STUDY ON MARKET DYNAMICS OF BYADGI CHILLI IN KARNATAKA
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Date
41243
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Publisher
University of Agricultural Sciences GKVK, Bangalore
Abstract
Chilli crop is majorly grown as a spice for culinary preparation and
for extraction of oleoresins. Byadgi chilli is assigned GI tag in the year
2010.This study aims at identification of chilli acreage shifts, supply
chain of chillies, business opportunities and extent of integration among
the major dry chilli markets of Karnataka. Primary data from 56 farmers
of Dharwad and Haveri sistricts using sampling technique. Further, data
from 8 processors, 40 dealers and one oleoresin company were obtained
for detailed analysis of chilli marketing channels. The Percentage share
of chilli area in total cropped area ranged from 7.59 in Byadgi to 36 in
Kundgol taluk. Secondary data for the period 2001/2 to 2009/10 showed
that chilli area declined by 2.82% CAGR in Dharwad, while Haveri had
positive growth of 1.57%. Cotton a substitute crop registered significant
growth of 29.34% and 26.83% respectively in Dharwad, and Haveri. Shift
in chilli area and production in Karnataka was 29% and 35%,
respectively, between 2001/02 and 2009/10 period. Malaysia and Sri
Lanka were found to be loyal markets for Indian chilli as indicated by the
transition probability matrix. Byadgi chilli is one of the commodities with
low seed replacement ratio which can be increased through company
seed supply. The cold storage units and oleoresin industries were
benefited by Byadgi chilli due to wide market demand. The average price
spread in chilli marketing was found to be Rs.2023/q. The major
production problems of farmers were: rain uncertainty, pest and disease
outbreak, lack of labour and input availability. Wide price fluctuations,
high cost of packaging and transportation were the major marketing
problems of chilli farmers.