A STUDY ON ENTREPRENEURSHIP IN VALUE CHAIN OF CHILLI IN WARANGAL DISTRICT OF TELANGANA
| dc.contributor.advisor | Radhika, P. | |
| dc.contributor.author | Ganesh Sagar, D. S. | |
| dc.date.accessioned | 2023-12-21T15:43:47Z | |
| dc.date.available | 2023-12-21T15:43:47Z | |
| dc.date.issued | 2023-01-28 | |
| dc.description.abstract | India is the world’s largest producer, consumer and exporter of chillies contributing to 51 percent of the world production. Indian chilli is famous in the world for its colour and high pungency levels. In Telangana, chilli is a major commercial crop and in Warangal district it was cultivated in an area of 12999 ha during the year of 2020 – 2021. As chilli is an important commercial crop, Warangal district has been identified as a potential district for developing chilli crop based micro enterprises under One District One Product (ODOP) of MoFPI. The following objectives of the current study are: 1. To map the existing value chain of chilli in Warangal district. 2. To assess the potential for processing in chilli value chain in Warangal district of Telangana. 3. To examine the scope for establishment of FPOs for chilli in study area. 4. To evolve a viable business plan for FPOs or startups for enhanced value -added products of chilli. For selecting the sample of farmers for the study, four mandals in which chilli production was high in the district were taken into consideration. From each mandal, 3 villages, where chilli cultivated area was more was chosen and from each village 10 farmers were selected based on purposive sampling to include a representation of marginal, Name of the author : D S GANESH SAGAR Title of the Project Report : A STUDY ON ENTREPRENEURSHIP IN VALUE CHAIN OF CHILLI IN WARANGAL DISTRICT OF TELANGANA Degree to which it is submitted : MASTER OF BUSINESS ADMINISTRATION (AGRIBUSINESS MANAGEMENT) Faculty : AGRICULTURE Department : SCHOOL OF AGRIBUSINESS MANAGEMENT Major Advisor : Dr. P. RADHIKA University : PROFESSOR JAYASHANKAR TELANGANA STATE AGRICULTURAL UNIVERSITY Year of submission : 2022 small and large farmers (marginal farmers: ,2.5 acres; small farmers: 2.5 to 5 acres; large farmers: >5 acres). Thus, a total of 120 farmers, 20 Intermediaries and 10 processing units were selected for the study. In 2019-20, Telangana ranked second in terms of chilli area, production and productivity with 2.98 lakh acres, 3.06 lakh metric tonnes and 1545 Kg per acre, respectively in India. The chilli seed varieties which are marketed by various companies in the study area fall under majorly five segments based on pungency, color and yield. They are Teja, Warangal Chapata, Byadgi (HPH-5531), Byadgi (HPH-694), Byadgi (HPH 2043) and Devnur Deluxe (DD). Most of the farmers are cultivating two different chilli varieties in a season. None of the farmers in the study area are involved in processing of chilli, except for drying of chilli, which can be considered as a primary processing activity. More than half of the farmers are showing keen interest to involve in processing of chilli, especially into chilli powder, if financial support in the form of the subsides and loans and marketing support is provided The major trade in chilli in Enumamula market yard was handled by commission agents. None of the market intermediaries i.e., Commission agents, buyers and retailers are involved in processing of chilli. The value addition they carry out is by grading, storing and redrying the produce. Price fluctuations in the market is the major constraint experienced by different stakeholders in the value chain of chilli. The other constraints faced by them are mismatch between demand and supply, high marketing cost, non-availability of quality raw material, limited operating capital, transportation cost, lack of storage facilities and non-availability of labour. In the study area around five FPOs are functioning which are mainly into supply of inputs to the farmers. Among the respondent farmers very few farmers are members of these FPOs, however around 60 per cent of the respondent farmers are willing to join a FPO, if it takes up activities of chilli procurement, trading and processing. With little encouragement farmers can be made to join FPOs and if proper support is provided, they are willing to take up processing of chilli into chilli powder. The value chain of chilli shows that each participant in the chain adds certain value. The value created by farmer is around Rs 4,570 per quintal and the returns earned by farmer per acre is around Rs 91,400 where as that of other players that is commission agents/ buyers/ wholesalers and processors is Rs 800, Rs 1,800 and Rs 3,000 per quintal. There is a huge scope for processing of chilli into chilli powder and other value added products like chilli pickles, chilli sauces, chilli oil, chilli colour and chilli pungency extraction. Chilli colour, pungency and oil are having huge demand in the export market. There are currently no colour, pungency or oil extraction units in the study area. Hence, FPOs or startups can be encouraged to take up such processing activities. Handholding FPOs established for chilli by experts/ institutions in the field to make them take up processing of chilli will benefit chilli farmers in the study area. Since, the establishment cost of chilli processing unit is not too huge, FPOs can be supported to take up processing. India is the world’s largest producer, consumer and exporter of chillies contributing to 51 percent of the world production. Indian chilli is famous in the world for its colour and high pungency levels. In Telangana, chilli is a major commercial crop and in Warangal district it was cultivated in an area of 12999 ha during the year of 2020 – 2021. As chilli is an important commercial crop, Warangal district has been identified as a potential district for developing chilli crop based micro enterprises under One District One Product (ODOP) of MoFPI. The following objectives of the current study are: 1. To map the existing value chain of chilli in Warangal district. 