African Journal of Basic & Applied Sciences 4 (5): 161-164, 2012 ISSN 2079-2034 IDOSI Publications, 2012 DOI:

: 10.5829/idosi.ajbas.2012.4.5.1110

Economics of Chilli Production in India

1

P.P. Jagtap, U.S. Shingane and 2K.P. Kulkarni

Department of Agricultural Economics and Statistics, K.K. Wagh College of Agriculture Business Management, Nashik, India 2 Department of Agricultural Economics and Statistics, Shri Shivaji Agriculture College, Amravati, India
1

Abstract: Chilli (capscicum annuam L.) is most widely used and universal spice of India. The study was conducted in Achalpur tahsil of Amravati district of Maharashtra in India.. Total four villages and twenty farmers from each village i.e.total 80 farmers were selected randomly as sample size. Data used were pertaining to the period 2009-10. Economic analysis of data indicated that Cost C was found to Rs. 40541.72, Rs. 42811.07 and Rs. 53421.29 per acre for small, medium and large farmers respectively. Net returns over cost C was Rs. 19329.52, Rs. 24114.79 and Rs. 21400.51 per acre and input-output ratio at cost C was 1:1.48, 1:1.56 and 1:1.40 for small, medium and large farmers respectively. Key words: Spice Chilli Cost of cultivation Economics of Production tonnes of chilli valued Rs.807.75 crore in the year 2006-07 (http:www.assocham.org/prels/shownews.php?id=1306). In Maharashtra state area, production and productivity of chilli was around 90 million ha., 44 million tonnes and 489 kg/ha respectively during 2003-04 (Source: Directorate of Arecanut And Spices Development). The present study was undertaken to analyse cost and returns of chilli production in Amravati district. Achalpur tahsil in Amravati district have emerged as the most popular for chilli production because of best suited climate, soil, irrigation facilities, skill and intensive cultivation practices adopted by the farmers of this area. Objective of the Study: The present study on Economics of chilli production in India was undertaken to workout the economics of production of chilli. Methodlogy: For present study Achalpur tahsil from Amravati district was purposively selected. Total four villages and twenty farmers from each village i.e. 80 farmers were selected randomly as sample size. Data collected for study pertaining to the period 2009-10.Data collected by interviewing selected farmers by survey method with special designed schedule. Collected data then tabulated according to need and

INTRODUCTION Chilli (Capsicum annum L.) is most widely used and universal spice of India belongs to the "Solanaceae" family. The nutritive value of chilli is excellent, chillies are rich in vitamins, especially in vitamin A and C. [1]. Every 100 gms of dried pods yield about 160 calories of energy through 36 gms carbhydrates, 18 gms proteins, 16 gms fat, 480 mg calcium, 3.1 mg. phosphorous, 31 mg iron, 2.5 mg niacin, 640 I.U. vitamin 'A' and 40 mg vitamin 'C' [2]. India has immense potential to grow and export different types of chillies required to various markets around the world. India has produced around 1014.60 million tonnes of chilli with area of 654 million ha. and productivity 1551 kg/ha during 2005-06 (Source: Directorate of Arecanut and Spices Development). The most important chilli growing states in India are Andhra Pradesh (49%), Karnataka (15%) Maharashtra (6%) and Tamilnadu (3%) which constitute nearly 75 per cent of the total area under chilli. India's chilli exports are currently in bull stage and chillies exports from India are mostly to Srilanka, USA, Nepal, Mexico and Bangladesh. Among these countries USA, Srilanka and Mexico are the major importers of India's chillies. China has emerged as the major exporter in the world market and as a serious competitor in the international market for India. India exported 1,48,500
Corresponding Author:

P.P. Jagtap, Department of Agricultural Economics and Statistics, K.K. Wagh College of Agriculture Business Management, Nashik. (M.S.) India.

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purpose of study. Simple tabular analysis was made. To workout economics of chilli production, different cost concept such as cost 'A', cost 'B' and cost 'C' were used. RESULTS AND DISCUSSION The results obtained from the investigation are presented in Table 1 and 2. To workout gross returns, input-output ratio, net returns over various costs it is necessary to workout cost of cultivation of chilli crop. From Table 1, it is revealed that, per acre average cost 'A' of selected farmers was Rs.25523.80, Rs.27203.56 and Rs.34778.8 for small, medium and large farmers respectively. It was seen higher in large farmers followed by medium and then small farmers. Cost 'B' was Rs.36153.32, Rs.39029.97 and Rs.50510.19 for small, medium and large farmers respectively. It was higher in large farmers followed by medium and then small farmers. Cost 'C' estimateded was Rs.40541.72, Rs.42811.07 and Rs.53421.29 for small, medium and large farmers respectively. It was higher in large farmers followed by medium and then small farmers. Cost 'A' was found to be 62.96 per cent, 63.54 per cent and 65.10 per cent to cost 'C' for small, medium and large farmers respectively. In small farmers, major cost consuming items were rental value of land (24.51%), hired female labour (18.71%),
Table 1: Per acre cost of cultivation of chilli for selected farmers of different size group.(Units/Acre) Small

