An Economic Analysis of Chilli Cultivation in Azamgarh District of Eastern Uttar Pradesh

Abstract

Indian horticulture sector contributes about 33% to the agriculture Gross Value Added (GVA) making very significant contribution to the Indian economy. National Horticulture Mission (2005-06) has spurred the production and productivity of horticultural crops. Productivity of horticultural crops has increased by about 38% during 2004-05 to 2019-20 (2nd Advance Estimates). Increase in demand for horticultural produce due to greater health awareness, rising income, export demands and increasing population poses the challenge for further increasing the production and productivity of horticultural crops. The issue of climate change has thrown up greater uncertainties and risks, further imposing constraints on production systems. Therefore, present study is an attempt on “An Economic analysis of Chilli cultivation in Azamgarh District of Eastern Uttar Pradesh” with specific objectives of socio economic status, costs and returns and problems associated in production of Chilli crop. The district and blocks were selected purposively and then total 4 villages and the finally 80 respondents were selected on probability proportion to their population for the collection of primary information to meet the objectives of the study. To meet the objectives tabular analysis was employed. The result of socio-economic of the respondents data showed, mostly farmers (33.75 per cent) belonged to 31-45 year age group, 85.00 per cent were literate, the average size of family was found to be 9.90 member, 60 per cent respondents involve in farming sector, average size of the land 2.56 per hectare, cropped area under Rabi season crops was highest and a significant area was under chilli cultivation, 48.75 per cent respondents used diesel engine for irrigation and about half of the respondents having annual income 2.00 to 3.00 lakhs. The average cost of cultivation estimated to be Rs. 1,79,017.40/ha. and cost of cultivation was negatively related with the size of holding. The variable costs was more in large size of farm than other categories, because of greater investment on costs like human labour, plant protection chemicals and fertilizers. The net profit per hectare of chilli production was Rs. 113320.00. The net profit per hectare for large farms was greater than medium, marginal and small farms. It was observed from the study that benefit cost ratio was highest (1:66) under the marginal farms followed by medium (1:64), large farms (1:63) and small farms (1:60) Overall benefit cost ratio observed to be (1:63).Two marketing channels were identified in the marketing of chilli in the study area. Channel-1 (Producer – commission agent – Wholesaler – retailer- consumer), Channel II (Producer– village merchant - Wholesaler- retailer- consumer). Producer's share in consumer's rupee was found to be 71.03, and 66.68 percent, marketing efficiency 1.78 and 2.00 in channel – I and channel -II respectively. High cost of labour charge, Unavailability of timely loan and price fluctuation in market were the major problems faced by chilli growers.