It is cultivated in all the States and Union Territories of the country. The important States growing chilli are Andhra Pradesh, Orissa, Maharashtra, West Bengal, Karnataka, Rajasthan and Tamil Nadu. Andhra Pradesh alone commands 46% of the chilli production in India. As per the latest statistics, India produced 8,00,100 tonnes of dry chilli from an area of 9,30,000 hectare.

Chilli has two important commercial qualities. If some varieties are famous for red colour because of the pigment capsanthin, others are known for biting pungency attributed by capsaicin. India is the only country rich in many varieties with different quality factors.

While consumption of chilli is the highest in India, maximum export is also from this country. India made the record export of 51,900 tonnes of dry chilli in 1996-97. Oleoresin of chilli with low, medium or high pungency is also exported in large quantities. Chilli powder is another important item of export. Indian chilli and its products are brought by a number of countries. Important among them are Sri Lanka, Bangladesh, South Korea and USA for dry chilli and USA, Germany, Japan, UK and France for oleoresin. India can supply chilli in whole, crushed, powder or oleoresin forms in consistent colour and required pungency.