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
P.P. Jagtap, U.S. Shingane and K.P. Kulkarni
1 2

Department of Agricultural Economics and Statistics,

1

K.K. Wagh College of Agriculture Business Management, Nashik, India

Department of Agricultural Economics and Statistics, Shri Shivaji Agriculture College, Amravati, India
2

Abstract: Chilli (capscicum annuam L.) is most widely used and universal spice of India. The study was conducted in Achalpur tahsil
1:1.40 for small, medium and large farmers respectively.
Key words: Spice Chilli Cost of cultivation Economics of Production

INTRODUCTION tonnes of chilli valued Rs.807.75 crore in the year 2006-07 (http:ww
Chilli (Capsicum annum L.) is most widely used and In Maharashtra state area, production and productivity universal spice of India belo
2.5 mg niacin, 640 I.U. vitamin 'A' and 40 mg vitamin 'C' [2]. the most popular for chilli production because of India has immense po
of chilli with area of 654 million ha. and productivity 1551
kg/ha during 2005-06 (Source: Directorate of Arecanut and Objective of the Study: The present study on Economics Spices Development). Th
(15%) Maharashtra (6%) and Tamilnadu (3%) which
constitute nearly 75 per cent of the total area under chilli. Methodlogy: For present study Achalpur tahsil from India's chilli exports are cur
international market for India. India exported 1,48,500 Collected data then tabulated according to need and
Corresponding Author: P.P. Jagtap, Department of Agricultural Economics and Statistics,
K.K. Wagh College of Agriculture Business Management, Nashik. (M.S.) India.
 mravati, India
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 w

re in the year 2006-07 (http:www.assocham.org/prels/shownews.php?id=1306).

y universal spice of India belongs to the "Solanaceae" of chilli was around 90 million ha., 44 million tonnes family. The nutritive value of chilli is ex
cause of India has immense potential to grow and export different best suited climate, soil, irrigation facilities, skill and types of chillies required to va

omics Spices Development). The most important chilli growing of chilli production in India was undertaken to workout states in India are Andhra Prades

om India's chilli exports are currently in bull stage and chillies Amravati district was purposively selected. Total four exports from India are mostly to
ach 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 C

he nutritive value of chilli is excellent, chillies and 489 kg/ha respectively during 2003-04 (Source: are rich in vitamins, especially in vitamin A and
d types of chillies required to various markets around the intensive cultivation practices adopted by the farmers of world. India has produced around 1014.60

es in India are Andhra Pradesh (49%), Karnataka the economics of production of chilli.

rts from India are mostly to Srilanka, USA, Nepal, villages and twenty farmers from each village i.e. Mexico and Bangladesh. Among these c
nomic 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 respectiv

vitamins, especially in vitamin A and C. [1]. Directorate of Arecanut And Spices Development). Every 100 gms of dried pods yield about 160 calories
d. India has produced around 1014.60 million tonnes this area.

co and Bangladesh. Among these countries USA, 80 farmers were selected randomly as sample size. Srilanka and Mexico are the major impo
 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

of dried pods yield about 160 calories of The present study was undertaken to analyse cost energy through 36 gms carbhydrates, 18 gms proteins, 16

ka and Mexico are the major importers of India's Data collected for study pertaining to the period chillies. China has emerged as the major exp
r acre and input-output ratio at cost ‘C’ was 1:1.48, 1:1.56 and

ms carbhydrates, 18 gms proteins, 16 and returns of chilli production in Amravati district. gms fat, 480 mg calcium, 3.1 mg. phosphorous, 31 mg iron,

