On Thursday, chilli prices in the major markets of Guntur and Khammam were mostly steady to higher, supported by sustained demand, while a mixed trend was observed in Warangal. As anticipated, prices of some select varieties in Guntur increased by ₹5–10 per kg. Trade sources said prices are likely to hold at current levels in the near term unless there is a sharp rise in arrivals. In terms of arrivals, around 70,000 bags of chillies reached Guntur, broadly in line with the previous session. Warangal and Khammam recorded arrivals of about 5,000 and 7,000 bags respectively, keeping supplies relatively limited in Telangana markets. Despite these arrivals, prices remained firm, reflecting strong demand. In the export segment, prices of Teja and Teja Deluxe varieties remained unchanged from last week, trading in the range of ₹152–155 per kg. Prices have largely been stable over the past eight to ten sessions, but the overall trend continues to be strong due to consistent export demand. From a fundamental perspective, production concerns are supporting market sentiment. Acreage under chilli cultivation is reported to be lower this season, and yields in key producing regions are expected to decline, which could reduce overall output. In addition, crop quality is likely to be relatively weak, and sorting activity has been limited due to the presence of inferior-quality produce. Given the tight supply situation, the chilli market is expected to remain generally firm in the near term. However, traders cautioned that a gradual increase in fresh arrivals could lead to minor corrections, limiting any sharp upside in prices.