Building BusinessServices

Section 21

Byadagi

Haveri, Karnataka · Trade

Byadagi dry red chilli market

sourced figures
1
main products
3
businesses to start
4

The story

Byadagi chilli is prized for its deep red colour and mild heat, which makes it a favourite for colour in curries and for natural food colour. Farmers in Haveri, Dharwad, Ballari and nearby districts bring their crop to the APMC market in Byadagi town. Cold storages and oleoresin extraction units grew around the market. Byadagi chilli carries a GI tag.

In numbers

  1. Deccan Herald describes the Byadagi market as Asia's largest dry chilli hub (2026).

    Byadagi, a town seasoned by chilli (Deccan Herald) · 2026

GI tag

Ways in for a newcomer

  • Chilli cold storage
  • Chilli powder grinding and packing
  • Oleoresin and natural colour extraction
  • Commission agency and trading

Problems the cluster faces

  • Sharp price crashes in glut years
  • Shortage of cold storage at peak arrival
  • Aflatoxin and pesticide residue limits for exports
  • Adulteration of chilli powder

Businesses to start here

Red Chilli Powder Unit →Masala / Spice Grinding Unit →Cryogenic Spice Grinding →Natural Colour (Marigold-based) Unit →

Sources (3)
  1. Registration details of Geographical Indications (IP India GI Registry)
  2. Byadagi, a town seasoned by chilli (Deccan Herald)
  3. Karnataka State Industrial Profile 2015-16 (MSME-DI Bengaluru, DC-MSME)