Asian Journal of Agricultural Extension, Economics & Sociology

Background: Dry chilli is an important commercial crop in Tamil Nadu, but farm returns are influenced by cultivation costs, marketing arrangements and price variability. This study assessed the production economics, marketing channels and major constraints in dry chilli cultivation in Virudhunagar District.

Methods: Virudhunagar District was selected purposively, and primary data were collected from 40 growers selected through simple random sampling in the study area. Costs, yield, prices, gross income and net income were estimated on a per-hectare basis. Marketing costs, margins, price spread and the producer’s share of the consumer price were examined for two channels. Garrett’s ranking technique was used to prioritise production, marketing and intermediary constraints.

Results: The total cultivation cost was ₹59,364.97 per hectare, comprising fixed costs of ₹6,394.83 and variable costs of ₹52,970.14. Average yield was 15.44 quintals per hectare. At a farm-gate price of ₹5,470 per quintal, gross and net incomes were ₹84,456.80 and ₹25,091.83 per hectare, respectively. Channel I reported a producer’s share of 74.19% and a price spread of 25.81%, whereas Channel II reported 81.14% and 18.86%, respectively. Labour scarcity, inadequate credit and disease were the main production constraints. Price fluctuation was the leading marketing constraint, while inadequate storage was the foremost problem reported by intermediaries.

Conclusion: The shorter marketing channel reported a higher producer share and lower price spread; however, the Channel II producer net-price calculation requires reconciliation before the efficiency difference can be confirmed.