An economic assessment of Naga king chilli cultivation in Kohima district of Nagaland

Introduction

Agriculture plays an important role in the economy of Nagaland, where a large proportion of the rural population depends on farming and allied activities for livelihood. Among the various horticultural crops cultivated in the state, Naga King Chilli (Capsicum chinense), popularly known as Bhut Jolokia or ghost pepper, occupies a unique position due to its exceptional pungency, high market demand, and economic value. Indigenous to the North-Eastern region of India, particularly Nagaland, Assam, and Manipur, the crop is internationally recognized as one of the hottest chillies in the world, exceeding one million Scoville Heat Units (SHU). In Nagaland, Naga King Chilli is widely cultivated across many districts, including leading areas such as Peren district, Dimapur district, Mon district and Kohima district, where the agro-ecological conditions favour its growth. Traditional cultivation methodsoften using jhum (shifting cultivation) or mixed cropping systems, with indigenous soil and pest-management practicesremain common among farmers. Among the various districts, Naga King Chilli is widely cultivated in Kohima district because of the favourable agro-climatic conditions such as moderate temperature, high rainfall and fertile soil rich in organic matter. The crop serves as an important source of income for rural households, especially small and marginal farmers due to its premium price in domestic and export markets. In addition to its use in traditional cuisine, the chilli is utilised in food processing, pharmaceuticals, natural pest repellents, and defense-related products because of its high capsaicin content. Naga King Chilli (Capsicum chinense), locally called Raja Mircha, received a Geographical Indication (GI) tag in 2008. This boosted its reputation across India. Naga King Chilli exports are growing, but its Revealed Comparative Advantage (RCA) is less than 1, meaning its share in India's total exports is still negligible. Despite its economic importance, the cultivation of Naga King Chilli is associated with several production-related challenges. Assessing the economic viability of Naga King Chilli cultivation in Kohima district is therefore crucial to understanding its profitability, improving resource utilization, sustainability, and role in enhancing farmers' socio-economic status. In this context, the present study was undertaken to analyze the cost of cultivation, cost of production, and profitability of Naga King Chilli cultivation among different categories of farmers in Kohima district, Nagaland. The study also attempts to suggest suitable measures for improving productivity and profitability.

Objectives of the Study

1. To estimate the cost and returns of Naga King Chilli cultivation in the Kohima district. 2. To analyze the profitability and benefit-cost ratio of the Naga King Chilli for farmers.

Research Methodology

The procedures that were followed to collect data have been detailed as: Primary data collected from selected farmers for the agricultural year 2025-2026. Subsequently, the secondary data was collected with the help of various journals, government records, reports, websites and related sources.

The study was conducted in Kohima district of Nagaland.

The sub-district Chiephobozou was purposively selected on the basis of highest area under Naga King Chilli cultivation. Three villages were randomly selected from the Chiephobozou district. Multistage stratified random sampling procedure was selected for the present investigation to select ultimate unit of the sample. Primary data were collected from sample farmers through a structured interview schedule. The farmers were categorized into marginal, small, and medium farm groups. Tabular analysis, cost concepts, and marketing analysis techniques were used for data interpretation. Secondary data was collected with the help of journals, articles, websites, documents and related sources. Where:

Analytical tools used

• Gross Return (Benefit) = Total income obtained from the crop/product • Total Cost = Total expenditure incurred in production (fixed + variable costs)

Results and Discussion

The results show that the total cost of cultivation per hectare increases with the size of the farm. Medium farmers incurred the highest cost of cultivation (₹94,500/ha), followed by small farmers (₹89,200/ha) and marginal farmers (₹84,000/ha). Among the various cost components, human labour constituted the largest share of total cultivation cost for all categories of farmers. This is because the cultivation of Naga King Chilli requires intensive labour for operations such as transplanting, weeding, staking, and harvesting. Expenditure on farmyard manure and fertilizers was also significant, as these inputs are necessary to maintain soil fertility and improve crop productivity. Medium farmers generally used slightly higher quantities of inputs, which explains the higher cultivation cost in this category.