irrigation (13.81%) and plant protection chemicals (6.28%). In medium farmers, major cost consuming items were rental value of land (25.94%), hired female labour (18.72%), irrigation (13.90%) and plant protection chemicals (5.22%) and in large farmers, major cost consuming items were rental value of land (23.24%), hired female labour (18.72%), irrigation (13.90%) and plant protection chemicals (5.22%). The share of machineries to cost 'C' was (2.05%), (2.17%) and (2.02%) in case of small, medium and large farmers respectively and the cost of family male labour to cost 'C' was (5.49%), (4.48%) and (2.67%) for small, medium and large farmer respectively and the cost of family female labour to cost 'C' was (5.34%), (4.35%) and (2.78%) for small, medium and large farmers respectively. In all categories of farmer amoung variable cost, cost of human labour was seen as the major component of cost A [3] and rental value of land was seen the major component of cost C [4]. From Table 2 it is revealed that the average yield of chilli (wet) was 73.51 qtl., 80.97 qtl. and 83.73 qtl. per acre in small, medium and large farmers respectively and the chilli sold in the form of green and dry chilli. In case of green chilli the average qty. sold was 41.83 qtl., 43.65 qtl. and 43.81 qtl. per acre for the small, medium and large farmers respectively and the average price received was Rs.803.33, Rs.836 and Rs.874.22 per quintal for small,
Medium -------------------------------------------Quantity 15.27 114.48 2.82 0.60 8.94 93.14 70.58 41.33 17 19.17 26.63 Total Cost 1527 8013.60 846.00 1380 894.12 1133.51 1676.27 357.92 5950.00 2235.69 929.41 49.97 713.46 1496.91 27203.56 11104.34 722.07 39029.97 1917 1864.10 42811.07 % of cost 'C' 3.57 18.72 1.98 3.22 2.09 2.65 3.91 0.84 13.90 5.22 2.17 0.11 1.67 0.49 63.54 25.94 1.69 91.17 4.48 4.35 100 Large --------------------------------------------------Quantity 20.92 126.29 2.04 0.70 14.35 133.21 71.29 44.17 18 14.25 21.23 Total Cost 2092.00 8840.00 612.00 1610.00 4305.00 1621.16 1693.14 382.51 6300.00 3372.29 1081.32 56.66 898.16 1914.56 34778.80 12413.64 3317.75 50510.19 1425 1486.10 53421.29 % of cost 'C' 3.92 16.55 1.15 3.01 8.06 3.03 3.17 0.72 11.79 6.31 2.02 0.11 1.68 3.58 65.10 23.24 6.21 94.55 2.67 2.78 100

------------------------------------------S.N. 1 Particulars Hired human labour a) Male labour b) Female labour 2 1 4 5 Bullock labour Seed Manures Fertilizers N P K 6 7 8 9 10 11 12 13 14 Irrigation Plant protection chemicals Machineries and implements Land revenue and other cesses Depreciation Interest on working capital @12% for 6 m. Cost 'A' Rental value of land (1/6th G.V.P. L.R.) Interest on fixed capital @10% p.a. Cost 'B' Family human labour a) Male labour b) Female labour Cost 'C' Days Days Rs. 22.24 30.92 2224 2164.40 40541.72 5.49 5.34 100 Kg Kg Kg No. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. 81.92 72.64 38.17 16 996.97 1725.20 330.55 5600 2544.58 833.33 42.52 558.53 1410.72 25523.80 9936.02 693.50 36153.32 2.46 4.25 0.81 13.81 6.28 2.05 0.11 1.38 3.48 62.95 24.51 1.71 89.17 Days Days Pair days Kg Qtls 10.4 108.37 3.46 0.60 4.37 1040 7585.90 1038 1380 437.5 2.57 18.71 2.56 3.40 1.08 Units Quantity Total Cost % of cost 'C'

