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KARNATAKA LINGAYAT EDUCATION SOCIETY`S
JAGADGURU TONTADARYA COLLEGE GADAG
A FINAL REPORT OF MINOR RESEARCH PROJECT
UNDER UGC XI PLAN
ENTITLED
MARKETING OF CHILLY IN NAVALGUND TALUKA
IN THE STATE OF KARNATAKA
Submited by
Dr.Mohan. Sangappa. Annigeri. M.com. Ph.D
Submitted Through
The College Development Council
Karnataka University Dharwad
To
THE UNIVERSITY GRANT COMMISSSION
South western Regional office Banglore
OCTOBER 2014
2
DECLARATION
I here by declare that the Minor Research Project Report Entitled
“MARKETING OF CHILLY IN NAVALGUND TALUKA IN THE
STATE OF KARNATAKA” has been undertaken by me for the Minor
Research Project. I have completed this work and also declare that this Minor
Research Project has not been previously formed the basis for the award to the
candidate of any Degree, Diploma, Associateship,Fellowship or similar title in
any Indian Universities
Place:Gadag Signature of the
Date:28th
october 2014 Principal
Investigator
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K.L.E Society`s
JAGADGURU TONTADARYA COLLEGE GADAG.
CERTIFICATE
This is to certify that the Minor Research Project report entitled
“MARKETING OF CHILLY IN NAVALGUND TALUKA IN THE
STATE OF KARNATAKA” submitted is a record of research work done by
Dr.Mohan.Sangappa.Annigeri, Associate Professor and Co-ordinator for Post
Graduation Department of studies in Commerce is a original work of Minor
Research Project. This report has not been Previously formed the basis for the
award to the candidate of any Degree, Associateship, Fellowship or Diploma
similar title in any Indian Universities.
Place:Gadag Regestrator \
Principal
Date:
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ACKNOWLEDGEMENT
I Express my Deep Sentiments of Reverences to his Holiness Sri
Manjunath Swami of Dharmasthala for his holy Blessingness on all the
occasions.
I sincerely express my Heartfull Gratitude to University Grants
Commission, South Western Regional office, Banglore for providing me an
opportunity to undertake a Minor Research Project under U.G.C. office for their
kind help and Co-operation to undertake this Minor Research Project Work.
I also thankful to the Director of college Development Council,
Karnataka University Dharwad for their kind help and Co-operation to
undertake this Minor Research Project Work.
I am highly indebted to our K.L.E Society`s beloved Chairman
Dr.Prabakar Kore and all the Board Members of K.L.E Society Belgaum for
their encouragement.
I am extending my sincere gratitude towards my respected Principals,
Dr. S.B.Havanur, Prin.S.S.Yankanchi and Prin.C.Lingareddy of J.T.College
Gadag who are great source of Inspiration to me.
I wish to Place on record my Deep sense of Gratitudeness to the
Honerable Secretary and office Suprintendent of APMC Annigeri and also to
Sri B.I.Hulkund of District Statistical Dept. of Dharwad and Farmer`s of
Navalgund Taluk for their help and co-operation in Providing the valuable
Research Material Information Timely.
I am ever thankful to Dr.B.C.Bannur Principal and Life member,
K.L.E.Society`s G.H.college Haveri. Prof:G.P.Kudari, Dr.S.V.Madivale,
Prof:S.H.Narisinnavar, Prof: S.V.Kundgoal, Prof:C.S.Angadi of J.T.college
Gadag and Dr.S.S.Halageri of G.H. College Haveri for their kind
encouragement and Moral support, Valuable advice and Co-operation during
the Period of my Project Work.
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I owe Debt of Gratitude to Sri B.M.Lakkammnavar Librarian of J.T.
college Gadag and also the Librarian of Karnataka University Dharwad ,
Agriculture University Dharwad for Providing the reference facilities for the
said Project work and I am also thankfull to Sri U.S.Tuppad office Supritendent
of J.T.college Gadag for his co-operation help and encouragement. Furthur I am
extremely gratefull to the respected collegues, friends and all teaching and non-
teaching staff of J.T.college Gadag for their co-operation, suggestions and
encouragements.
Finally, I extend my deepest gratitude to my wife Smt.Pushpalata and
my son Achyutprasad and Daughter [Dr] Tejashwini and my relatives for their
constsnt moral support in completing this work. Lastly, I am Immeasurably
thankful to all others who have directly and indirectlys helped me in my Project
work.
Place:Gadag Dr.Mohan.S.Annigeri. M.com , Ph.D
Date: Asso.Professor and P.G.Co-ordinator,
Dept. of Commerce,
K.L.E.Society`s
J.T. College Gadag
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SL.No CONTENTS Page Nso.
I INTRODUCTION
II ECONOMIC DIMENSIONS OF CHILLY-
GLOBAL ,NATIONAL AND REGIONAL
PERSPECTIVES
III PROFILE OF CHILLY-GROWING FARMERS
COVERED BY THE STUDY
IV PRODUCTION DIMENSIONS OF CHILLY IN
NAVALGUND TALUKA.
V MARKETING DIMENSIONS OF CHILLY IN
NAVALGUND TALUKA
VI SUMMARY OF FINDINGS, CONCLUSIONS
AND SUGGESTIONS
VII BIBLIOGRAPHY
VII QUESTIONNAIRE
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LIST OF TABLES
Sl no Table no Title of the table Page
no
1 2.1 Area, Production yield per and Hectare of Chilly in India
2 2.2 Area, Production yield per and Hectare of Chilly in
Karnataka
3 2.3 Area, Production yield per and Hectare of Chilly in
Dharwad district
4 2.4 Area, Production yield per and Hectare of Chilly in
Navalgund Taluka
5 3.1 Distribution opf large and small farmers in the two Hobli
villages of Navalgund Taluk of Dharwad District
6 3.2 Age composition of Farmers
7 3.3 Educational Status of Farmers
8 3.4 Size of the farmers family
9 3.5 Caste wise distrubution of farmers
10 3.6 Occupational Pattern of Farmers
11 3.7 Income status of Farmers
12 3.8 Fixed Assets of Farmers
13 3.9 Live stock Assets of the farmers
14 3.10 Vichicles of the Farmers
15 3.11 Owned and Rented lands of Farmers
16 3.12 Irrigated and Non-irrigated lands of Farmers
17 3.13 Types of land cultivated by Farmers
18 3.14 Crop Pattern of Navalgund Province
19 3.15 Sale Procedure of Regulated Produce
20 3.16 Market Cess, Licence fees and other fees
21 3.17 Income and Expenditure and Savings
22 3.18 Arrival of major Agricultural Produce
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23 3.19 Market Intermediaries
24 3.20 Production of Dry Chilly, sales quantity and value
25 3.21 Market Intermediaries
26 3.22 Age Composition of Intermediaries
27 3.23 Educational Status
28 3.24 Caste Affiliations of Market Intermediaries
29 3.25 Duration of Working as Market Intermediaries
30 3.26 Services Rendered to Farmers by the Market Intermediaries
31 3.27 Main Buyers of Dry Chillies
32 4.1 Area, output and yield per hecter of Dry chilly in
Navalgund taluk province
33 4.2 Cost of Tilling and managing
34 4.3 Cost of sowing chilly
35 4.4 Cost of cleaning chilly
36 4.5 Cost of Harvesting chilly
37 4.6 Cost of seeds
38 4.7 Cost of rental for Hired Land
39 4.8 cost of wages of regular workers
40 4.9 Ownership of Land
41 4.10 Current value of Land
42 4.11 Value of Agricultural Implements
43 4.12 Loans obtained by Farmers
44 4.13 Working capital- Source & Extent of Amount used
45 4.14 Ranks indicating Preference for Chilly crop by Farmers
46 4.15 Used of innovative methods of cultivation of Chilly crop
47 4.16 Market Trends and price changes influenced the chilly
production
48 4.17 Family Members employed in chilly farming
49 4.18 Employment of Hired workers
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50 4.19 Wage rates for Hired Workers
51 5.1 Assembling of Chilly
52 5.2 Storage of Chilly
53 5.3 Adequacy of storage facility
54 5.4 Packing and packaging cost
55 5.5 Reasons for local sales
56 5.6 Preference for sales of Dry chilly
57 5.7 Satisfaction about the channel of distribution
58 5.8 Cost of grading
59 5.9 Own and hired vehicles for transport
60 5.10 Annual cost of transport
61 5.11 Sources of market information
62 5.12 Marketing Finance – use of the Sources
63 5.13 Marketing cost of Dry chilly
64 5.14 Reasons for Dis-satisfaction of present pricing system
65 5.15 Suggestions for better price for Dry chilly
66 5.16 Price of Dry chilly 2005-06 to 2009-10
67 5.17 Marketing problems [No. of farmers]
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11
12
13
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CHAPTER-I
INTRODUCTION
Marketing of agricultural goods in India assumes greater significance as
the major portion of the population is engaged in agriculture related activities.
The recent developments in the field of agriculture like High Yield Variety
Programme (HYVP) besides contributing to green revolution have further
increased significance of agricultural marketing. Today, agricultural sector is
not only supplying the food requirements, but also contributing to the foreign
exchange of the country. Like in the case of marketing of other kinds of goods,
marketing of agricultural goods too is a business venture, covering all activities
in the flow of goods and services from the producer-sellers to the ultimate
buyers. Thus, in the process of agricultural marketing, the farmer-sellers are on
the supply side, the ultimate buyers are on the demand side and in between these
too, the various intermediaries are functioning. Thus, agricultural marketing is a
process which starts with the decision to produce a farm commodity and it
involves all aspects of market structure or system, both functional and
institutional, through which goods move from producer to consumer‟.1
The
development of the country is closely linked with the development of
agriculture. The development of agriculture is dependent upon the facilities
available for marketing of agricultural produce. 'The marketing of agricultural
products is a matter of great interest to the farmer, the consumer and the
middleman. To the farmer, it provides the channel of communication between
him and the society and gives him continuous information about demand for his
products. The consumer views it as a means of supplying his need since
marketing helps in raising the standard of living of the people by satisfying the
multitude' of needs and desires of consumers. The middleman depends upon it
for his livelihood.2
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In a developing country like India, marketing of agricultural goods is also
responsible for the well-being of the farmers. The better facilities and
opportunities for farmers to undertake marketing of their produce, the greater
the interest for them to increase the production. Thus, switching over to
commercial farming from subsistence farming is possible.
Agricultural marketing is expected to promote the welfare of the farmers'
class in particular, and that of the consumers in general. So,the marketing of
agricultural activities are switching over to commercial forming from
subsistence forming. However, over the period, Indian agricultural marketing is
criticized for its operational and pricing inefficiencies. The present study is a
modest attempt in understanding the glaring and latent operational problems in
the functioning of a regional regulated market area of Navalgund Taluk.
