Marketing of dry chillies in karnataka –a management appraisal
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Date
2007
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UAS Dharwad
Abstract
Chilli crop is grown largely for the production of dry chillies, which is an important
spice crop of India. This study was intended to make an attempt to identify the problems
related to marketing of dry chillies, to develop the grade standards for dry chillies, extent of
integration among the major dry chilli markets of Karnataka, analyzing management
appraisal of chilli processing nits and extent of value addition to dry chillies. The both
primary ands secondary data was collected and analyses by employing tabular presentation
technique, index ranking, trend analysis, time series analysis, co-integration technique,
nominal protection co-efficient and markov chain model.
The investment pattern of dry chilli processing units revealed that, there was direct
relationship between the total capital investment and the size of the unit in all the selected
units, working capital was more because of heavy amount required on procurement of raw
materials and the finished products marketed through two channels. These units manufacture
range of products like chilli powder, sambar powder and turmeric powder. Retailers share
was higher in total marketing margin as compared to other intermediaries in the chain. The
co-integration analysis indicated that the selected markets are integrated at different orders.
The growth rates of both quantity and value of exports of dry chilies found to be increased
significantly. The nominal protection coefficient (NPC) indicated that India is more
competitive in the export of dry chillies owing to its suitable agro-climatic conditions and
cheap labour. The USA and Malaysia were found to be highly loyal markets for Indian chilli
as indicated by the retention of their previous share of dry chillies exports from India. The
farmers opined that the rain uncertainty, lack of labour availability, lack of input availability
and among the marketing problems wide price fluctuations, high cost on packaging and
transportation cost are the major problems opined by the farmers.