Cost structure and profitability of green chilli production in Nandurbar district of Maharashtra

Introduction

Chilli (Capsicum annuum L.) is an important commercial spice and vegetable crop belonging to the family Solanaceae. It is widely consumed in fresh and processed forms and is valued for its characteristic pungency, colour and flavour. Besides its culinary importance, chilli is also recognized for its nutritional and medicinal properties due to the presence of vitamins, minerals, antioxidants and capsaicin. India possesses a wide diversity of chilli varieties and has an important position in the production and export of chilli. During 2023, chilli was cultivated over 18.03 lakh hectares globally, producing about 58.22 lakh tonnes, with an average productivity of 3,229 kg/ha. India ranked first in chilli production with 27.82 lakh tonnes, followed by Bangladesh, Thailand, China and Ethiopia. In India, green chilli cultivation has shown considerable growth, with area increasing from 140.0 thousand hectares in 2013-14 to 438.7 thousand hectares in 2023-24, while production increased from 1,687.3 thousand tonnes to 4,670.8 thousand tonnes during the same period. The average productivity in 2023-24 was 10.6 MT/ha. (Source: Horticulture Statistics Unit, Department of Agriculture and Farmers Welfare). Among the Indian states, Madhya Pradesh recorded the highest green chilli production of 1,039.19 thousand tonnes, followed by Karnataka (694.22 thousand tonnes), Bihar (490.81 thousand tonnes) and Andhra Pradesh (450.02 thousand tonnes) during 2023-24. Maharashtra accounted for 43.77 thousand hectares of area and 438.38 thousand tonnes of production with an average productivity of 10.02 MT/ha. Major chilli-growing districts of Maharashtra include Nagpur, Sangli, Kolhapur, Nanded, Amravati, Dhule and Nandurbar. In Nandurbar, the average area under chilli cultivation during 2012-13 to 2023-24 was 253.90 hectares, with an average production of 138.72 tonnes and productivity of 1.94 tonnes/ha. (Source: Horticulture Statistics Unit, Department of Agriculture and Farmers Welfare). The present study was therefore undertaken to examine the economics of production of Kharif green chilli (Capsicum annuum L.) in Nandurbar district of Maharashtra, with particular emphasis on costs and returns in green chilli.

Methodology

For the present investigation, Nandurbar district of Maharashtra was purposively selected owing to the importance of green chilli cultivation in the district. The study was conducted using a multistage sampling procedure for the selection of the study area and respondents. Primary data were collected from selected green chilli growers through personal interviews using a pre-tested and structured schedule. A total of 90 farmers were considered for the study and classified into small, medium and large farm-size groups, comprising 30 farmers in each category. The data pertaining to the agricultural year Kharif-2025. Study were collected and systematically tabulated for analysis. The economics of green chilli cultivation was assessed using different cost concepts, namely Cost A, Cost B and Cost C. Gross returns, net returns and input-output ratio were worked out to evaluate the profitability of green chilli cultivation. The collected data were analysed using tabular analysis and suitable statistical techniques to draw meaningful conclusions regarding the economics of production.

Analysis of data

Cost of cultivation

The estimation of costs and returns, the various components of costs were estimated by using standard cost concepts as under. (Cost A, Cost B and Cost C.)

Results and discussion

Per hectare cost of cultivation of green chilli

The cost of green chilli cultivation were estimated on a per hectare basis for different farm size groups and are presented in Table 5.8. The analysis revealed considerable variation in the cost of cultivation, among small, medium and large farms, mainly due to differences in resource utilization, scale of operation and management practices. At the overall level, the total cost of cultivation, measured by Cost 'C', was estimated at ₹3,35,879.45 per hectare. Cost 'A' and Cost 'B' amounted to ₹2,06,811.67 and ₹3,11,396.79 per hectare, respectively. Among the individual cost components, manure constituted the major expenditure, amounting to ₹79,549.42 per hectare and accounting for 23.68 per cent of Cost 'C'. Followed by expenditure on seedlings, which amounted to ₹29,959.47 per hectare (8.92 per cent), hired female labour at ₹19,401.74 (5.78 per cent) and machine power at ₹17,338.80 (5.16 per cent). The relatively higher expenditure on manure indicates the importance of organic nutrient application in green chilli cultivation, whereas the substantial expenditure on seedlings reflects the intensive planting-material requirement of the crop.