CHILLI:
The major cash crop undertaken for the present study is Chilli. The brief
history and origin of chilli is highlighted with its importance among the cash
crops.
Chilli (Capsicum annuum L.; Capsicum frutescene L.), also called red
pepper‟, is an important cash crop in India and is grown for its pungent fruits,
which are used both green and ripe (the latter in the dried form) to impart
pungency to the food. As a condiment, it has become indispensable in every
Indian home. It is also used medicinally, and in chutnies and pickles. The
pungency is due to the active principle `capsicin‟ contained in the skin and the
septa of the fruit. The world consumption of chillies and paprika is going up due
to the increasing popularity of ethnic foods. The increased availability of
oleoresins and spice oils of chilli has also enhanced its consumption in various
food preparations. India is the largest producer of chillies in the world but its
production pattern is highly erratic.
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The chilli crop is grown from almost the sea-level up to an altitude of
1,500 metres in tropical and subtropical regions, with an annual rainfall of 60-
150 cm. In India, chillies are now grown in almost all parts. At present, Andhra
Pradesh, Karnataka, Maharashtra, Orissa, Rajasthan, Tamil Nadu and West
Bengal account for 85.8 per cent of the total area and 89.3 per cent of the total
output of chillies in the country. Chilli is cultivated in Guntur, Warangal,
Khammam, Krishna, Hyderabad, Pundur, Nizamabad, Cuddapah, Rajahmundry
and Nellore districts in Andhra Pradesh; Hubli, Gadag and Byadgi in Karnataka;
and Nashik, Ahmednagar, Sholapur, Aurangabed, Nanded, Amravati and
Lasalgaon in Maharashtra. In Punjan and Haryana, chilli is cultivated in
Amritsar, Nabha, Patiala, Sunam and Samna; in Uttar Pradesh in Bareily and
Khurja; and in Tamil Nadu in Tuticorin and Salem. In India, chilli is being
cultivated mostly as a rain-fed crop therefore its yield fluctuates from year to
year and is generally poor. Recently, its production has been taken up in
irrigated areas in non-traditional states like Punjab and Uttar Pradesh also where
the yield has been better which is likely to boost its output in the coming years.
Productivity Enhancement
The scope for increasing the area under production of cash crops is
limited. Hence the bulk of the future increase in cash crops production have to
come primarily from land saving technologies - a combination of high yielding
plant type, standard crop management practices and balanced crop nutrition.
The needed measures for improving cash crops productivity involve:
i. Delineating efficient zone for different cash crops through crop ecological
zoning.
ii. Adequate supplies of quality seeds of improved varieties and hybrids.
iii. Bringing more cash crops area under protective irrigation.
iv. Integrated nutrient supply and management.
v. Efficient crop management practices starting from adoption of proper crop
rotation
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vi. Suitable soil and moisture conservation practices
vii. Timely planting
viii. Adequate plant stands through adjustment in seed rate and thinning
ix. Timely Weed management
x. Need based crop protection
xi. Balanced crop nutrition and
xii. Timely harvest and safe storage
Market and Price Trends of Cash Crops
The prices of cash crops in seventies and eighties tended to decline
sharply in the market soon after harvest and rise inordinately a few months later
in the lean season. The difference seemed to be more than the holding cost of
storage, interest and reasonable profit with the result that both the farmers and
the consumers were the sufferers. “Fixing minimum support price for cash crops
and entrusting public agencies like National Agricultural Cooperative
Marketing Federation (NACMF) with effective market intervention is essential
to ensure protection of returns and encourage adoption of modern crop
production technology by the oil seed farmers”.
Chilli as Cash Crop
Chilli is grown all over India. In 2003, it was grown on an area of 945.5
thousand ha with an annual production of 4.5 million in fresh weight
(FAOSTAT-Agriculture). India is one of the largest producers of pimento chili
in the world, accounting for over 46% and 44% of its total area and production,
respectively. However, its per ha productivity is quite low at 4.7 t in fresh
weight compared to China, Turkey, and Pakistan at 25.6 t/ha, 8.9 t/ha, and 7.9
t/ha, respectively. India exported 349 thousand t of fresh weight equivalent chili
worth US$62 million. This leaves a net annual per capita availability from
domestic sources at about 3.9 kg in fresh weight. Despite the importance of chili
in the production system of certain states and Indian diet, no comprehensive
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study is available on the issues and constraints at its various food chain levels.
This study aimed to fill this information gap by conducting interviews and
surveys from different stakeholders involved in the food chain, and analyzing
secondary data related to its production, consumption, and distribution. The
overall per ha yield of chili in the study area was about 10 t/ha in fresh weight.
This estimate was higher than the national average as well as the estimate at 7.5
t/ha. This may be due to the concentration of our survey in major chili growing
areas.
Utilization
Among the various spices produced in the country, the consumption was
highest for chillies. It was consumed either in green or powder forms. Very little
other form of processed chilli products were used in India. When all consumed
chilli items were converted into fresh weight, about two-thirds of the
consumption by chilli farmers, one-half by non-chili farmers and one-third by
urban consumers were in chilli powder form. Chilli farm families consumed
about one-fifth of the fresh chili weight in green fresh form, while the ratio for
the non-chilli growing farm and urban families was about one fourth. The share
in the consumption of other chili forms and products were relatively small in
India.
Marketing and Trade
The cash crops have a larger market in the present day trend. These cash
crops are sold like hot cakes in the market. The demand for these cash crops is
everlasting because they are consumable goods. Hence there is a dire need for
the cash crops there is a scarcity of these products due to draught during last
three years. Hence the study proves that the market is wide open for the by
products of the cash crops. The advertisement world is also fetching lot of
money from the sale of by products of these cash crops. The export quality
products are always attracting the foreign market today. The marketing season
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for the chilli is normally starts from November to February.
The Buyers and the Location
The sale of Chilli take place at the nearest assembling market at the
farmers own location where dealers buy the same. The dealers may be village
merchants, itinerant dealers and agents of wholesale merchants and in some
cases the agents of oil crushing concerns. The oil milling units, pressing of chilli
units play an important role where there are no regulated markets. They collect
Chilli crop from the villages either through their own agents or through village
merchants by giving them financial help to run their business.
The village merchants collect seeds from their own village or nearby
villages. They carry on money lending business by way of advancing small
amounts to the cultivation with the understanding the receiver would dispose of
the produce to them or through them only.
The Chilli crop producers generally prefer to take their produce to the
market for sale but their indebtedness or financial obligations compel them to
sell through the village merchants from whom they receive financial help. The
Chilli crop producers decide either to sell the produce at the village or take it to
the market on the basis of
i. Quantity of produce
ii. The distance from the market
iii. Transport facilities
iv. Market Charges
v. Price at Village level and
vi. Immediate need for cash
Chilli Crops markets fall under 3 groups
i. Primary markets
ii. Secondary markets and
iii. Terminal markets
Primary markets are weekly bazaars dealing in small scale retail sales.
20
Secondary markets are mendis organs which provide permanent place for the
daily transactions to take place with some amenities for sellers and buyers.
Terminal markets are urban centres. They get stocks from producing centres as
well as from important markets. The regulated markets are managed by the
market committees.
Transport, Packing and Distribution
Chilli crops are brought in pods to the markets or they are filled in gunny
bags. They are brought to the market by carts or tractors or lorries on the same
day or a previous day of the sale. The sellers take the produce to the shops of
commission agents with whom they had prior financial commitments. The
commission agents are not changed once they are selected. Auctions are
conducted in the market premises.
Pricing of Chilli
The buyers first examine the produce by collecting a few samples from
different parts of the bulk. They consider the condition of the seeds, percentage
of damage, immature seeds and the oil content in the seeds etc before giving the
quotation.
Method of Sales
The major method of sale and pricing of Dry chilli are
i. Open system
In non regulated markets the produce is kept open for inspection and sales are
affected under mutual agreement between the buyer and the seller.
ii. Auction System:
The produce offered is exhibited for inspection in the regulated markets
too. The sales in the assembling markets are affected through commission
agents. The buyers examine the quality of the produce and offer their quotations
21
to the commission agents who sell the produce to the highest bidder. All the
regulated markets adopt the open auction system.
Weighment, Delivery and Payment
The produce is weighed in the presence of the seller after the price is
settled. The Chilli is subjected to cleaning after the price is settled. The cleaned
Chilli is winnowed once, twice or thrice to separate dust, small pebbles and
immature and broken Chilli. The Chilli is then filled into gunny bags supplied
by the buyers and weighed in the presence of the agent of the buyer.
The seller receives the sale proceeds (Usually on the same day) from the
commission agent after allowing deductions towards the prescribed market
charges. Sometimes the buyers and sellers have to wait up to 15 days as per the
customs of the market.
Objectives of the Study
The present research study has the following objectives.
1. To study the production dimensions of the cash crops in general and chilli
in perticular in the study area.
2. To examine the production problems and production cost of seeds and
chilli of the farmers covered by the study.
3. To study the marketing process of chilli and the market problems of
chillies farmers.
4. To assess the role of market intermediaries and the APMCs in the
marketing of chillies in the study area.
5. To examine the impact of changes in price of chillies on its area,
production and productivity.
6. To study the constraints existing in the marketing of Dry chillies.
Hypothesis
The research study has set forth the following hypothesis
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1. There is a positive growth and high variability in area, production and
productivity of chilli in Karnataka.
2. Financial constraints and inadequate storage capacity compel the
agriculturist to sell their produce immediately after the harvest at an
unremunerative price.
3. The price changes of chilli crops have positive impact on its area,
productions and productivity.
4. Small size of output compels the growing farmer‟s local sales of chillies.
5. Production and marketing costs of chillies are rising faster than the market
price of chillies.
Limitations of the study
The study has been conducted with some limitations. Limitations are
restrictive conditions under which the research study is conducted. It is essential
for the researcher to reduce the study to workable size and set boundaries by
limiting its scope.
Following are the limitations of the study
1. Constraints on time and resources of the researcher forced select limited area
for the study. Hence, results are largely applicable to those areas where
similar conditions prevail.
2. The interview method of data collection requires the respondants to recall
from their memories about cultural operations. Hence, the findings may be
subject to memory lapses of respondants.
3. The average price realized during the study period was calculated and used
in converting production figures from quantities to value terms, although the
prices realized differ from farmer to farmer.
4. The sample of respondent chilli growing farmers is limited only to 200 in the
10 villages of two province of Navalgund taluk.