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Table 2: Economics of chilli production in different size group. (Units/Acre) Size Group ---------------------------------------------------------------------------------------------------------Sr. No. 1 Particulars Average yield (qtl/acre) chilli (wet) Quantity sold (qtl/acre) 1) Green chilli 2) Dry chilli 2 Average price received per quintal 1) Green chilli 2) Dry chilli 3 4 Gross returns (Rs.) Cost of cultivations (Rs.) Cost 'A' Cost 'B' Cost 'C' 5 Net returns over cost (Rs.) Cost 'A' Cost 'B' Cost 'C' 6 Input-output ratio at Cost 'A' Cost 'B' Cost 'C' 7 Cost of production Rs./Qtl Cost 'A' Cost 'B' Cost 'C' 347.21 491.81 551.51 335.97 482.03 528.73 415.37 603.25 638.02 1:2.34 1:1.66 1:1.48 1:2.46 1:1.71 1:1.56 1:2.15 1:1.48 1:1.40 34347.44 23717.92 19329.52 39722.30 27895.89 24114.79 40043.00 24311.61 21400.51 25523.80 36153.32 40541.72 27203.56 39029.97 42811.07 34778.8 50510.19 53421.29 803.33 3316.66 59871.24 836.00 3262.00 66925.86 874.22 3656.63 74821.80 41.83 7.92 43.65 9.33 43.81 9.98 Small 73.51 Medium 80.97 Large 83.73

medium and large farmers respectively. In case of dry chilli the average qty. sold 7.92 qtl., 9.33 qtl. and 9.98 qtl. per acre for small, medium and large farmers respectively and the average price received was Rs.3316.66, Rs.3262 and Rs.3656.63 per quintal for small, medium and large farmers respectively. The average gross returns were obtained was Rs.59871.24, Rs.66925.86 and Rs.74821.80 for small, medium and large farmers respectively. The average yield and gross returns per acre increased with the increase in size of the farms, because the large sized farmers had incurred more inputs in the production process of chilli crop. (Deshmukh2001). The average net returns over cost 'A', cost 'B' and cost 'C' obtained was Rs.34347.44, Rs.23717.92, Rs.19329.52 and Rs.39722.3, Rs.27895.89, Rs.24114.79 and Rs.40043, Rs.24311.61, Rs.21400.51 for small, medium and large farmers respectively. The average cost of production per quintal of chilli (wet) were worked out of be at cost 'A', cost 'B' and cost 'C' was Rs.347.21, Rs.491.81, Rs.551.51 for small farmers, Rs.335.97, Rs.482.03, Rs.528.73 for medium farmers and Rs.415.37, Rs.603.25, Rs.638.02 for large farmers respectively. The average input-output ratio at cost 'A', cost 'B' and cost 'C' were worked out to be 1:2.34, 1:1.66, 1:1.48 and 1:2.46, 1:1.71, 1:1.56 and 1:2.15, 1:1.48, 1:1.40 for small, 163

medium and large farmers respectively. Returns per rupee of investment were higher in medium and small size farmers group than large farmers group [5]. CONCLUSIONS The area uner chilli crop increased with an increase in the size of holdings. Per acre Cost C was higher in large farmers followed by medium and the small farmers group. The average yield and gross returns per acre increased with the increase in size of farms. There is need to develop the labour saving practices such as use of weedicides, improved tools for planting, harvesting etc. Appropriate extension method may be adopted to evaluate the farmers on optimum use of inputs. REFERENCES 1. Raju, K.V. and C.K. Luckose, 1991. Trends in area, production and exports of chillies from India. Agric. Sit. in India, 45: 767-772. Narayanan, S.S., S. Hedge, A.R. Sadananda and S. Chelliah, 1999. Commerce and utility considerations of chillies. Kisan World. 26(9): 73-75.

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African J. Basic & Appl. Sci., 4 (5): 161-164, 2012

3.

4.

Rajur, B.C., B.L. Patil and Basavraj, 2008. Economics of chilli production in Karnataka, Karnataka J. Agric. Sci., 21(2): 237-240. Desale, V.A., 2008. Production and marketing of red chillies (wet) in Dhule, Nandurbar district. Unpublished M.Sc. (Agri.) thesis submitted to M.P.K.V., Rahuri, Maharashtra.

5.

Deshmukh, M.S., 2001. Economics of production of chilli in Achalpur tahsil of Amravati district. Unpublished M.sc. (Agri.) thesis submitted to Dr. P.D.K.V., Akola, Maharashtra.

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