Quantity And Quality Mapping Of Chillies In Khammam And Warangal districts of Andhra Pradesh
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Date
2004
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ACHARYA N.G. RANGA AGRICULTURAL UNIVERSITY RAJENDRANAGAR, HYDERABAD
Abstract
The project titled “Quality and Quantity Mapping of chillies in Khammam and Warangal districts of Andhra Pradesh” was carried out for ITC- ILTD.
CHILLIES or Cayenne, was though, at one time, Americas most important contribution to the
world of spices, chilli is today one of India's major export attractions. An annual plant, chilli
comes in a wide variety of shapes, sizes, colors and in different degrees of pungency. It is thus
variously called capsicum, paprika, pimento, sweet pepper, red pepper, cayenne pepper and bird's
eye chilli depending on the type of chilli and the manner in which it is prepared and used. An
indispensable culinary spice in several parts of the world, Indian chilli is grown largely in Andhra
Pradesh, Maharashtra, Karnataka, Madhya Pradesh, Tamilnadu and in a number of other states as
a round-the-year crop. The medium pungent 'Sannam' and the mildly pungent 'Mundu' chillies are
internationally recognized as the finest in quality.
Chilli is one of the spice crops in India. Indian chilli is exported to USA, Sri Lanka, Bangladesh,
the Middle East and the Far East. Products are available as powder and oleoresins. India also
offers high capsaicin content chilli with or without stalks and with clipped stalks, and fresh and
dried capsicum. Due to its hot nature it is adored and consumed by the gentry who love "Spicy
Indian Food “
The project was taken up with the following objectives a) To map chillies growing areas
in Khammam and Warangal b) To know the production, yield patterns, price trends and
farmers realization price c) To study the cost of cultivation of chillies and know the cost
benefit ratio of two alternate crops. d) To study the value chain of chillies. e) To suggest
procurement strategy.. These objectives proved the company with distinct competitive
advantage in terms of Quality, quantity, market prices, source and time of procurement
along with the procurement strategy in the districts of Khammam and Warangal.
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The project data was collected from sources like Directorate of Agricultural Statistics,
Khairatabad, office of Joint Director of Agriculture, Offices of Agricultural Officers (A.O),
Research Stations and farmers in the areas of Khammam and Warangal. .A survey was carried
out at the farmer’s level in Khammam and Warangal districts. The aim of this study was to find
out the cost of cultivation of chillies along with two alternate crops and their cost benefit ratios
at the farmer’s level. The project also aimed at studying the value chain of chillies.
The study revealed that the cost of cultivation varied based on factors like soil type (red/black),
varieties grown (hybrid /local), irrigation facilities and the land holding of the farmer. The cost
of cultivation of chillies has inverse relation with land holding. The economies of scale seem to
exist. This was due to the farmers application of fertilizers and chemicals decreased with
increase in land holding and also the cattle pair engaged for the day could work more then 2-3
acres of land at the same price given for an acre.
Cost of hybrid chillies was about 30305/- rupees per acre
Cost of local chillies was about 24380/- rupees per acre
The value chain of hybrid chillies begins after the chillies are being harvested. At this
stage the cost of cultivation is around Rs 26100 or Rs 1373.684 per quintal.
The chillies after they are picked, they are dried on cement floor and the moisture content
is reduced to 15%. An average bag of chillies after harvesting weighs 60 kg .This when dried for
10-15 days, the weight of the bag of chillies comes to 35 kg. Thus there’s loss in moisture and
weight. Cost per kg of chillies after drying becomes Rs 23.603/kg.
The infected /spotted white coloured or discoloured chillies are separated from the whole lot
dried. This graded chilli fetches good price in the market. Due to grading there loss of about
12.5% .The poor quality of chillies separated called “tallu” is sold at a very low price. Cost per kg
of chillies after grading is Rs 27.26/kg.The filling of chillies in gunny bags, transportation,
loading and unloading and weighing operations result in the total cost of 28.24 per kg
The farmer pays commission of Rs1.35/Kg and finally it when added the total cost
incurred by the farmer on the one kg of chillies is worked out to Rs 29.63/ kg.
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The various marketing channels existing are
Farmers-----wholesalers------retailers------customers
Farmers -----big traders-----firms (process chillies) ------customers (chillies power)
Farmers -----big traders-----firms (oleoresin extraction)
Farmers-----companies
The total area and production of chillies in Khammam is 23634 ha area and 87222 tonnes of
production and in Warangal its 24525 ha and 61312.0 tons. The average per acre yield in the
two districts is worked out to 16qtls of local variety and 19qtls for hybrids. The company by
entering into procurement into these areas can obtain regular supplies of chillies as there rapid
fluctuations in chillies cultivating area every year. The percentage of production from the two
districts is around 23 % of A.P “s production. The application of chemicals in these areas is
very less compared to that of Guntur. Thus the company can get better quality of chillies at
reasonable prices.
The company before entering into the procurement in these areas must have seasonal data of the
area and production estimation, so that they can schedule the amount of chillies to be procured
each day and avoid risk of purchasing at high prices
The company should enter into direct procurement and direct farm procurement in areas of
Khammam and Warangal.The Company should go for contract farming in areas of
Bhadrachalam of Khammam district as it contributes to about 29%area and 30% of the total
production of the district. The area is highly fertile, as it is on the banks of the river Godavari
and size of land holdings of the farmers is large thus providing ideal conditions for contract
farming.
The company can educate farmers on the terms of quality, variety by direct procurement.
Description
Keywords
Quantity And Quality Mapping Of Chillies In Khammam And Warangal districts of Andhra Pradesh