Scope of the Study
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The major areas of the present research study relate to the production and
market dimensions of the cash crops in general and chilli in particular in the
study area. The production dimensions include the analysis of the variations in
the production area, volume of production and productivity of the crop. The
study has also provided a comprehensive analysis of the cost structure of the
produce and the cost components and their relative significance. The analysis of
the production dimensions also relate to the technological level used by the
cultivators in the production of oil seeds.
The research study involves a systematic analysis of the marketing
dimensions of the cash crops produce in general and marketing of chilli in
particular in the areas covered by the study. The analysis relates to various
marketing processes involved viz., assembling storing, grading, packing,
transport, market information, the marketing costs and finance, channels of
distribution, pricing etc. The other areas covered under the marketing
dimensions relate to the role of market intermediaries and the APMC etc.
The analysis of the production and marketing dimensions has naturally
revealed some of the major problem areas of the cash crops industry in general
and chilli in particular.
Need For the Study and Statement of the Problem
The cash crops industry in general and chilli in particular have faced with
many problems and challenges. The inadequacy of cropped area, low
productivity lack of adequate supply of quality seeds absence of integrated
nutrient supply management, inefficient crop management practices, absence of
suitable soil and moisture conservation etc are the major problems in the area of
production management.
The problem areas of marketing of cash crops and chilli relate to absence
of scientific assembling and storage, lack of adequate transport and grading
facilities insufficient market information. The role of market intermediaries and
24
the APMC have been found unsatisfactory. High marketing costs and
inadequate finance resulting in distress sales in the village local sales at low
prices are the other set of marketing problems of chilli farmers and sellers.
In view of the above areas of production and marketing inadequacies the
cash crops in general and chillies in perticular in the study area the researcher
felt that, there is need for the study of the production and marketing of cash
crops in general and chilli in particular in the study area which is a major
producer of cash crops in this part of Karnataka. Hence the present study is
selected as stated below:
25
“MARKETING OF CHILLY IN NAVALGUND TALUKA IN THE
STATE OF KARNATAKA”
Methodology:
Choice of the Area
The study covers the TEN villages in two provinces of ANNIGERI and
MORAB in Navalgund Taluk. These areas have dry climate and have vast
stretch of black and red soil suitable for growing Cash Crops like groundnut,
cotton and chilli. These cash crops are grown extensively in these areas Hence,
the Taluka is selected for the research studies.
Choice of Respondent Farmers
A total number of 200 respondent farmers growing the chilli have been
chosen for an intensive study of the marketing of cash crops with special
reference to chilli. Province wise the study covers 100 farmers in each Province
for personal interview for obtaining the data. The 200 farmers includes 120
large farmers and 80 small farmers to give proper representation to the two
groups of farmers in each Province. The actual selection of the farmers and their
location is done on a random sampling basis by taking into account the area
under cash crops in general and groundnut, cotton and chilli in particular.
Type of Data Collection
The study is based on both primary and secondary data. Primary data is
collected from the 200 respondent farmers growing cash crops in the 10 villages
of the Provinces of the taluka. The data is collected as per structured
questionnaire on production and market aspects.
The secondary data is collected from the published sources from
government and other relevant institutions such as APMCs. Dept.of Agriculture,
Dept of Statistics etc.
26
Method of Data Collection
The primary data has been collected through personal interviews as per
the pretested and structured questionnaire administered to the 200 farmers. The
questionnaire for the farmer- respondents consisted of two sections- the first
relating to questions on different aspects of production of cash crops,
investment, employment and income of the farmers. The second part related to
various aspects of marketing of cash crops and chilli viz., assembling, grading,
packing, storage, transport, warehousing, insurance, market information,
channels of distribution, pricing, marketing costs and finance marketing
problems etc.
Another questionnaire was administered to the market intermediaries like
wholesale merchants, commission agents who operate in the APMC area and
provide their services to the farmers selected intermediaries were interviewed as
per the questionnaire prepared in advance.
Information was also sought and collected from the officials of the
APMC in each province regarding the marketing services provided to cash
crops farmers who sold their chilli through the APMC.
Discussions were held by the researcher with the APMC officials, bank
officials and officials of Agricultural Marketing of the State government about
the production and marketing of cash crops in general and chilli in particular.
Period of Data Collection
The data collection was for a period of 7 years from 2003 –2004 to 2009-
2010 for purpose of analysis and interpretation. The five year period was
considered adequate to study the trends of production, price and other related
aspects of chilli production and marketing in the study area.
Data Analysis and Interpretation
27
The data collected from the primary and secondary sources are presented
in suitably planned statistical tables. The data is interpreted through statistical
tools by using simple techniques like percentages ratios and averages.
Appropriate conclusions and inferences are derived from the statistical tables
thus prepared from the data collected.
ORGANISATION OF THE STUDY:
The research study is presented in the following six chapters.
Chapter I: Introduction and Research Study:
The first chapter is devoted to a detailed narration of the research design.
The chapter provides an introduction to the problem of chilli production and
marketing highlighting the issues and problems involved therein. The other
aspects include the clarification of the objectives, the assumed hypotheses and
limitations of the study, the need for the research and a detailed presentation of
the methodology of data collection. The chapter also contains a comprehensive
review of the existing literature related to the topic of research.
Chapter II: Growth of Chillies – Global, National and Regional
Perspective:
The second chapter provides economic dimensions of chillies with a
global, national and regional perspective. The discussion is supported with
appropriate statistical information using time series data on area, production and
yield per acre of dry chilli. The presentation provides a good backdrop for the
analysis in the study area.
Chapter III: Profile of the Chilly Growing Farmers Covered by the Study:
The third chapter consists of profiles of the selected farmers engaged in
the production and marketing of chilli in the study area. The chapter also
provides the profiles of market intermediaries and the APMCs in the areas
covered by the study.
Chapter IV: Production Dimension of Chillies in Navalgund Taluk.
The fourth chapter is devoted for an indepth analysis of the production
28
dimensions of chilli of the selected farmers for the study. The study is backed
up with statistical support obtained through well structured questionnaire
administered to the respondent farmers in the ten villages in two provinces of
Annigeri and Morab in Navalgund Taluk.
Chapter V: Marketing Dimensions of Chillies in Navalgund Taluk.
The fifth chapter provides the findings related to the marketing
dimensions of the chilli farmers covered by the study. The data collected from
the respondent farmers has resulted in some significant findings. Hence the
chapter happens to be one of the core chapters in dissertation.
Chapter VI: Summary of Findings, Conclusions and Suggestions.
The sixth and the last chapter provide a summary of findings, conclusions
and suggestions.
Review of Literature:
A review of related literature has been made here to gain a proper
perception and clarity about the status of production and marketing of oil seeds
in general and production and market of groundnut in particular in the historical
and contemporary context. The review of research studies in the related field
has been useful in understanding appropriate tools and techniques that can be
used in the analysis appreciating the various evidences generated and policy
prescriptions suggested there in. Such a review of literature would provide a
basis for either for conforming the earlier results or for contradicting them and
there by suggesting the points for further improvments. The review literature is
presented as under:
DRY CHILLIES:
Studies on Marketing of Chillies are limited in Number. They related to
various aspects of Chillies like cost of Cultivation, output, Return, Manpower,
Price Structure, and Cost of Marketing etc. Research Papers, Reference books,
dissertations Published and Unpublished Doctorate Theses Constitute the main
Literature available on the Subject. An attempt is made to present a brief
29
Review of some of those writings.
K. Raji Reddy1
K. Raji Reddy has made a Study of marketing of chillies with Special
Reference to Guntur, Warangal and Ananthpur district in Andhra Pradesh. In
this published Doctorate Research Study, Raji Reddy has made on In-depth
Analysis of Cultivation, Practices of Chillies, Assembling and Distribution,
Grading, Storage, Packing and Transportation Price structure and Role of
Regulated Markets in Marketing of Chillies. The Study covers a period of Ten
years from 1975 to 1985. Based on a Sample Survey of Farmers and Merchants,
the Study Provides an insight into the marketing Problem confronting this
important primary product which has good Potential for Domestic and Export
sales. The Researcher has analysed all the aspects of the marketing mix
pertaining to marketing of Red chillies. The findings have a Practical Value and
go a long way in improving the marketing prospects of this important spice in
the country‟s Economy. This study has bearing on the analytical Approach in
this Research work.
K.A. Yeledhalli2
K.A. Yeledhalli has made a Study of Production and Marketing of Dry
Chillies in Dharwad District. He has made an Elaborate analysis of Cropping
Pattern, growth Rates, Costs, Return and Profits. His analysis of Relationship
between market Trends and Prices of chillies is Very relevant. Equally
analytical is Comprehensive backed by Empirical evidences in the leading
chillies Markets in Dharwad District. The Author has made use of Advanced
Statistical techniques to derive precise inferences. The Author‟s attempt in
providing a Comprehensive picture of issues of Marketing of Dry chillies is
quite useful for the future Researcher‟s. However, his reflections on the Role of
intermediaries in the Marketing of Dry chillies seem inadequate. The Present
Study has tried to overcome this deficiency.
30
P.G. Patre3
P.G. Patre‟s Study on Marketing of chillies in Byadgi is a Very
Productive effort in presenting different dimensions of Marketing of Chillies in
the leading Marketing Centere of Byadgi for chillies in Karnataka. The
Researcher has made a detailed Study of the Origins of the Arrivals of the Dry
Chillies to the Main Market at Byadgi, The important facilities and Problems
the Channels of Sales in the Market and their efficiency in terms of Marketing
Casts, and Margins etc. His analysis also covers the Role of Co-operative
institutions in the Marketing of Chillies in the area. His analysis of Price trends
in the market is also Very useful. His analysis of the Price Spread and the Share
of Producers in the Consumer‟s Rupee in the Sample Market is quite revealing.
The Study is limited to only one Market for chillies at Byadgi. Comprehensive
Picture cannot emerge from his Study. Since he
has not made simultaneous study of another market the Present Researcher has
tried to overcome this deficiency as well.
M.M. Hosamani4
M.M. Hosamani of the University of Agriculture Science Dharwad has
brought out a good Publication on “Chilli Crop”. The Author has provided a
good analysis of the Horticulture and Marketing aspect of Chilli Crop. A
Special discussion of grading, Marketing and export aspect have Special
relevance for the Present Study. He has discussed the grading aspects with
reference to both domestic and Export Markets in the light of the Stipulations of
“Agmark”. He has analysed the Volume of Trade and Price Structure over a
Period of 2 decades from 1970-71 to 1991-92 and has covered National and
State level Dimensions. His discussion on Export aspects of Chillies is quite
comprehensive Price Trend analysis has also been done with reference to the
factors influencing the Price of the Chillies during different seasons. He has also
31
made a brief reference to Marketing Methods, Drying and Cost Cultivation etc.