Among the different farm-size groups, the small farms recorded a Cost 'C' of ₹3,28,106.19 per hectare. The major expenditure items on small farms were manure, amounting to ₹76,041.24 per hectare, followed by seedlings at ₹30,274.31, hired female labour at ₹16,108.25 and machine power at ₹14,561.86. The medium farms incurred a Cost 'C' of ₹3,30,883.57 per hectare. Among the major components, manure accounted for the highest expenditure at ₹84,070.80 per hectar, followed by seedlings at ₹29,410.00, hired female labour at ₹18,075.22 and machine power at ₹15,199.12. The comparatively higher expenditure on manure and hired labour contributed to the overall cost of cultivation on medium farms. The large farms recorded the highest Cost 'C' of ₹3,48,648.59 per hectare. The major cost components were manure at ₹78,536.23 per hectare, hired female labour at ₹24,021.74, machine power at ₹22,255.43 and seedlings at ₹30,194.09. Large farms also incurred relatively higher expenditure on plant protection chemicals and micronutrients. This pattern indicates more intensive use of mechanization, hired labour and crop-protection inputs on larger holdings. The per quintal cost of cultivation was ₹1,791.35 on small farms, ₹1,781.32 on medium farms and ₹1,828.37 on large farms, with an overall average of ₹1,800.34 per quintal. Thus, although medium farms incurred a slightly higher total cultivation cost than small farms, they recorded the lowest cost per quintal, indicating comparatively efficient conversion of production expenditure into output. Large farms, despite obtaining the highest production, recorded the highest per quintal cost because the increase in cultivation expenditure was relatively greater than the corresponding increase in output. Overall, the findings indicate that green chilli cultivation is a highly remunerative enterprise under the prevailing production conditions. Higher investment in improved production technologies, balanced nutrient management, efficient irrigation and timely crop protection measures substantially enhanced productivity and profitability. The similar study indicated higher economic efficiency on small farms, whereas Jagtap et al. (2012) [1] Rajur et al. (2008) [2] and Jorwar et al. (2018) [3] reported the highest input-output ratio and net returns on small farms, followed by large farms and medium farm respectively. The cost and returns from green chilli cultivation across different farm-size groups were estimated and are presented in Table 5.9. The result indicated that the gross return was highest among large farmers (₹6,25,855.07/ha), followed by small farmers (₹6,19,278.35/ha), while medium farmers recorded the lowest gross return (₹5,84,690.27/ha). The higher gross return among large farmers was mainly associated with their higher production of 190.69 q/ha, compared with 183.16 q/ha for small and 185.75 q/ha for medium farmers. Therefore, the null hypothesis (H 0: Green chilli cultivation in Nandurbar district was not profitable) was rejected, while the alternative hypothesis (H 1: Green chilli cultivation in Nandurbar district was profitable) was accepted. Hence, it was concluded that green chilli cultivation was a profitable and economically feasible enterprise in the study area during the study period. The Similar Finding reported by Desale ( 2008) [4] study on economics of production and marketing of chilli in Dhule and Nandurbar district. Deshmukh (2001) reported the result on Economics of production of chilli in Achalpur tahsil of Amravati district Unpublished M.sc. (Agri.) thesis submitted to Dr. P.D.K.V., Akola, Maharashtra.

Conclusion

The study revealed that green chilli cultivation in Nandurbar district was a profitable and economically viable enterprise. The overall cost of cultivation under Cost 'C' was ₹3,35,879.45 per hectare, against a gross return of ₹6,09,941.23 per hectare, resulting in a net return of ₹2,74,061.78 per hectare. The average production was 186.53 quintals per hectare, with an average cost of ₹1,800.34 per quintal. Among the farm-size groups, large farmers obtained the highest production and gross returns, whereas small farmers recorded the highest net returns and B:C ratio, indicating comparatively better economic efficiency. The overall B:C ratios were 2.95, 1.96 and 1.82 under Cost A, Cost B and Cost C, respectively. Since the B:C ratios were greater than unity across all farm-size groups, green chilli cultivation was found to be economically feasible and remunerative in the study area. The study therefore indicates that efficient resource utilization, improved production practices, balanced nutrient management and timely crop management can further enhance the profitability of green chilli cultivation in Nandurbar district.

References

1. Jagtap PP, Shingane US, Kulkarni KP. Economics of chilli production in india. African journal of basic and Applied Science. 2012;4(5):161-164.
2. Rajur BC, Patil BL, Basavraj. Economics of chilli production in Karnataka. Karnataka J. Agric. sci.. 2008;21(2):237-240.
3. Jorwar RM, Sarap SM, Chavan VU. Economics of production and marketing of chilli in Amravati district. Journal of Pharmacognosy and Phytochemistry. 2018;7(2):310-316.
4. Desale VA. Economics pf production and marketing of green chilli in Dhule district M.Sc (Agri) thesis (unpublished) submitted to M.P.K.V., Rahuri, Maharashtra. 2008.
5. Deshmukh MS. Economics of production of chilli in Achalpur tahsil of Amravati district Unpublished M.sc. (Agri.) thesis submitted to Dr. P.D.K.V., Akola, Maharashtra. 2001. How to cite this article: Pawara DS, Bondar U, Shinde V, Deshmukh B, Patil K, Kadam A, et al. Cost structure and profitability of green chilli production in Nandurbar district of Maharashtra. International Journal of Biology Sciences. 2026;8(9):101-104. doi: https://www.doi.org/10.33545/2664992