 66 million tons, the highest in the world. The chili industry contributes more than 250 billion yuan to the Chinese economy, including fresh and processed products. Chili is an indispensable ingredient in the cuisine of many regions in China, especially the southern and southwestern provinces such as Sichuan, Hunan, and Yunnan. These regions are famous for their diverse spicy dishes.

However, the cost of growing chili in China is higher than in many countries. Since 2018, the country's chili imports have begun to exceed exports.

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