M.H. Beturmath5
M.H. Beturmaths Study on Marketing and Management of Red Chillies
in Dharwad District is another useful Research work based on a Survey of
marketing Centres of Red Chillies in this District which is one of leading district
in the Production of Red Chillies in India.
His discussion is devoted to the detailed analysis of Marketing System of
Red Chillies in Dharwad District. Similarly the Study is devoted to an intensive
analysis of the Marketing of Red Chillies in Byadgi Taluk of the District. Here
the analysis is highly informative and has empirical Volume too. Again the
Study is devoted to an analysis of the Problems of Farmers and Marketing
functionaries. The whole exercise is focused on the different aspects of
marketing areas related to the Marketing of Red Chillies. Here, too the
Comprehensive Picture of Marketing Practices in different areas of the district
has not emerged. The Deficiency too is over come in the Present Study.
Usha K. Nagabhushanam and Krishnia6
The Study on “Operational Efficiency” of Two Regulated markets for
Chillies in “Andhra Pradesh” by - “Usha K. Nagabhushanam and Krishnia” has
been done to asses the operational efficiency of marketing of Dry Chillies in
Medak district of Andhra Pradesh. The Author has made a Comprehensive
Study of Operational Efficiency of marketing by selecting two important sub-
markets of Sadasivpet and Jogipet. The Authors have assessed the operational
efficiency of these two markets on the basis of the Major functions of the
Regulated Markets with reference to the Andhra Pradesh, Agricultural Produce
and livestock market act 1966 by constructing the overall index of operational
efficiency by giving weightage to identitied functions according to their
Relative importance. The Study has concluded that the overall operational
efficiency of the markets was 58% and 46.5% for Sadasivpet and Jogipet
32
respectively.
Hence they have concluded that there is need for Streamling the markets
total operational efficiency. This is a good study and useful for Researchers to
do Similar Studies in other area‟s.
Kamat G.S. and Purashottam P7
Kamat G.S. and Purashottam P Made a Study of economies of Storage in
Marketing of chillies in the Andhra Pradesh. The Study revealed that the
temporal Price fluctuations exceeded the reasonable Costs of Storage. The
Authors reported that during the 11 out of 16 years covered by the study, the
Storage operations were Profitable. They further concluded that through the
farmers are aware of the gains from Storage operations; their Poor Holding
Power compelled them to sell at the harvest Time. The Authors have suggested
linking Credit with Marketing to enable farmers to avail of the benefits accruing
with Storage Operations.
Mishra, Vishwakarma and Rawat8
Mishra, Vishwakarma and Rawat have made a Study of Production and
Marketing of Chillies in Azamargh District of Uttar Pradesh. The Author has
made the study with two Main Objectives.
1. To work out the Cost of Cultivation and cost of Production of Chillies and
2. To Study the Price Spread in the Marketing of Chillies. The findings of the
Study are quite revealing. The Average Cost of inputs for marginal farm was
Rs. 22, 782.67 per hectare. While the Average Cost of input for a Small and
Medium and other farms were Rs. 22,498.79 and Rs. 21,528.87 per hectare
respectively. The over all average cost of farm inputs was Rs. 22,493.02 per
hectare. The Return from the Production of Chillies was 62.91 quintals for
marginal farms 61.87 Qtls for small farms and 60.44 quintals for medium / other
farms. The Average yield was 62.17 quintals.
The Gross income from Marginal Small and Medium / other was Rs.
51,785.00 Rs. 50,928.91 and Rs. 49,751.79 respectively. The Average Gross
33
income was Rs. 50,957.45 per hectare. The Net income from the respective size
of Farms was Rs. 29.002.33, Rs. 28,430.12 and Rs. 27,902, 92. The average net
income was Rs. 28,518.45 per hectare.
The Price-Spread for the sale of Chillies studied by the authors, reveals
that the Producer, received 98.82% of the Consumer Price when the Producer
sells to Consumer. The Price received by the Producer is 90.85% of consumer
Price when Producer sells to the Retailer and then to consumer. While the Price
received by the Producer is 74.17 % when the chillies are sold to a consumer
through Producer -> Wholesaler -> Retailer -> consumer channel
The Study is a Sample Survey in a chillies Market in A.P. Such studies
have a good bearing upon Similar Studies like the present one are useful to
future researchers.
N.S.R. Murthy9
N.S.R. Murthy has made a study on “Chillies Quality improvement at
Form Level”. He has pleaded for Quality improvement at Farm Level, Keeping
in View of the quality conscious consumers in the Sophisticated Markets of
Europe and U.S.A. He has suggested adopting mechanical drying, as it would
reduce the drying period and would help for Retaining the Colour of Red-
Chillies. He has proposed for Scientific grading and Packing of chillies
Particularly for Export Market.
M.N. Ramachandran10
M.N. Ramachandran has emphasised the grading quality assessment of
chillies. In his paper on “Grading and quality assessment of Agricultural
Commodities under Agmark and Agmark Grade Specification for chillies has
laid Particular emphasis on the following two Aspects.
i) Improve Practices to minimise losses and quality deterioration of the Product.
ii) Strengthen the marketing infrastructure which can deliver a fair and
Remunerative Price to growers.
34
He has highlighted role of Directorate of Marketing and Inspection in
implementing the grading Provisions under the Agmark Standards and quality
assessment scheme of Directorate. The Author has provided details of grading
Procedure for both internal & Export markets.
M.P. Suresh11
M.P. Suresh Study on “Chillies International Markets and Indian
Exports” is quite revealing and has Practical Significance to exporters of dry
chillies from India. He has highlighted the Competition from China to Indian
export of chillies and Pleaded for the necessary improvement in the Marketing
efficiency of Indian Exporters. Suresh has pleaded for diversifying exports of
different Varieties and makes of Red Chillies and has emphasized the
importance of exporting oleoresin to western Markets, where there is good
demand for the same.
Brahmaiah P12
Brahmaiah P have identified in their study that majority of Farmers have
adopted channel -III 76.67% (Selling at Regulated Markets) for selling their
chillies where as channel-I and Channel-II (Farmers Selling to Village Trader
and Farmers Selling to processor respectively) were chosen by meagre 16.66%
and 6.67% of Farmers.
Further the Authors Maintained that a higher Percentage of large farmers
have adopted channel-III over small and medium farmers. The Authors asserted
that regulated markets have not attained all categorize of Farmers in the Same
Manner. This Study has helped in a better approach of the field Study of the
Present Research work.
All India Spices Board and A.P. Agricultural University13
National Seminar on Chillies, Ginger and Turmeric Jointly organised by
All India Spices Board and A.P. Agricultural University in 1998 has made some
35
important Suggestions on Production and Marketing of Chillies.
1. The marketing Research should be strengthened to develop and popularize
the marketing of chillies.
2. Possibilities of Mechanical drying should be studied.
3. Inter Cropping should be Advocated and Studies Should be undertaken
regarding inter Cropping Practices.
4. Cost-benefit Ratio‟s should be worked out for chillies in various regions
under different pattern of cultivation.
5. Quality studies in response to the use of Fertilisers and Plant Protection
Chemicals should be taken up.
6. Post-harvesting techniques should be developed to Prepare chillies according
to the requirements of Export Market.
7. Developmental activities should be taken up through field demonstrations
regarding Package, Practices, Post-harvest, techniques, Preservations of seed
materials etc.
8. New International market should be explored for chillies export.
9. Spice Board should undertake market Research of the International /
domestic Markets for chillies.
10. Modalities for determining the Remunerative Prices to protect the farmers
from Price fluctuations should be worked out. The above views expressed at
the Seminar have a good bearing on the Present Study in the analysis of
different aspects of marketing of Chillies.
Sharma4
Sharma (1977) studied the effect of Area, Yield and Price on increase
of value of crop output in India for the Period 1960-61 to 1970-71. The author
used his own decomposition scheme in measuring the effects of Productivity,
area, and Prices and their interactions in the increase of value of Production of
wheat, rice, Pulses food grains, oil seeds, sugarcane, Jute, tobacco, cotton, tea
36
and Chillies.
In case of cash crops like Sugarcane, Jute, Tobacco, and Chillies, area
effect was higher than yield effect by 0.74%, 40.09%, 10.08% and 3.72%
respectively. The Price effect was in the Range of 49.22% to 74.37% in respect
of these crops. The Price effect in case of Cotton was found to be 142.95%
which offset the negative effect of yield, area and interaction and thus resulted
in a net increase in income by Rs. 1,538 million.
Agriculture associated technology5
Instability in Agriculture associated with new technology‟s was studied
(Jha, 1994) and the Results revealed that instability in gross return of Crops was
highest in Rabi Oilseeds (153%) followed by gram, course cereals, cotton wheat
and paddy in the first Period (1972-73 to 1980-81). Instability in Gross return
of Paddy was however, small in Period-II (1981-82 to 1990-91) may be because
of fluctuation in Area under basmati paddy during 1980 s. Maize and Cotton
showed decline in Instability of Gross Return in Period-II while instability in
yield increased thereby emphasizing the Role of Price Instability in explaining
the Instability in Gross Return.
References
1. K. Raji Reddy Marketing of chillies. Printed well Jaipur. PP-21 to 35.
2. K.A. Yeledhalli Production & Marketing of Dry Chillies in Dharwad
District An Economic analysis, Dissertation, Submitted to UAS DWD
1980. PP - 28 to 35.
3. P.G. Patre Marketing of Chillies in Byadgi, A Dissertation Submitted to
K.U.D. 1989. PP - 18 to 26.
4. M.M. Hosamani Chilli Crop UAS, DWD 1993.
5. M.H. Bethurmath, Marketing and Management of Red Chillies in DWD
district Acommodity Approach, Dissertation Submitted to Shivaj
37
University Kolhapur 1990.
6. Usha K. Nagabhushanam and J. Krishna operational efficiency of two
regulated Markets of Chillies in A.P. Agricultural Marketing 1989, Vol 32.
PP - 16 to 19.
7. G.S. Kamat and P. Purushottam. Economics of Storage in Marketing of
Chillies in A.P. Agricultural Marketing Jully - 1978. P - 17.
8. J.P. Mishra etal. Production and Marketing of Chillies. The Bhihar Journal
of Agricultural Marketing March 1999.
9. N.S. Murthy, Chillies, “quality improvement at farm level in quality
Improvement of chillies”. Spice Board 1998. PP - 1-10
10. M.N. Ramachandran, Grading and quality Assessment of Agricultural
Commodities under Agmark and Agmark Grade Specification of chillies. I
bid PP 18-29.
