I noticed this paste and was impressed by the look of the image. The flecks of charcoal says straight away a home-made and lovingly prepared paste.

I wrote to the owner who graciously has allowed me to use his image and he also sent back a description of the paste which I had no knowledge of:

"Chakma Chillie Paste which is called "Sidol-diye Morich Baaitye". It is a preparation of Highland Chakma Chilly with roasted fish paste(sidol).It is a speciality of Chakma people in South Western part of Mizoram State, South Western part of Tripura state and Arunachal Pradesh of India.Also in Chittagong Hill Tracts of Bangladesh and Arakan in Burma."

30 gm Chillie powder
45 ml (1 1/2 fl oz) Vegetable oil ( NB: Not Extra Virgin Olive Oil)
Pinch of salt

Place the Chillie powder into a heat proof bowl.
heat the oil to the smoking stage.
Carefully pour the hot oil slowly onto the chillie and mix continuously.
Allow to cool.
Transfer  to a sterilised glass jar.
Store in the refrigerator for a MAX of 10 days.

Note: Risk of botulism if stored for a longer period than 10 days.

Using Extra virgin olive Oil will produce a lot of smoke at a lower temperature than non EVO. The high temperature increases the safety margin, so to use EVO and heating it till just smoking would be at a sub-optimal temp and probably cause an charred taste within the oil