The recent price spike of red chili peppers in East Kalimantan, reaching IDR250,000/kg before dropping to IDR120,000/kg, is an unusual occurrence.
Typically, the highest red chili price spike that can still be tolerated is below IDR100,000/kg, as has happened several times during the Eid period. This price increase is due to a decrease in chili production caused by agroclimate and pest and disease attacks.
Before 2010, the production cost of red chili was approximately IDR70 million per hectare, with a population of 16,000 plants yielding an average production of 1.2-1.5 kg per plant. However, the production cost has since increased to IDR125 million per hectare with the same population, resulting in a rise in production cost from IDR4,500 to IDR5,500 per plant.
This situation is not very profitable for planters, as the collectors still retain the highest margin. Currently, the general market price for red chilies ranges from IDR30,000 to IDR35,000 per kilogram. However, prices may be lower if you establish partnerships with suppliers for industrial needs. The average price of red chili is set at IDR11,000 to IDR12,000 per kilogram.