11. M.P. Suresh Chillies International Markets and Indian Exports. I bid PP
38-44.
12. Brahmaiah P. etal. Impact of market Regulations on Farmers Economic
Development A case Study paper presented at seminar on Agricultural
marketing and Economic Development, Institute of Development Studies
University of Mysore Oct - 12-14-1998.
13. Reproduced from K. Raji Reddy book - marketing of chillies.
14. Reproduced from K. Raji Reddy book - marketing of chillies.
***********
38
CHAPTER – II
ECONOMIC DIMENSIONS OF CASH CROPS – GLOBAL,
NATIONAL AND REGIONAL PERSPECTIVES
Agricultural marketing is now being considered as an integral part of
production process itself. The development of the country is closely linked with
the development of agriculture. The development of agriculture is dependent
upon the facilities available for marketing of goods supplied by agriculture. 'The
marketing of agricultural products is a matter of great interest to the farmer, the
consumer and the middleman. To the farmer, it provides the channel of
communication between him and the society and gives him continuous
information about demand for his products. The consumer views it as a means
of supplying his need since marketing helps in raising the standard of living of
the people by satisfying the multitude' of needs and desires of consumers. The
middleman depends upon it for his livelihood.
In a developing country like India, marketing of agricultural goods is also
responsible for the well-being of the farmers' class. The better the facilities and
opportunities for farmers to undertake marketing of their produce, the greater
the interest for them to increase the production. Thus, switching over to
commercial farming from subsistence farming is possible.
Agricultural marketing is expected to promote the welfare of the farmers'
class in particular, and that of the consumers in general. However, over the
period, Indian agricultural marketing is criticized for its operational and pricing
inefficiencies. The present study is a modest attempt in understanding the
glaring and latent operational problems in the functioning of a regional
regulated market at Navalgund taluk. The main cash crop Chilli which is
undertaken for the present study are analyzed respectively with the Global,
National and Regional Perspectives here under:
39
DRY CHILLI: The major cash crop undertaken for the present study stands for Chilli.
Chilli (Capsicum annuum L.; Capsicum frutescene L.), also called red pepper‟,
is an important cash crop in India and is grown for its pungent fruits, which are
used both green and ripe (the latter in the dried form) to impart pungency to the
food. As a condiment, it has become indispensable in every Indian home. It is
also used medicinally, and in chutnies and pickles. The pungency is due to the
active principle `capsicin‟ contained in the skin and the septa of the fruit. The
world consumption of chillies and paprika is going up due to the increasing
popularity of ethnic foods. The increased availability of oleoresins and spice
oils of chilli has also enhanced its consumption in various food preparations.
India is the largest producer of chillies in the world but its production pattern is
highly erratic.
Area of Cultivation
The chilli crop is grown from almost the sea-level up to an altitude of
1,500 metres in tropical and subtropical regions, with an annual rainfall of 60-
150 cm. In India, chillies are now grown in almost all parts. At present, Andhra
Pradesh, Karnataka, Maharashtra, Orissa, Rajasthan, Tamil Nadu and West
Bengal account for 85.8 per cent of the total area and 89.3 per cent of the total
output of chillies in the country. Chilli is cultivated in Guntur, Warangal,
Khammam, Krishna, Hyderabad, Pundur, Nizamabad, Cuddapah, Rajahmundry
and Nellore districts in Andhra Pradesh; Hubli, Gadag and Byadgi in Karnataka;
and Nashik, Ahmednagar, Sholapur, Aurangabed, Nanded, Amravati and
Lasalgaon in Maharashtra. In Punjan and Haryana, chilli is cultivated in
Amritsar, Nabha, Patiala, Sunam and Samna; in Uttar Pradesh in Bareily and
Khurja; and in Tamil Nadu in Tuticorin and Salem. In India, chilli is being
cultivated mostly as a rain-fed crop therefore its yield fluctuates from year to
year and is generally poor. Recently, its production has been taken up in
irrigated areas in non-traditional states like Punjab and Uttar Pradesh also where
the yield has been better which is likely to boost its output in the coming years.
40
Season
The chill crop does well in the tropical and the sub tropical regions with
annual rainfall of 60-150 cms. Very high rainfall during its growth is harmful.
When grown in the hot weather or in lower-rainfall tracts, it is cultivated as an
irrigated crop. Normally the sowing is done in June-July and plucking in
January. The chilly plant lasts for one season only. It is plucked 3 to 4 times in
the season.
Soil
The rain-fed crop does well on deep, fertile, well-drained black cotton
soils. In ill-drained soils, the plants shed their leaves and turn sickly even with
temporary water-logging. Under irrigation and good manuring, excellent crops
can be raised in sandy and light alluvial loams as well as in red loamy soils.
Harvesting
The crop becomes ready for harvesting in about 3/1/2 months after
planting. The picking of ripe fruits continues for about 2 months and about 6-10
pickings are taken. If there is a demand for green chillies, the first one or two
pickings are taken for this purpose. The summer crop is wholly disposed of as
green chillies. Ripe fruits are picked along with stalks and are heaped indoors
for 3 or 4 days for the partially ripe fruit to develop the proper red colour. They
are then dried in the sun for 4 to 5 days, depending upon weather conditions and
are graded for size and colour before marketing. Unripe chillies are sometimes
boiled and dried for domestic consumption. Commercially, there are various
grades, such as the first sort, the second sort, mixture, etc. Grades, such as
special, medium and fair are also adopted. Good fruit length, shining red colour,
high pungency and strong attachment of the calyx are the important factors,
which the merchants consider for fetching a high price. In the USA and other
countries, there is a liking for stalkless chilli pods of deep red and glossy
41
pericarp. Artificial drying favours the retention of the deep and red colour and
smooth and glossy pericarp, as the produce is dehydrated within a short period
of 18 hours. Pods of `G-3‟, which have a cup-shaped calyx and compressed base
are reported retained intact since the thalamus portion, which is compressed,
prevents shedding.
World Scenario of Dry Chilli
Chilli powder is a world renowed spice that is used in many cuisines and
recipes of various cultures to add a tingy taste to them. It is often reffered to as a
type of pepper due to its matching taste but interestingly it is not even close to
the family of piper nigrum rather it belongs to the family of capsicum. Chillies
come in different colors, varieties, fragnances, sizes etc but are similar in
structure i.e a hollow, seed containing, and tube like structure. A substance
known by the name of Capsaicin results in the pungent flavor of the fruit.
Both green and dry chillies are produced world over from the chilli crop.
The world production of chilli crop sums up to around 7million tons that is
cultivated on approximately 1.5 million hectares of land. India is the world
leader in context of chilli production followed by China and Pakistan. This
shows that the bulk share of chilli production is held by the Asian countries
though it is produced throughout the world. The large demand of chilli is made
by several chilli consuming countries as it forms part of cuisines of various
cultures and is also used as a coloring agent. Most of its demand is generated in
the food processing sector. The following countries are the major consumers of
the world with India again leading the list India China Mexico Thailand United
States of America United Kingdom Germany Sweden.
As the leading producer of chilli crop in the world, India is also the
largest exporter of chilli in the world. It contribues to ¼th share in the total
42
quantity of chilli exported in the world. But China isnt far behind from India
and it has been providing a severe competition to the Indian dominance due to
India‟s variable supply and high domestic consumption.The major chilli
exporting players along with their percentage share in the world total exports
are India (25%) China (24%) Spain (17%) Mexico (8%) Pakistan (7.2%)
Morocco (7%) Turkey (4.5%). World trade in chillies account to an
approximate of 16% in the total spice trade in the world. This share places chilli
on the second position after black pepper in the world trade. The following is
the list of the leading chilli importing countries in the world United Arab
Emirates European Union Sri Lanka Malaysia Japan Korea.
Chillies originated in the Latin American regions of New Mexico and
Guatemala as a wild crop in around 7500BC. The people native to these places
domesticated this crop in 5000BC as per the remains of the pre historic Peru.
This crop is said to be the first ever domesticated crop in America. In that time,
chillies were cultivated by the farmers with a primary crop to protect the
primary crop from any damage that the birds could do. It gained popularity in
the American continent as a flavoring and was being largely cultivated since
then.
When America was discovered, and the Spaniards and Portuguese
explored the South American continent, this pungent flavored fruit gained the
much more deserved recognition. Christopher Columbus, the founder of
America, was one of the first Europeans who encountered and consumed chilli,
and called it peppers due to the similarity in taste. It was found that crushing the
dried pods give chilli powder, which later was identified as a substitute of
„peppercorn‟. In some time, chilli earned more recognition as compared to the
peppercorns being simpler to produce and a lot too hot from the other spice.
This crop came into the Asian continent in as late as the 16th century with
the identification of new sea routes by Portuguese and Spanish explorers. It
43
became popular in the whole of Asia rapidly and native Asians started
cultivating this crop here as well. The south Asian climate suited this vegetable
crop, and since then the concentration of production of chillies shifted to Asia.
In today‟s scenario, the most sharp and valued varieties of chilli are grown and
present in Asia only.
Chilli producing countries
As chilli is a simpler crop to cultivate, it is produced all over the world.
The world production level has been on an increasing trend and there has been a
significant rise in the production level since the late 1990s. It has reached
around 7 million tons now from the figure of 2.5 million tons in the last decade.
The major chilli producing nations are
India (Asia) China (Asia) Indonesia (Asia) Korea (Asia) Pakistan (Asia) Turkey
(Asia) Sri Lanka (Asia) Nigeria (Africa) Ghana (Africa) Tunisia (Africa) Egypt
(Africa) Mexico (North America) United States of America (North America)
Yugoslavia (Europe) Spain (Europe) Romania (Europe) Bulgaria (Europe) Italy
(Europe) Hungary (Europe) Argentina (South America)Peru (South America)
Brazil (South America)
The largest producer of chillies in the world is India accounting for 11
lakh tons of production annually followed by China with a production of around
4 lakh tons, Mexico with the production of around 3 lakh tons and Pakistan also
producing 3 lakh tons of chilli every year. India also leads in the context of
maximum area covered in the cultivation of chillies.