The findings indicate that although the cost of cultivation is relatively high, Naga King Chilli remains a high-value crop in Nagaland, offering substantial income potential to farmers due to its premium market price. The results show that the total cost of cultivation per hectare increases with the size of the farm. Medium farmers incurred the highest cost of cultivation (₹94,500/ha), followed by small farmers (₹89,200/ha) and marginal farmers (₹84,000/ha). Among the various cost components, human labour constituted the largest share of total cultivation cost for all categories of farmers. This is because the cultivation of Naga King. Chilli requires intensive labour for operations such as transplanting, weeding, staking, and harvesting.

Expenditure on farmyard manure and fertilizers was also significant, as these inputs are necessary to maintain soil fertility and improve crop productivity. Medium farmers generally used slightly higher quantities of inputs, which explains the higher cultivation cost in this category.

The findings indicate that although the cost of cultivation is relatively high, Naga King Chilli remains a high-value crop in Nagaland, offering substantial income potential to farmers due to its premium market price. www.extensionjournal.com The results indicate that the total cost of cultivation (Cost C2) was highest for medium farmers (₹99,100/ha) followed by small farmers (₹92,700/ha) and marginal farmers (₹87,800/ha). The higher cost for medium farmers can be attributed to greater use of inputs such as fertilizers, plant protection chemicals and hired labour.

The difference between Cost A1 and Cost C2 highlights the significant contribution of family labour and land value in the overall cost structure of Naga King Chilli cultivation. These cost concepts help in assessing the profitability and economic viability of the crop and are widely used in agricultural economics studies to estimate farm income and returns. Table 3 shows that the cost of production per kilogram decreases with an increase in farm size. Medium farmers recorded the lowest cost of production (₹49.55/kg), followed by small farmers (₹51.50/kg) and marginal farmers (₹53.21/kg).

The lower cost of production among medium farmers can be attributed to higher productivity and better utilization of resources, which reduces the cost per unit of output. In contrast, marginal farmers produce smaller quantities, which increases the per unit cost of production.

The findings indicate that improving productivity and efficient resource utilization can significantly reduce the cost of production and enhance the profitability of Naga King Chilli cultivation in the study area. The results from Table 4 show that Naga King Chilli cultivation is highly profitable in the Kohima district. Medium farmers obtained the highest gross return (₹8,00,000/ha), mainly due to higher yield levels compared to marginal and small farmers.

The net return was also highest for medium farmers (₹7,00,900/ha) followed by small farmers (₹6,27,300/ha) and marginal farmers (₹5,72,200/ha). The higher returns among medium farmers can be attributed to better input use, improved crop management practices, and higher productivity.

The benefit-cost ratio was greater than 1 for all categories of farmers, indicating that Naga King Chilli cultivation is economically viable in the study area. The highest B:C ratio (8.07) was observed among medium farmers, suggesting more efficient utilization of resources compared to marginal and small farmers. Overall, the findings indicate that Naga King Chilli is a high-value cash crop with strong income-generating potential for farmers in Kohima district.

Summary and Conclusion

The present study entitled "An Economic Assessment of Naga King Chilli Cultivation in Kohima District of Nagaland" was undertaken to analyze the economics of Naga King Chilli cultivation in the study area.

The study revealed that Naga King Chilli cultivation is a profitable enterprise in Kohima district. The total cost of cultivation per hectare was estimated to be ₹84,000 for marginal farmers, ₹89,200 for small farmers, and ₹94,500 for medium farmers, indicating that the cost of cultivation increased with increase in farm size. Among the various cost components, human labour accounted for the highest share of total cost, reflecting the labour-intensive nature of Naga King Chilli cultivation. The analysis further showed that the cost of production per kilogram decreased with increase in farm size due to higher productivity and better utilization of resources by medium farmers. Similarly, the benefit-cost ratio was found to be higher among medium farmers compared to marginal and small farmers, indicating better economic efficiency and profitability among larger farm categories.

Based on the findings, the study suggests that government support in the form of subsidies, training programs and institutional credit can help farmers reduce production costs and improve profitability.

Overall, the study concludes that Naga King Chilli possesses strong economic potential in Kohima district of Nagaland. However, appropriate technological, institutional, and policy interventions is necessary to ensure sustainable production and improved livelihood opportunities for farmers.

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