2. To assess the potential for processing in chilli value chain in Warangal district of Telangana. 3. To examine the scope for establishment of FPOs for chilli in study area. 4. To evolve a viable business plan for FPOs or startups for enhanced value -added products of chilli. For selecting the sample of farmers for the study, four mandals in which chilli production was high in the district were taken into consideration. From each mandal, 3 villages, where chilli cultivated area was more was chosen and from each village 10 farmers were selected based on purposive sampling to include a representation of marginal, Name of the author : D S GANESH SAGAR Title of the Project Report : A STUDY ON ENTREPRENEURSHIP IN VALUE CHAIN OF CHILLI IN WARANGAL DISTRICT OF TELANGANA Degree to which it is submitted : MASTER OF BUSINESS ADMINISTRATION (AGRIBUSINESS MANAGEMENT) Faculty : AGRICULTURE Department : SCHOOL OF AGRIBUSINESS MANAGEMENT Major Advisor : Dr. P. RADHIKA University : PROFESSOR JAYASHANKAR TELANGANA STATE AGRICULTURAL UNIVERSITY Year of submission : 2022 small and large farmers (marginal farmers: ,2.5 acres; small farmers: 2.5 to 5 acres; large farmers: >5 acres). Thus, a total of 120 farmers, 20 Intermediaries and 10 processing units were selected for the study. In 2019-20, Telangana ranked second in terms of chilli area, production and productivity with 2.98 lakh acres, 3.06 lakh metric tonnes and 1545 Kg per acre, respectively in India. The chilli seed varieties which are marketed by various companies in the study area fall under majorly five segments based on pungency, color and yield. They are Teja, Warangal Chapata, Byadgi (HPH-5531), Byadgi (HPH-694), Byadgi (HPH 2043) and Devnur Deluxe (DD). Most of the farmers are cultivating two different chilli varieties in a season. None of the farmers in the study area are involved in processing of chilli, except for drying of chilli, which can be considered as a primary processing activity. More than half of the farmers are showing keen interest to involve in processing of chilli, especially into chilli powder, if financial support in the form of the subsides and loans and marketing support is provided The major trade in chilli in Enumamula market yard was handled by commission agents. None of the market intermediaries i.e., Commission agents, buyers and retailers are involved in processing of chilli. The value addition they carry out is by grading, storing and redrying the produce. Price fluctuations in the market is the major constraint experienced by different stakeholders in the value chain of chilli. The other constraints faced by them are mismatch between demand and supply, high marketing cost, non-availability of quality raw material, limited operating capital, transportation cost, lack of storage facilities and non-availability of labour. In the study area around five FPOs are functioning which are mainly into supply of inputs to the farmers. Among the respondent farmers very few farmers are members of these FPOs, however around 60 per cent of the respondent farmers are willing to join a FPO, if it takes up activities of chilli procurement, trading and processing. With little encouragement farmers can be made to join FPOs and if proper support is provided, they are willing to take up processing of chilli into chilli powder. The value chain of chilli shows that each participant in the chain adds certain value. The value created by farmer is around Rs 4,570 per quintal and the returns earned by farmer per acre is around Rs 91,400 where as that of other players that is commission agents/ buyers/ wholesalers and processors is Rs 800, Rs 1,800 and Rs 3,000 per quintal. There is a huge scope for processing of chilli into chilli powder and other value added products like chilli pickles, chilli sauces, chilli oil, chilli colour and chilli pungency extraction. Chilli colour, pungency and oil are having huge demand in the export market. There are currently no colour, pungency or oil extraction units in the study area. Hence, FPOs or startups can be encouraged to take up such processing activities. Handholding FPOs established for chilli by experts/ institutions in the field to make them take up processing of chilli will benefit chilli farmers in the study area. Since, the establishment cost of chilli processing unit is not too huge, FPOs can be supported to take up processing. | |
| dc.identifier.uri | https://krishikosh.egranth.ac.in/handle/1/5810204151 | |
| dc.language.iso | English | |
| dc.pages | 89 | |
| dc.publisher | PROFFESSOR JAYASHANKAR TELANGANA STATE AGRICULTURAL UNIVERSITY | |
| dc.relation.ispartofseries | D10978 | |
| dc.sub | Agricultural Business Management | |
| dc.theme | MBA | |
| dc.these.type | M.B.A. | |
| dc.title | A STUDY ON ENTREPRENEURSHIP IN VALUE CHAIN OF CHILLI IN WARANGAL DISTRICT OF TELANGANA | |
| dc.type | Thesis |