Production of chilli in India
As already mentioned, India is the largest producer of chillies in the
world. Its production level hovers around 1.1 million tons annually. India also
has the maximum area dedicated to the production of this crop. The major
regions where chilli is cultivated in India are
Guntur (Andhra Pradesh) Warangal (Andhra Pradesh) Khammam (Andhra
44
Pradesh) Krishna (Andhra Pradesh) Prakasham (Andhra Pradesh) Hyderabad
(Andhra Pradesh) Pundur (Andhra Pradesh) Nizamabad (Andhra Pradesh)
Cuddpah (Andhra Pradesh) Rajamundry (Andhra Pradesh) Nellore (Andhra
Pradesh) Dharwad (Karnataka) Mysore (Karnataka) Hasan (Karnataka)
Bangalore (Karnataka) Bellary (Karnataka) Ranibennur (Karnataka) Hubli
(Karnataka) Gadag (Karnataka) Byadgi (Karnataka) Nasik (Maharashtra)
Ahmednagar (Maharashtra) Sholapur (Maharashtra) Aurangabad (Maharashtra)
Nanded (Maharashtra) Amravati (Maharashtra) Lasalgaon (Maharashtra)
Bareily (Uttar Pradesh) Khurja (Uttar Pradesh) Amristar (Punjab) Nabha
(Punjab) Patiala (Punjab) Sunam (Punjab) Coimbatore (Tamil Nadu)
Ramanathapuram (Tamil Nadu) Tuticorin (Tamil Nadu) Tirunelveli (Tamil
Nadu) Virudunagar (Tamil Nadu) Kanayakumari (Tamil Nadu) Madurai (Tamil
Nadu) Salem (Tamil Nadu) Tiruchi (Tamil Nadu) Villupuram (Tamil Nadu)
Cuddalore (Tamil Nadu) Jodhpur (Rajasthan) Ajmer (Rajasthan) Bhilwara
(Rajasthan) Pali (Rajasthan) Sikar (Rajasthan) Bharatpur (Rajasthan)
Swaimadhopur (Rajasthan) Orissa West Bengal Madhya Pradesh
Andhra Pradesh stands first in the list of leading chilli-producing states in
India and also constitutes the maximum acreage for chilli cultivation in the
country. It occupies 49% share in the Indian total production and produces
around 2.7 lakh tons of chillies. Karnataka follows Andhra Pradesh, which share
14% of the production in the country. The major chilli producing states in India
namely Andhra Pradesh, Karnataka, Maharashtra, Orissa, Rajasthan and Tamil
Nadu contribute to around 86% of total area for the chilli crop cultivation in the
country and 90% of the total Indian produce.
Indian chilli market
Though chillies were introduced to India very late after they were
discovered, the delay couldn‟t lessen this country‟s love for this so popular
flavoring agent. Indians adopted chillies ever since it was brought into the
country and it became an integral part of the Indian culture. Till today many
45
superstitions are related with chillies and it is hanged up at the door with a few
lemons as it is considered that this act will guard the house from the evil.
Currently, chillies are produced through the length and breadth of the
country making the most dominating player in the world market. India produces
the maximum amount of chillies in the world figuring up to around 11 lakh tons
and is also the leading country in context of area covered in chilli production.
This crop is cultivated in almost all the states of the country, Andhra Pradesh
being the leader of all. It contributes to approximately 25% of the total
production. The varieties of chilli produced by India are Sannam, LC 334,
Byadgi, Wonder Hot, Jwala etc.
India is also the largest consumer and exporter of this crop. It consumes
around 6.2 million tons of chillies i.e. about 90% of the total produce of the
country. The demand from the chilli powder-producing sector constitutes to
30% of the total production in the country. Exports of chillies sum up to around
100000 tons, which makes 33% of the total spices exported from the country.
The Indian exports in 2003-04 were valued at 366.80 crores. Chilli powder,
dried chillies, pickled chillies and chilli oleoresins are some of the forms in
which this crop is exported. The major importers of chillies from India are
United States of America, Sri Lanka, Bangladesh, Nepal, Mexico, Canada,
United Kingdom, Saudi Arabia, Singapore, Malaysia, and Germany
Though Indian exports are showing satisfactory trends, nowadays India is
facing a very tough competition in the international export market as price of
the Indian chilli powder is considered too high for the market and other
competitive countries are providing chilli at very competitive rates to the major
importing countries. If the country is able to meet the strict quality demands of
the international market, the exports can be further improved. Steps have to be
taken by the government encouraging the exporters to maintain the Indian
dominance in the world market.
46
Market Influencing Factors Seasonal price fluctuations overall production in the country world
demand, Stock available in cold storages hedging among the various varieties of
chilli and major trading centers of chilli.
The major trading centers of chilli and chilli powder in India are Guntur –
largest chilli market in the world (Andhra Pradesh) Warangal (Andhra Pradesh)
Khammam (Andhra Pradesh) Hindpur (Andhra Pradesh) Raichur (Karnataka)
Bellary (Karnataka) Unjha (Gujarat) Chennai Kolkata Mumbai Delhi
Ahmedabad Nagpur
Chilli is also traded in the Indian commodity exchanges namely National
Commodity and Derivatives Exchange of India ltd and Multi Commodity
Exchange of India ltd.
Dry Chillies Production – The Trends in India India has been a major producer of Dry Chilli in the world. The trends in
area under dry chilli crop production and yield per hectare during the period
from 2000-01 to 2009-10 are provided in the following table.
Table No. 2.1
Area, Production and Yield Per Hectare of Chillies in India.
Year Area [in lakh hecters]
Production [in lakh tonnes]
Yield per hecters/kg
2000-2001 8.36 09.84 1176
2001-2002 8.80 10.69 1215
2002-2003 8.29 8.67 1082
2003-2004 7.74 12.36 1596
2004-2005 7.37 11.85 1607
2005-2006 6.54 10.15 1551
2007-2008 8.02 13.82 1723
2008-2009 8.09 14.70 1817
2009-2010 7.16 12.99 1814
2010-2011 8.41 14.26 1695
Source:DES Ministry of Agriculture, Govt of India and Agriculture Statistics at
47
glance 2012 and State Agri/Hort. Departments Cardamom: Estimate by Spices
board 2010-11: DASD, Calicut.
It is clear from the above table that there is fluctuating trends of area for
dry chilli. It is varied from 8.36 lakh hectare in 2000-2001 to 8.41 lakh hectare
in 2010-11. It is observed that the minimum dry chilli area is 6.54 lakh hectares
in 2005-06 and maximum area is 8.80 lakh hectares in 2001-2002.
It is clear from the above table that there is fluctuating trends of
production for dry chilli too. It is varied from 9.84 lakh tonnes in 2000-01 to
14.26 lakh hectare in 2010-11. The production of dry chilli registered a
minimum of 8.67 lakh tonnes in 2002-03 and a maximum of 14.70 lakh tones in
2008-09.
Fluctuating trends can also be seen in yield per hectare per kg of dry
chillies. It is varied from 1176 kgs in 2000-01 to 1695 kgs in 2010-11. The yield
per hectare per kg of chilli registered a minimum of 1215 kgs in 2001-02 and a
maximum of 1817 kgs in 2008-09.
Karnataka Scenario
Area, Production and Yield Per Hectare of Dry Chillies in
Karnataka Karnataka is one of the major dry chillies producing states in the country.
The details of the area, production and yield under the dry chilli crop, are
provided in the following table.
48
Table No. 2.2
Area, Production andYield Per Hecter of Chilli in karnataka
Year Area [in lakh hecters]
Production [in lakh tonnes]
Yield per hecters/kg
2001-2002 1.93 1.26 655
2002-2003 1.55 1.53 987
2003-2004 0.70 0.95 1352
2004-2005 1.52 1.05 687
2005-2006 1.26 1.07 850
2006-2007 1.33 1.30 1032
2007-2008 1.37 1.42 1092
2008-2009 1.22 1.35 1162
2009-2010 1.39 1.38 1048 Source:Fully revised estimates of Principal crops in karnataka for the year 2012
It is evident from the above table that it is varied from 1.93 lakh hectare
in 2001-02 to 1.39 lakh hectares in 2009-10. It is observed that the minimum
dry chilli area is 0.70 lakh hectares in 2003-04 and maximum area is 1.93 lakh
hectares in 2001-02.
It is clear from the above table that the production of dry chilli is varied
from 1.26 lakh tonnes in 2001-02 to 1.38 lakh hectare in 2009-10. The
production of dry chilli registered a minimum of 0.95 lakh tonnes in 2003-04
and a maximum of 1.53 lakh tones in 2002-03.
Fluctuating trends can be seen in yield per hectare per kg of dry chillies.
It is varied from 655 kgs in 2001-02 to 1048 kgs in 2009-10. The yield per
hectare per kg of chilli registered a minimum of 655 kgs in 2001-02 and a
maximum of 1352 kgs in 2003-04.
49
District Scenario
Area, Production and Yield of Dry Chillies in Dharwad District:
Dry chilles has been a major cash crop in the district of Dharwad which is
part of the undivided old Dharwad district. The following table provides the
details of the area production and yield of dry chilli in these newly formed
districts.
Table No. 2.3
Dharwad District Scenario
Area, Production and Yield of Dry chillies in Dharwad District.
Area, production and yield Per Hecter of Dry chillies.
Year Area [in hecters]
Production [in tonnes]
Yield in kgs per hecters
2001-2002 65992 30865 468
2002-2003 56268 51598 917
2003-2004 21725 27699 1275
2004-2005 57559 26880 467
2005-2006 44299 23567 532
2006-2007 49262 29951 640
2007-2008 48915 28997 624
2008-2009 50974 37723 779
2009-2010 52794 25880 516
2010-2011 41230 18205 465 Source:Directorate of Economics & Stastics-Banlore. Fully revised Estimates of
Principal Crops in Karnataka for the year 2012.
It is evident from the above table that area of dry chilli in Dharwad district
is varied from 659992 hectare in2001-02 to 41230 hectare in 2010-11. The
minimum dry chilli area is 21725 hectare in 2003-04 and a maximum area is
65992 hectares in 2001-02.
The production of dry chilli varied from 30865 tonnes in 2001-02 to
25880 tonnes in 2009-10. The production of dry chilli registered a minimum of
23567 tonnes in 2005-06 and a maximum of 51598 tones in 2002-03.
50
Fluctuating trends can also be seen in yield per hectare per kg of dry
chillies. It is varied from 468 kgs in 2001-02 to 516 kgs in 2009-10. The yield
per hectare per kg of chilli registered a minimum of 467 kgs in 2004-05 and a
maximum of 1275 kgs in 2003-04.
Navalgund Taluka Scenario Navalgund is one of the major chilli producing taluka place in Dharwad
district. The details of the area under the chilli crop production and yield are
provided in the following table.
