1Institute of Agribusiness Management, ANGRAU, Tirupati-517502, India
2Department of Agricultural Economics, S.V. Agricultural College-517502, India
3Department of Economics, S.V. University, Tirupati-517502, India
*Corresponding author: srikalamedikondu@gmail.com
Online published on 13 May, 2016.
The per hectare cost of cultivation of chillies for the period from 2005–06 to 2010–11 for Andhra Pradesh indicated that the operational costs ranged from 93, 332 in 2005–06 to 1, 84, 391 in 2010–11. Similarly, the total costs varied from 1, 09, 597 to 2, 21, 656 for the corresponding periods. Among the operational costs the percentage of labour component in the total costs increased from 35.13 in 2005–06 to 40.00 in 2010–11. Analogously, among fixed costs, rental value of owned land as a percent of total cost rose from 12.77 in 2005–06 to 15.79 in 2010–11. During the corresponding period, net returns increased from 66, 403 to 1, 63, 430 per hectare. The price spread analysis for the selected channel indicated that the producer received 64.45 per cent of consumer's price. The share of the wholesaler and the retailer worked out to 9.85 and 8.21 per cent respectively.
Highlights
• Net returns increased from 66.403 to 1, 63, 430 per hectare. Producers’ share in consumer rupee was 64.45 per cent. The share of the wholesaler and the retailer in consumers’ price were 9.85 and 8.21 per cent respectively.
Chilli, cost of cultivation, economic analysis, marketing channels, price spread