. China has emerged as the major exporter in the 2009-10.Data collected by interviewing selected farmers world market and as a serious competitor
, 3.1 mg. phosphorous, 31 mg iron, Achalpur tahsil in Amravati district have emerged as

et and as a serious competitor in the by survey method with special designed schedule.
purpose of study. Simple tabular analysis was made. irrigation (13.81%) and plant protection chemicals (6.28%). To workout economics
irrigation (13.90%) and plant protect
RESULTS AND DISCUSSION and in large farmers, major cost consuming items were
rental value of land (23.24%), hired female labour (18.72%), The results obtained from the investigation are irrigation (13.90%) and pla
higher in large farmers followed by medium and then small cost ‘C’ [4].
farmers. Cost 'C' estimateded was Rs.40541.72, Rs.42811.07 From Table 2 it is revealed that the average yield of and Rs.53421.29 for sm
62.96 per cent, 63.54 per cent and 65.10 per cent to cost 'C' green chilli the average qty. sold was 41.83 qtl., 43.65 qtl. for small, medium and la
value of land (24.51%), hired female labour (18.71%), Rs.803.33, Rs.836 and Rs.874.22 per quintal for small,
Table 1: Per acre cost of cultivation of chilli for selected farmers of different size group.(Units/Acre)
Small Medium Large
------------------------------------------- -------------------------------------------- ------------------------------------------
S.N. Particulars Units Quantity Total Cost % of cost 'C' Quantity Total Cost % of cost 'C' Quantity Total Cost % of cost 'C'
1 Hired human labour
a) Male labour Days 10.4 1040 2.57 15.27 1527 3.57 20.92 2092.00 3.92
b) Female labour Days 108.37 7585.90 18.71 114.48 8013.60 18.72 126.29 8840.00 16.55
2 Bullock labour Pair days 3.46 1038 2.56 2.82 846.00 1.98 2.04 612.00 1.15
1 Seed Kg 0.60 1380 3.40 0.60 1380 3.22 0.70 1610.00 3.01
4 Manures Qtls 4.37 437.5 1.08 8.94 894.12 2.09 14.35 4305.00 8.06
5 Fertilizers
N Kg 81.92 996.97 2.46 93.14 1133.51 2.65 133.21 1621.16 3.03
P Kg 72.64 1725.20 4.25 70.58 1676.27 3.91 71.29 1693.14 3.17
K Kg 38.17 330.55 0.81 41.33 357.92 0.84 44.17 382.51 0.72
6 Irrigation No. 16 5600 13.81 17 5950.00 13.90 18 6300.00 11.79
7 Plant protection chemicals Rs. - 2544.58 6.28 - 2235.69 5.22 - 3372.29 6.31
8 Machineries and implements Rs. - 833.33 2.05 - 929.41 2.17 - 1081.32 2.02
9 Land revenue and other cesses Rs. - 42.52 0.11 - 49.97 0.11 - 56.66 0.11
10 Depreciation Rs. - 558.53 1.38 - 713.46 1.67 - 898.16 1.68
11 Interest on working capital @12% for 6 m. Rs. - 1410.72 3.48 - 1496.91 0.49 - 1914.56 3.58
Cost 'A' Rs. - 25523.80 62.95 - 27203.56 63.54 - 34778.80 65.10
12 Rental value of land (1/6 G.V.P. – L.R.)
th
Rs. - 9936.02 24.51 - 11104.34 25.94 - 12413.64 23.24
13 Interest on fixed capital @10% p.a. Rs. - 693.50 1.71 - 722.07 1.69 - 3317.75 6.21
Cost 'B' 36153.32 89.17 - 39029.97 91.17 - 50510.19 94.55
14 Family human labour
a) Male labour Days 22.24 2224 5.49 19.17 1917 4.48 14.25 1425 2.67
b) Female labour Days 30.92 2164.40 5.34 26.63 1864.10 4.35 21.23 1486.10 2.78
Cost 'C' Rs. 40541.72 100 42811.07 100 53421.29 100
mics of chilli production, different cost In medium farmers, major cost consuming items were concept such as cost 'A', cost 'B' and cost 'C' were used.
otection chemicals (5.22%)

d plant protection chemicals (5.22%). presented in Table 1 and 2. The share of machineries to cost 'C' was (2.05%), (2.17%) T

r small, medium and large farmers chilli (wet) was 73.51 qtl., 80.97 qtl. and 83.73 qtl. per acre respectively. It was higher in large farmers followed by
nd large farmers respectively. In small and 43.81 qtl. per acre for the small, medium and large farmers, major cost consuming items were rental
A', cost 'B' and cost 'C' were used. rental value of land (25.94%), hired female labour (18.72%),