Table No.:-2.4 Navalgund Taluka Scenario
Area, Production and Yield Per Hecter of Dry Chillies in Navalgund Taluka
Year Area [in hecters]
Production [in tonnes]
Yield in kgs per hecters
2004-2005 11339 5840 515
2005-2006 8520 4984 585
2006-2007 8616 6065 704
2007-2008 11454 7857 686
2008-2009 16455 14102 857
2009-2010 19383 11009 568
2010-2011 12520 58218 465 Source:District Statistical office Dharwad. From 2004-05 to 2009-10
The details in the above table indicate that an overall trend of
fluctuations with general moment of decline is the total area under dry chilly
crop in Navalgund taluk during the period from 2004-05 to 2010-2011. The area
under chilly crop varied from 11339 hecters in 2004-05 to 19383 hecters in
2009-10. The minimum area of 8520 hecters in 2005-06 and maximum of
19383 hecters in 2009-10. The production varied from 5840 tonnes in 2004-05
to 11009 tonnes in 2009-10. The minimum production of 4984 tonnes in 2005-
06 and maximum of 14102 tonnes in 2008-09. The yield per hecter varied from
515kgs in 2004-05 to 568kgs in 2009-10. The minimum yield per hecter is
515kgs in 2004-05 and a maximum of 857kgs 2008-09.
********
51
CHAPTER – III
PROFILE OF CHILLY –GROWING FARMERS
COVERED BY THE STUDY
The analysis in this chapter pertains to a detailed profile of the farmers
engaged in the production and marketing of chilly crop in the two Provincal
Hobli villages in Navalgund taluk of Dharwad district. A total number of 200
farmers have been covered here for an intensive study of their production and
marketing operations. A sample of 20 chilly growing farmers has been selected
from each of the ten villages and weightage is given to large and small farmers
among these selected 200 farmers. The profile covers information on the
demographic characteristics like age and sex composition of the respondent
farmers, their educational status, size of the family, occupational and income
status, religious and caste affiliations, martial status, ownership of residential
buildings, vehicles, livestock residential buildings, land ownership, nature of
farming, type of soil, type of crops grown etc have studied.
The details thus collected have been provided with necessary statistical
data which provide the socio-economic background of the respondent farmers
and the direct or indirect impact of these details on their farm and marketing
operations etc. The statistical trends have been presented with suitable graphical
representations wherever necessary to highlight the trends.
Distribution of Sample Farmers According to their Farm Size
The sample size of 200 respondent farmers consists of 120 large farmers
and 80 small farmers from the ten villages of Navalgund taluk of Dharwad
district. Hobli wise details of the large and small size farmers in the district are
provided in the following table.
52
Table No.3.1
Distributuion of large and small farmers in the 2 Hobli village of Navalgund
Taluka of Dharwad District.
Hobli Large Pc Small Pc Total Pc
A] ANNIGERI
1] Basapur 14 70 06 30 20 100
2] Bhadrapur 16 80 04 20 20 100
3] Hallikeri 07 35 13 65 20 100
4] Nalavadi 10 50 10 50 20 100
5] Saidapur 08 40 12 60 20 100
B] MORAB
1] Yamanur 13 65 07 35 20 100
2] Tirlapur 15 75 05 25 20 100
3] Shanwad 08 40 12 60 20 100
4] Shirakol 10 50 10 50 20 100
5] Halkusugal 08 40 12 60 20 100
TOTAL 109 54.50 91 45.50 200 100%
Source: Field Survey
The selection of large and small farmers engaged in the production of
chilly crops is based on their relative numerical strength in each of the five
villages in two Hoblies in Navalgund taluka. Hence it is clear from the details
in the above table that small farmers are relatively less in thefive villages of two
Hoblies in Navalgund taluka in same order. However small farmers are found
more inBasapur, Bhadrapur, Yamunur and Trilapur villages. Size of the land of
the farmers has an impact on their income earning capacity and also on their
capacity to retain their produce during times of falling prices. They cannot store
53
their produce due to lack of storage facilities. Their financial needs may force
them to dispose of their produce locally at unremunerative prices and thereby
suffer heavy losses.
Age Composition of Farmers
Details regarding the age composition of the 200 respondents provide
some significant trends in the ten villages of two Hoblies in Navalgund taluk.
Maximum number of 102 respondent farmers belonged to the advanced age
group of 40 to 50 years followed by 72 farmers in the age group of 50 years and
above and a minimum of 66 respondent farmers belonged to the age group of 30
to 40 years.
The following table provides the details.
Table No.3.2
Age composition of Farmers
Taluka 30 to 40 yrs
Pc 40 to 50 yrs
Pc 50 yrs above
Pc Total Pc
A] ANNIGERI
1] Basapur 05 25 11 55 04 20 20 100
2] Bhadrapur 11 55 07 35 02 10 20 100
3] Hallikeri 06 30 12 60 02 10 20 100
4] Navlavadi 06 30 11 55 03 15 20 100
5] Saidapur 04 20 10 50 06 30 20 100
B] MORAB
1] Yamanur 06 30 11 55 03 15 20 100
2] Tirlapur 10 50 06 30 04 20 20 100
3] Shanwad 07 35 12 60 01 05 20 100
4] Shirakal 05 25 09 45 06 30 20 100
5] Halkusugal 04 20 11 55 05 25 20 100
TOTAL 64 - 100 - 36 - 200 100
Source:Field Survey
The details in the above table indicate some contrasting trends. Maximum
number of 06 respondents in saidapur of annigeri and shirkol of morab province
are found and belonged to the age group of 50 years and above, followed by 12
54
farmers in Hallikeri and Shanwad in 40-50years age group and a minimum of 4
each in Saidapur and Halkusugal were in the age group of 30-40 years.
Economically active population of farmers covered by the study is
maximum. Farmers in the advanced age of 50 years and above are is also
substantial. Age composition of the farmers has a bearing on the decision-
making organizing and management in the production and marketing
operations. Farmers in the younger age group have the advantage of physical
mobility for contacting the market intermediaries, APMC and other
organisations for obtaining information on modern techniques of production and
production related operations and in obtaining information on marketing related
aspects like demand, price and other aspects.
Sex Composition of Farmers
The information obtained from the selected 200 respondents indicated
that all of them were male farmers engaged in the production and marketing of
chilli in the 10 villages of Annigeri and Morab provinces of Navalgund taluk of
Dharwad district. This trend is obviously in conformity with the traditional
pattern of male oriented occupation of agriculture in the country.
Educational Status of Farmers
The educational status of the 200 farmers selected for the study in
Dharwad district indicate some divergent trends both in relation to the level of
education and in relation to each of the 10 villages of Annigeri and Morab
provinces of Navalgund taluk of Dharwad district.
It is significant to note that maximum number of 78 farmers had only
secondary education followed by 71 farmers with primary education and 37
farmers with higher education. However 14 farmers had other type of
educational
background (i.e.. higher & others). The following table provides the details.
55
Table No. 3.3
Educational Status of Farmers
Province Primary Pc Secondary Pc Higher Pc Other Pc Total Pc
A] ANNIGERI
1] Basapur 08 40 07 35 03 15 02 10 20 100
2] Bhadrapur 06 30 09 45 04 20 01 05 20 100
3] Hallikeri 05 25 11 55 03 15 01 05 20 100
4] Navlavadi 10 50 04 20 04 20 02 10 20 100
5] Saidapur 08 40 08 40 03 15 01 05 20 100
B] MORAB
1] Yamanur 06 30 07 35 05 25 02 10 20 100
2] Tirlapur 06 30 09 45 04 20 01 05 20 100
3] Shanwad 05 25 09 45 05 25 01 05 20 100
4] Shirakal 08 40 07 35 03 15 02 10 20 100
5]
Halkusugal
09 45 07 35 03 15 01 05 20 100
TOTAL 71 - 78 - 37 - 14 - 200
Source:Field Survey
It is clear from the details in the above table that maximum number of 10
respondent farmers in Navadi village had primary education followed by 09
farmers in Halkusugal and 08 farmers each in Basapur, Saidapur and Shirkol of
two Hoblies in Navalgund taluk.
Hallikeri with 11 farmers had maximum number of respondents with
secondary education followed by Basapur, Trilapur, Shanwad villages with 09
farmers each in two Hoblies ofNavalgund taluka.
The maximum number of 05 respondent farmers each in Yamanur and
56
Shanwad villages had higher education followed by 4 farmers each in
Bhadrapur, Nalavadi and Tirlapur of two Hoblies in Navalgund taluk.
Basapur, Nalavadi, Yamanur and Shirkol villages had 02 farmers each
with other educational qualification followed by remaining five villages with 01
farmer each in the two hoblies of Navalgund taluk.
Educational status has its impact on the efficiency and the quality of
performance of operations in agriculture as in any other type of industry or
occupations. The above details indicate that the majority of respondent farmers
had primary or secondary education which naturally had good impact on their
occupational efficiency. It is an encouraging factor to note that none of the 240
selected respondent farmers were found to be illiterate.
Size of the Farmers’ Families
The total number of male members of the552 farmers are in 10 villages of
Annigeri and Morab Provinces of Navalgund taluka of Dharwad district. While
the total number of female members was 496. The total number of children of
the 404 are selected from farmers of the each of 10 villages of Annigeri and
Morab provinces of Navalgund taluk of Dharwad district.. The following table
provides the details.
57
Table No. 3.4
Size of Families of the Farmers
Province Male Pc Female Pc Children Pc Total Pc
ANNIGERI 296 53.62 286 57.66 210 51.98 792 54.55
MORAB 256 46.38 210 42.34 194 48.02 660 45.45
TOTAL 552 100 496 100 404 100 1452 100
Source:Field Survey
Caste wise Distribution of farmers
Caste wise distribution of the 200 selected farmers indicate that
maximum number of 155 respondents belonged to castes which are included in
General Merit Categories as per Government rules followed by 20 farmers
belonging to scheduled castes, 11 farmers belonging to scheduled Tribes and 14
farmers belonging to the other categories. The following table provides the
details.
Table No.3.5
Caste wise Distribution of Farmers
Province SC Pc ST Pc GM Pc Others Pc Total
ANNIGERI 09 45 05 45.45 80 51.61 06 42.86 100
MORAB 11 55 06 54.55 75 48.39 08 57.14 100
TOTAL 20 100 11 100 155 100 14 100 200
Source:Field Survey
Occupational Pattern of Farmers
It is significant to note that the occupation of all the 200 selected farmers
was agriculture. The following table provides the details.
