Nepal: Chili And Pepper Market 2025

Chili And Pepper Market Size in Nepal

The Nepalese chili and pepper market rose sharply to $X in 2022, growing by 10% against the previous year. In general, consumption saw a buoyant expansion. Chili and pepper consumption peaked at $X in 2016; however, from 2017 to 2022, consumption remained at a lower figure.

Chili And Pepper Production in Nepal

In value terms, chili and pepper production totaled $X in 2022 estimated in export price. Over the period under review, production saw a buoyant expansion. The growth pace was the most rapid in 2015 with an increase of 178% against the previous year. Over the period under review, production hit record highs at $X in 2016; however, from 2017 to 2022, production stood at a somewhat lower figure.

In 2022, the average chili and pepper yield in Nepal rose to X tons per ha, with an increase of 2.9% compared with the previous year's figure. In general, the yield posted a buoyant increase. The most prominent rate of growth was recorded in 2015 with an increase of 100% against the previous year. Over the period under review, the average chili and pepper yield hit record highs at X tons per ha in 2018; however, from 2019 to 2022, the yield remained at a lower figure. Despite the increased use of modern agricultural techniques and methods, future yield figures may still be impacted by adverse weather conditions.

In 2022, the chili and pepper harvested area in Nepal stood at X ha, with an increase of 7% compared with the year before. Overall, the total harvested area indicated a prominent expansion from 2012 to 2022: its figure increased at an average annual rate of +5.0% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, chili and pepper harvested area decreased by -10.0% against 2019 indices. The most prominent rate of growth was recorded in 2015 when the harvested area increased by 28%. The chili and pepper harvested area peaked at X ha in 2019; however, from 2020 to 2022, the harvested area remained at a lower figure.

Chili And Pepper Exports

Exports from Nepal

In 2022, chili and pepper exports from Nepal declined markedly to X tons, waning by -46.5% compared with 2021 figures. Over the period under review, exports, however, posted strong growth. The pace of growth appeared the most rapid in 2021 with an increase of 1,704%. As a result, the exports reached the peak of X tons, and then contracted rapidly in the following year.

In value terms, chili and pepper exports dropped remarkably to $X in 2022. Overall, exports, however, continue to indicate strong growth. The most prominent rate of growth was recorded in 2021 when exports increased by 1,040% against the previous year. As a result, the exports reached the peak of $X, and then shrank rapidly in the following year.

Exports by Country

India (X tons) was the main destination for chili and pepper exports from Nepal, accounting for a 94% share of total exports. Moreover, chili and pepper exports to India exceeded the volume sent to the second major destination, the United Arab Emirates (X kg), more than tenfold. The third position in this ranking was held by China (X kg), with a 2% share.

From 2012 to 2022, the average annual rate of growth in terms of volume to India totaled +21.1%. Exports to the other major destinations recorded the following average annual rates of exports growth: the United Arab Emirates (+2.5% per year) and China (-19.6% per year).

In value terms, India ($X) remains the key foreign market for chilies and peppers (green) exports from Nepal, comprising 80% of total exports. The second position in the ranking was taken by the United Arab Emirates ($X), with a 14% share of total exports. It was followed by China, with a 4.1% share.

From 2012 to 2022, the average annual growth rate of value to India stood at +43.3%. Exports to the other major destinations recorded the following average annual rates of exports growth: the United Arab Emirates (+3.4% per year) and China (-21.1% per year).

Export Prices by Country

In 2022, the average chili and pepper export price amounted to $X per ton, with an increase of 1.7% against the previous year. Over the period under review, the export price, however, saw a perceptible contraction. The most prominent rate of growth was recorded in 2020 when the average export price increased by 55% against the previous year. Over the period under review, the average export prices hit record highs at $X per ton in 2015; however, from 2016 to 2022, the export prices stood at a somewhat lower figure.

There were significant differences in the average prices for the major external markets. In 2022, amid the top suppliers, the country with the highest price was the United Arab Emirates ($X per ton), while the average price for exports to India ($X per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was recorded for supplies to India (+18.3%), while the prices for the other major destinations experienced mixed trend patterns.

Chili And Pepper Imports

Imports into Nepal

In 2022, the amount of chilies and peppers (green) imported into Nepal rose slightly to X tons, growing by 4.1% compared with 2021 figures. Overall, imports, however, saw a noticeable curtailment. The most prominent rate of growth was recorded in 2020 when imports increased by 89% against the previous year. Over the period under review, imports reached the maximum at X tons in 2016; however, from 2017 to 2022, imports remained at a lower figure.

In value terms, chili and pepper imports expanded slightly to $X in 2022. Over the period under review, imports, however, continue to indicate a pronounced curtailment. The pace of growth was the most pronounced in 2020 with an increase of 74%. Imports peaked at $X in 2016; however, from 2017 to 2022, imports remained at a lower figure.

Imports by Country

In 2022, India (X tons) was the main supplier of chili and pepper to Nepal, with a approx. 100% share of total imports.

From 2012 to 2022, the average annual rate of growth in terms of volume from India totaled -4.9%.

In value terms, India ($X) constituted the largest supplier of chilies and peppers (green) to Nepal.

From 2012 to 2022, the average annual growth rate of value from India totaled -2.6%.

Import Prices by Country

In 2022, the average chili and pepper import price amounted to $X per ton, dropping by -1.9% against the previous year. Over the period from 2012 to 2022, it increased at an average annual rate of +2.5%. The pace of growth was the most pronounced in 2014 an increase of 39%. As a result, import price attained the peak level of $X per ton. From 2015 to 2022, the average import prices failed to regain momentum.

As there is only one major supplying country, the average price level is determined by prices for India.

From 2012 to 2022, the rate of growth in terms of prices for India amounted to +2.5% per year.

Source: IndexBox Platform