ECONOMIC ANALYSIS OF PRODUCTION, MARKETING AND PRICE VOLATILITY OF CHILLIES IN WARANGAL DISTRICT OF TELANGANA
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Date
2019-10-19
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UNIVERSITY OF AGRICULTURAL SCIENCES, GKVK BENGALURU
Abstract
The present study was conducted to examine economic feasibility, marketing
problems and price volatility of dry chillies in Warangal district of Telangana with a sample
of ninety farmers comprising of small, medium and large farm size categories. Results
indicated that the average chilli cultivated area of small, medium and large farms were
1.71, 4.41 and 4.31 acres, respectively. Cost of cultivation for small, medium and large size
farms were Rs. 1,59,269/ha, Rs. 1,50,269/ha and Rs. 1,71,909/ha, respectively with major
cost on human labour. Net returns realized by small, medium and large size farms were Rs.
86,079/ha, Rs. 91,656/ha and Rs. 99,120/ha, respectively; B:C ratios were 1.54, 1.61 and
1.58 in the same order. Majority of dry chilli producers (61.11%) marketed their produce
through Channel-I, i.e. Producers-CA-Wholesalers-Retailers-Consumers and total
marketing cost was Rs. 2,410/q. Nearly 1/3rd of farmers marketed through Channel-II
(same as Channel I except CA) and marketing cost was Rs. 2,054/q. Producers’ share in
consumers’ rupee in Channel-I (57.73%) was lower than channel-II (62.12%). ARIMA
model results indicated that prices of Khammam and Warangal market are moving in same
direction as of actual values. Further analysis revealed that prices of dry chilli in Khammam
market had unidirectional influence on Warangal market. Major production constraints
identified were damage due to pests and diseases, scarcity of labour and FYM. Major
marketing constraints were lower prices, long distance market and higher marketing cost.