Chillies were first grown in Central America, South America and West Indies. The Spanish conquest eventually introduced chilly cultivation around the world. Yellow chilly has anti-bacterial, analgesic and anti-diabetic properties. It has also been proven that chillies reduce cholesterol level in patients with obesity. Yellow chillies are also a good source of vitamin C, though compared to the fiery red chillies, they have a considerably low amount of Vitamin C and carotene.

This variety of chilly is mainly grown in the regions of Punjab and South Kashmir. They are widely used in Indian households while cooking as spices to enhance colour and piquancy to the dishes in recipes of stuffed chilly and in preparation of dips and sauces.The yellow chilly powder is extensively used in vegetarian and non-vegetarian dishes.It is also used in making pickles, soups, sauces and stews. Chillies, either fresh or ground, can cause severe burning sensation to hands and severe irritation to nasal passages, eyes, and throat. Therefore, it may be advised in some sensitive individuals to use thin hand gloves while handling chillies.