Chilli futures for April continued to slide by Rs 88, or 1.27%, to Rs 6,830 per quintal in 9,585 lots.
At the National Commodity and Derivatives Exchange (NCDEX), the March contract lost Rs 52, or 0.78%, to Rs 6,620 per quintal in 795 lots.
Chilli continued to extend losses for the third consecutive day.
Prices further dropped as speculators trimmed positions due to sluggish spot demand.
Increased arrivals from producing belts further fuelled the downtrend.