Chilli is grown throughout the country and is used in almost all dishes. Chillies are of numerous variety and their degree of pungency varies. Dry and fresh Chillies are used in various dishes. Dry chilly gives a red colour and makes the dish attractive. 

This spice is grown throughout the year and so there is no scarcity and a good quantity is exported. Kashmir chillies are known for its colour and pungency. The highly pungent chilly is 'Sannam' and slightly pungent chilly is 'Mundu'. Sannam has international popularity.

Chillies are used with or without stalks. To make good quality of chilli powder the stalks should be removed. It is variously called capsicum, paprika, pimento, sweet pepper, red pepper, cayenne pepper and bird pepper, depending on the type of chilli and the manner in which it is prepared and used. Indian chillies are mainly exported to USA, Sri Lanka, Bangladesh, the middle and the far east.