SIGNIFICANCE OF VALUE CHAIN ANALYSIS FOR CHILLI - THE CASE OF KARNATAKA CHILLI MARKET


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Authors

  • SANDEEP K. T* and NAVITHA THIMMAIAH Department of Agribusiness Management, Institute of Development Studies, University of Mysore, Mysuru -570006

Keywords:

Chilli, Value addition, value chain analysis, Market arrival analysis

Abstract

Value chain analysis for chilli in Karnataka revealed that fixed costs formed a smaller proportion of the
total cost of dry chillies processing (ranging from 13.17% in the case of medium size processing units to16.98%
in the case of large units). However, large units had relatively greater proportion of fixed costs as they mechanized
most of the stages of processing in order to reap economies of scale. Among the various components of
variable costs, raw material (i.e. the dry chillies) accounted for the highest percentage, ranging from 13.39% in
respect of large processors to 18.82% in the case of small size processors.In all the three value chains
identified, the value addition cost in chain 1 (VAC 1) was the highest with Rs.380 and the lowest is in case of
VAC2 with Rs.267. Among the various persons involved in the value chain, the wholesaler and processor
played an important role; the former being important in grading, packing and transportation; and the latter
being crucial in converting raw chillies into value-added products. The retailer was only involved in the task of
moving the produce (raw or processed) to the consumer.

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Submitted

23-02-2023

Published

31-03-2020

How to Cite

SANDEEP K. T* and NAVITHA THIMMAIAH. (2020). SIGNIFICANCE OF VALUE CHAIN ANALYSIS FOR CHILLI - THE CASE OF KARNATAKA CHILLI MARKET. The Journal of Research ANGRAU, 48(1), 46-52. https://epubs.icar.org.in/index.php/TJRA/article/view/133695

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