ies to cost 'C' was (2.05%), (2.17%) To workout gross returns, input-output ratio, net and (2.02%) in case of small, medium and large farmers returns ove

higher in large farmers followed by in small, medium and large farmers respectively and the medium and then small farmers. Cost 'A' was found to be chi
consuming items were rental farmers respectively and the average price received was
medium and large farmers returns over various costs it is necessary to workout cost respectively and the cost of family male labour to cost 'C' of cultivation of

mers. Cost 'A' was found to be chilli sold in the form of green and dry chilli. In case of
male labour to cost 'C' of cultivation of chilli crop. From Table 1, it is revealed was (5.49%), (4.48%) and (2.67%) for small, medium and that, per acre avera
all, medium and that, per acre average cost 'A' of selected farmers was large farmer respectively and the cost of family female Rs.25523.80, Rs.27
f family female Rs.25523.80, Rs.27203.56 and Rs.34778.8 for small, medium labour to cost 'C' was (5.34%), (4.35%) and (2.78%) for and large farmers r
and (2.78%) for and large farmers respectively. It was seen higher in small, medium and large farmers respectively. In all large farmers followed
tively. In all large farmers followed by medium and then small farmers. categories of farmer amoung variable cost, cost of human Cost 'B' was Rs.36153.32
t of human Cost 'B' was Rs.36153.32, Rs.39029.97 and Rs.50510.19 for labour was seen as the major component of cost ‘A’ [3] small, medium and large f
st ‘A’ [3] small, medium and large farmers respectively. It was and rental value of land was seen the major component of
Table 2: Economics of chilli production in different size group. (Units/Acre)
Size Group
-----------------------------------------------------------------------------
-------------------------------------
Sr. No. Particulars Small Medium
1 Average yield (qtl/acre) chilli (wet) 73.51 80.97
Quantity sold (qtl/acre)
1) Green chilli 41.83 43.65
2) Dry chilli 7.92 9.33
2 Average price received per quintal
1) Green chilli 803.33 836.00
2) Dry chilli 3316.66 3262.00
3 Gross returns (Rs.) 59871.24 66925.86
4 Cost of cultivations (Rs.)
Cost 'A' 25523.80 27203.56
Cost 'B' 36153.32 39029.97
Cost 'C' 40541.72 42811.07
5 Net returns over cost (Rs.)
Cost 'A' 34347.44 39722.30
Cost 'B' 23717.92 27895.89
Cost 'C' 19329.52 24114.79
6 Input-output ratio at
Cost 'A' 1:2.34 1:2.46
Cost 'B' 1:1.66 1:1.71
Cost 'C' 1:1.48 1:1.56
7 Cost of production Rs./Qtl
Cost 'A' 347.21 335.97
Cost 'B' 491.81 482.03
Cost 'C' 551.51 528.73
Large
83.73

43.81
9.98

874.22
3656.63
74821.80

34778.8
50510.19
53421.29

40043.00
24311.61
21400.51

1:2.15
1:1.48
1:1.40

415.37
603.25
638.02
medium and large farmers respectively. In case of dry chilli
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,
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,
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
medium and large farmers respectively. Returns per rupee the average qty. sold 7.92
CONCLUSIONS
The area uner chilli crop increased with an increase in medium and large farme
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S. Chelliah, 1999. Commerce and utility 1:2.46, 1:1.71, 1:1.56 and 1
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rmers respectively. The average yield the size of holdings. Per acre Cost ‘C’ was higher in large and gross returns per acre increased with the increase in

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e the large sized farmers had The average yield and gross returns per acre increased incurred more inputs in the production process of chilli with
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ed was Rs.34347.44, improved tools for planting, harvesting etc. Appropriate Rs.23717.92, Rs.19329.52 and Rs.39722.3, Rs.27895.89, extension metho
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s.21400.51 for on optimum use of inputs.
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