Chili prices have increased tenfold due to strong demand from China.

The price of chili peppers has risen to 72,000 VND per kilogram, ten times higher than the same period last year, due to traders buying them for export to China.

In the fields of Nghia Ha commune, on the southern bank of the Tra Khuc River, Quang Ngai City, many farmers have been rushing to harvest chili peppers in recent days to sell them at a high price, around 72,000 VND.

"The price of chili peppers is the highest it has ever been," said Ms. Nguyen Ha, who grows more than one sao (500 m2) of chili peppers, adding that in previous years, the highest price for this commodity was only 50,000 VND per kilogram.

Mr. Le Van Minh in Nghia Ha commune is enjoying a bumper crop of chili peppers. Photo: Pham Linh

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

With a yield of about one ton per sao (approximately 1000 square meters), farmers harvest in multiple 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, people have proactively reduced the planting area from 30 hectares to 20-25 hectares this year. In addition, farmers are intercropping chili with other plants to diversify their income sources, in case chili prices fall.

Similarly, in Binh Duong commune, Binh Son district - a 100-hectare chili-growing area along the Tra Bong River - farmers are also delighted with the increase in chili prices. Ms. Cao Thi Truc, who owns 1.5 sao (approximately 1500 square meters) of chili plants, said she has sold several hundred kilograms, earning nearly 15 million VND. "I hope the price of chili remains stable until the end of the season," she said, adding that the reduced acreage and bad weather have resulted in a lower chili yield compared to last year.

The best-looking chili peppers will be selected for export to China. Photo: Pham Linh

According to traders, chili prices have increased. Due to high demand from China and a decrease in supply, traders, after purchasing the peppers, select the best ones, load them into refrigerated containers to ensure freshness, and then export them.

According to statistics from the Quang Ngai Department of Agriculture and Rural Development, the province has approximately 2,500 hectares of chili pepper cultivation, mainly concentrated in Binh Son and Tu Nghia districts. Binh Son district has the largest area, with about 1,000 hectares. However, due to dependence on the Chinese market, the authorities do not encourage farmers to cultivate chili peppers on a large scale.

According to the Vietnam Pepper and Spice Association, as of November 2024, Vietnam exported over 10,000 tons of chili peppers, with a total value exceeding US$24 million. China was the largest chili pepper export market, accounting for nearly 80% of the market share, followed by Laos with over 14%.

According to According to Xinhua News Agency , China has an annual chili pepper cultivation area of approximately 32 million acres, producing over 66 million tons a year, the highest in the world. The chili pepper industry contributes more than 250 billion yuan to the Chinese economy, including both fresh and processed products. Chili peppers are an indispensable ingredient in the cuisine of many regions in China, especially in southern and southwestern provinces such as Sichuan, Hunan, and Yunnan. These areas are renowned for their diverse and spicy dishes.

However, the cost of growing chili peppers in China is higher than in many other countries. Since 2018, the country's chili pepper imports have begun to exceed its export value.

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