From the picture, one of the peppers looks almost as if there is a fungus. Were the peppers completely dehydrated? Any moisture can play havoc with stored peppers.

Have you cut open one of the peppers to see if there was mold inside?

Skip Pallesen Grey mold inside. The worst is when it gets "saggy", the skin doesnt dry out but gets soggy.

Skip Pallesen Im going to have to learn how to store chillis properly.
Do you dry yours out in the sun>?

Mark G Fegen I dry all of my peppers in a Nesco dehydrator. I make a slit in the pepper and allow the peppers to dehydrate until there is no moisture left in the pepper. For some peppers that has taken ten to fifteen hours. The dried peppers come out brittle.

Skip Pallesen Thanks i will investigate, as this sounds ideal... Is this a good way to dry peppers for consumption?

I roast them on a hot griddle for about 20 seconds and then cool in a paper bag. I then put them in boiling water, cover and allow them to sit for about thirty minutes. When I am making my chili,enchilada/burrito/taco meat or a sauce, I then place the rehydrated peppers along with some soaking water in a blender and blend until smooth. I have never had any mold on the dehydrated peppers. If you can, dehydrate them with the windows open.