I have a chilli plant that's on its second year of fruit production. On a couple of chillies I noticed these bumps or loops growing out of the top of the chillies.
See the photographs below for an example:
What's causing this deformity?
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Major virus of peppers I am not sure of course but peppers like their sister tomatoes are fraught with disease and a second year?
What I see are soft, sunken lesions as well as the mutant pepper coming out of the proper pepper. Reminds me of boles on pine trees. Virus.
Check out this article and let me know what you think. I am fairly sure this is a virus and as such I would get rid of those plants. They would be done. Get rid of the soil and plant material. Not in compost you might want to use for tomatoes, peppers, egg plant, potatoes or anything in Solanaceae family. I'd bag and then dig a big hole somewhere and bury.
Do you have an out of doors garden? Did you use garden soil? That would be the vector. Never use garden soil for pots. Pull up all the potting soil/disease/insect problems when garden soil is used for pots. This is why I never ever use garden soil to plant plants or start seed in pots. Just basic, sterilized store bought potting soil.
Perhaps someone else will come up with a better answer. I hope so but I think not. Yes, you can harvest the chilies cut off the sunken lesions, roast them (better than drying at this point) and eat safely. But those plants if infected with this virus need to go.
Check with your local Cooperative Extension Service to find how to properly dispose. I'd like to know if you used potting soil or garden soil or added some non sterilized mulch. Sorry. This is how we learn.
And, I have got to know if these peppers are strictly indoor plants. If so I am amazed you've gotten this far! Do you use artificial lighting?