aTamil Nadu Agricultural University, Coimbatore-641003, Tamil Nadu
bKrishna College of Agriculture and Technology, Usilampatti-625532, Tamil Nadu
Online published on 5 December, 2018.
The present study focuses on the economic analysis of value chain of red chilli in Thoothukkudi district of Tamil Nadu based on a survey of farmers and different market intermediaries. Price spread analyses and marketing efficiency indices were worked out. The cost of cultivation of red chilli per hectare was estimated to be Rs. 47277 with net returns of Rs. 7065. The household characteristics such as age, education, farming experience and occupation were found to influence the net return from cultivating of red chilli. Further, the yield responded significantly and positively to the utilization of human labor and application of plant protection measures. For international trade of red chilly, the exporters preferred producers who could meet the standards of the importing countries followed by timely supply, quality, volume and size in that order. The transportation cost, late payment for commission agents and poor storage facility with the processors are acting as barriers to efficiency in the value chain of red chilli.
