These look like smaller versions of red capsicums or bell peppers. These are also called as cherry peppers. These are used to stuff green olives. It is basically a small sweet red pepper. Pimiento is a Spanish word that means pepper.
It is usually 7-10 cms long and has a sweet flesh and aroma. However many pimiento are hot and spicy. Usually sweet pimiento are stuffed in green olives to give it a better taste.
How is it used?
The skin of pimiento is removed before use. They are used to make pimiento cheese and pimiento loaf.
Pimientos are low in calories and fat content. It contains a great deal of Vitamins C and A. Dried pimiento can be ground into a powdered spice called paprika. It is widely used in Spain, Hungary, South America and the Middle East.