SATUN, THAILAND – Fresh chilies reached record prices nationwide in Thailand, putting heavy cost pressure on markets and street kitchens.
Record highs on southern markets
On markets in the south, including Khuan Kalong district in Satun province, bird’s eye chilies were recently offered at 300 to 350 baht per kilogram, while red Jinda chilies stood at around 250 baht. Across the country, prices for fresh chilies ranged between 250 and 350 baht per kilogram, a level market observers described as unprecedented.
Floods and drought cut harvests
Market participants attributed the sharp increase mainly to severe flooding in the south in November, which damaged many cultivation areas and significantly reduced the harvest. At the same time, a prolonged dry spell further limited production, tightening overall supply and pushing prices higher.
Street kitchens and small firms under pressure
Traders and small food businesses that relied on fresh chilies for chili pastes and ready-to-eat dishes were particularly affected. Vendors on street markets reported that the purchase price of chilies had become a decisive cost factor. A Som Tam seller in Khon Kaen had already switched to dried chilies, as these currently offered a better price-performance ratio.
Vendors adjust prices and recipes
Some sellers tried to keep their customers despite the high purchase costs. A currypaste vendor said she was maintaining the final prices of her products at previous levels, even though her margin had fallen significantly. She remained optimistic and expected chili prices to fall again in the coming months, estimating that the situation could ease within about two months.
Wide gaps between regions and varieties
On major wholesale markets such as Talat Thai in the central region, significantly lower prices were reported. Red bird’s eye chilies there cost on average 140 to 170 baht per kilogram, while green chilies were priced at 60 to 70 baht per kilogram. These figures highlighted substantial regional and variety-based differences that complicated both procurement and price calculations for traders.
Hopes pinned on a change in the weather
Experts assumed that the market could calm down if weather conditions improved and future harvests delivered larger volumes. Until then, traders and consumers had to cope with the high prices and adjust their strategies. According to the news service Thai Newsroom, sellers were weighing options such as switching to alternatives like dried chilies, absorbing part of the costs to retain regular customers, or modifying recipes to reduce the use of fresh chilies.
Calls for better coordination along the chain
In the long term, better coordination along the supply chain was being discussed, with the aim of achieving more stable producer prices and a more reliable supply. Chili, described as being as integral to Thailand as rice and fish sauce, was at risk of becoming a luxury item if such price shocks persisted.