58
Table No. 3.6
Occupational Pattern of Farmers
Province Agriculture Pc Non-Agriculture
Pc Total
ANNIGERI 100 100 - - 100
MORAB 100 100 - - 100
TOTAL 200 100 - - 200 Source:Field Survey
Income Status of farmers
Maximum number of 156 farmers covered by the study had an annual
income of Rs.50000 or below it. A smaller number of 31 respondent farmers
had an annual income of Rs.50000 to Rs.100000. A still smaller number of 13
respondent farmers had an annual income of Rs.100000 and above. The
following table provides the details
Table No.3.7
Income Status of Farmers
Province 50000 Below
Pc 50000 to 1 lakh
Pc 1 lakh & above
Pc Total
ANNIGERI 76 48.72 16 51.61 08 61.54 100
MORAB 80 51.28 15 48.39 05 38.46 100
TOTAL 156 100 31 100 13 100 200 Source: Field Survey
The details in the above table indicate that 156 farmers in two provinces
comprising ten villages had an annual income of Rs.50,000 or less followed by
31 farmers in the income of Rs50,000 to Rs.1lakh followed by 13 farmers in the
income group of Rs. 1 lakh and above.
The income status of the maximum number of 156 respondent farmers is
very low since their annual income is less than Rs.50000. With such low income
their capacity to maintain a decent living is limited. More over their ability to
59
improve their farm operations too is constrained by such meager income. Such
meager income in the wake of rising input cost in their agriculture gets eroded
further. A further discouraging factor is that all the 240 respondent farmers
depend on their agriculture alone and they don‟t have any other source of
income.
Fixed Assets of the Farmers The respondent farmers owned residential buildings, vehicles, livestock
and lands etc. indicating their investments in such assets. The following analysis
provides the details of these assets of the 200 selected farmers in the study area.
Residential House All the 200 sample farmers owned their residential houses except 4
farmers in Annigeri and Morab provinces who stayed in a rented house. The
following table provides the details.
Table No.3.8
Residential Houses of Farmers
Province Owned Pc Rented Pc Farm House
Pc Total
ANNIGERI 95 49.74 02 50 03 60 100
MORAB 96 50.26 02 50 05 40 100
TOTAL 191 100 04 100 05 100 200
Source:Field Survey
Livestock of the farmers All the respondent farmers owned three types of livestock viz. Bullocks,
Cows and Buffaloes. Maximum number of 338 bullocks was owned by the 200
farmers covered by the study. The number of cows and buffaloes owned by
them was 254 and 164 respectively. The following table provides the details.
60
Table No.3.9
Livestock Assets of the Farmers
Province Bullocks Pc cows Pc Buffaloes Pc Total
ANNIGERI 190 48.97 130 51.18 106 64.63 426
MORAB 198 51.03 124 48.82 58 35.37 380
TOTAL 388 100 254 100 164 100 806
Source:Field Survey
The 100 respondent farmers in Annigeri had the maximum number of
190 bullocks followed by farmers in Morab province 198 Bullocks. Farmers in
Annigeri province again led others with 130 cows followed by farmers in
Morab with 124 cows. Farmers in Annigeri province again led others with
maximum of 106 buffaloes followed by farmers in Morab province with a
maximum of 58 Buffaloes.
The practice of owning livestock by the agricultural families is
common feature in India since there is a good deal of complementarity between
agricultural operations and animal husbandry.
Vehicles of Farmers
Transport facilities are essential for any productive activities and
agriculture is no exception to this. Transport needs of agriculture relate to
carrying of agricultural implements and agricultural inputs to the land sites and
for taking back the fodder and the agricultural produce to the residences or to
the market place. Every farmer will own one type of transport vehicles or the
other. The respondents covered by the study have indicated three type of
vehicles owned by them. The following table provides the details.
61
Table No. 3.10
Vehicles of Farmers
Province Cart Pc Tractors Pc Two
wheelers
Pc Others Pc Total
ANNIGERI 65 46.43 50 43.48 75 51.72 150 46.15 340
MORAB 75 53.57 65 56.52 70 48.28 175 53.85 385
TOTAL 140 100 115 100 145 100 325 100 725
Source: Field Survey
The details in the above table indicate that the 100 respondent farmers in
the five villages of Annigeri province owned 65 carts, 50 tractors, and 75 two
wheelers. There were a total number of 340 vehicles owned by these 100
respondent farmers.
The 100 respondent farmers in Morab province have owned 75 cart,65 tractors
and 70 two wheelers and others in the both provinces are 325 in total.
Lands Owned and Rented by Farmers
The farmers in the 10 villages covered by the study in the Navalgund
taluk have owned lands and and some farmers had been cultivating rented lands
too. However, no respondent farmers (20 each) in the villages of Navalgund
taluka were not cultivating rented lands. The following table provides the
details.
Table No. 3.11
Owned and Rented Lands of Farmers
Province Types of land
Acres Pc No. of Farmers
A] ANNIGERI
1] Basapur Owned 280 75.27 20
Rented 92 24.73
2] Bhadrapur Owned 320 86.49 20
Rented 50 13.51
3] Hallikeri Owned 250 69.44 20
Rented 110 30.56
62
4] Navlavadi Owned 350 81.40 20
Rented 80 18.60
5] Saidapur Owned 315 76.83 20
Rented 95 23.17
Total Owned 1515 100
Rented 427
B] MORAB
1] Yamanur Owned 320 76.19 20
Rented 100 23.81
2] Tirlapur Owned 360 75.00 20
Rented 120 25.00
3] Shanwad Owned 330 78.57 20
Rented 90 21.43
4] Shirakal Owned 300 80.00 20
Rented 75 20.00
5] Halkusugal
Owned 345 83.13 20
Rented 70 16.87
TOTAL Owned 1655 100
Rented 455 Source:Field Survey
The 200 respondent farmers in 10 villages of Navalgund taluk cultivated
a total of 4052 acres of land. Province wise 20 farmers each covered by the
study in Annigeri province owned and cultivated maximum of 350 acres of land
followed by 20 farmers each in Annigeri province cultivating 1515 acres owned
land and 427 acres rented land, where as the farmers in Morab province owned
and cultivated 1655 acres of land and rented land of 455 acres.
The above details clearly indicate that the farmers have been cultivating
largely their own land and only marginally ther are cultivating rented land.
Irrigated and Non-Irrigated Land of Farmers
The responses and the data provided by the 200 farmers indicate
that all part of the land cultivated by them is non irrigated. The non irrigated
part of their land ranged from a minimum of 360 acres in case of Hallikeri
farmers in Annigeri province and the maximum of 480 acres in case of Tirlapur
farmers of Morab province. The following table provides the details.
63
Table No. 3.12
Irrigated and Non-Irrigated Lands of Farmers
Province Types of land
Acres Pc Total
A] ANNIGERI
1] Basapur Irrigated - - -
Non-Irrigated
372 100 20
2] Bhadrapur
Irrigated - - -
Non-Irrigated
370 100 20
3] Hallikeri Irrigated - - -
Non-Irrigated
360 100 20
4] Navlavadi
Irrigated - - -
Non-Irrigated
430 100 20
5] Saidapur Irrigated - - -
Non-Irrigated
410 100 20
TOTAL Irrigated - - -
Non-Irrigated
1942 - 100
B] MORAB
1] Yamanur Irrigated - - -
Non-Irrigated
420 100 20
2] Tirlapur Irrigated - - -
Non-Irrigated
480 100 20
3] Shanwad Irrigated - - -
Non-Irrigated
420 100 20
4] Shirakal Irrigated - - -
Non-Irrigated
375 100 20
64
5] Halkusugal
Irrigated - - -
Non-Irrigated
415 100 20
TOTAL Irrigated - - -
Non-Irrigated
2110 - 100
It is evident from the details in the above table that the farmers of
Annigeri province had 1942 acres of land with non irrigated followed by the
farmers in Morab province who had 2110 acres of non irrigated land. The total
non irrigated land is 4052 acres in the entire Navalgund taluk . It is clear from
the above table that the farmers of Annigeri province had maximum of 410
acres of land with non irrigation followed by the farmers in Morab province
who had 480 acres of non irrigated land. Thus the total land utilized for growing
the chilly crops and other crops is 4052 acres.
Type of Land Cultivated by Farmers
The 100 farmers in Annigeri province covered by the study had maximum of
land with black soil 1942 acres followed by the farmers in Morab province with
2110 acres of black soil. No farmers in province of the taluk was covered by the
red soil. The total land of black soil is 4052 acres. The following table provides
the details
Table No.3.13
Type of land cultivated by Farmers
Province Types of
land
Acres Pc Total
A] ANNIGERI 1] Basapur Black soil 372 100 20
Red soil - - -
2] Bhadrapur Black soil 370 100 20
Red soil - - -
65
3] Hallikeri Black soil 360 100 20
Red soil - - -
4] Navlavadi Black soil 430 100 20
Red soil - - -
5] Saidapur Black soil 410 100 20
Red soil - - -
TOTAL Black soil 1942 - 100
Red soil - -
B] MORAB
1] Yamanur Black soil 420 100 20
Red soil - - -
2] Tirlapur Black soil 480 100 20
Red soil - - -
3] Shanwad Black soil 420 100 20
Red soil - - -
4] Shirakal Black soil 375 100 20
Red soil - - -
5]
Halkusugal
Black soil 415 100 20
Red soil - - -
TOTAL Black soil 2110 - 100
Red soil - -
Source:Field Survey
It is clear from the above table that 20 farmers each in the villages of
Annigeri province covered by the study owned a maximum of 430 acres of
black soil in Nalavadi followed by the farmers in Saidapur with 410 acres,
66
Basapur with 372 acres, Bhadrapur with 370 acres and Hallikeri with 360 acres.
The farmers in Morab province covered by the study owned a maximum of 480
acres of black soil in Tirlapur followed by farmers in Yamanur and Shanwad
with 420 acres each and Halkusugal and Shirkol with 415 acres and 375 acres
respectivelys.
The type of the soil has its own impact on the pattern of crops grown on
the same. Hence this pattern of soil of the land of the farmers has a direct impact
on the farm operations.
Crop Pattern in Different Talukas
The data collected from the respondent farmers in the ten villages of
Navalgund taluka shows some significant trends about the type of crops grown
by them. The total area under the cash crops in the ten villages of Navalgund
taluka belonging to 200 farmers covered by the study was 4052 acres. This is
the maximum area under cash crop grown by the respondent farmers in the
taluk. The area under crops grown by the 200 respondent farmers in the taluka
were Dry chilly [1760 acres], Cotton [904 acres], Ground Nut [838], Wheat
[303acres] and Jowar [247 acres]. These details indicate that the respondent
farmers have devoted maximum area of their lands for growing dry chilly
compared to other crops. The remunerative price and the higher income from
this crop have been the major factors leading to the maximum area devoted for
this commercial crop. Cotton which is the major commercial crops grown by the
farmers in the noth Karnataka which is more suitable for the black soil for
cultivation. This accounts for the second largest area of the lands owned by the
respondent farmers in the study area followed by ground Nut [838 acres], Wheat
[303 acres] and Jowar [247 acres]. The following table provides the details of
the land area of the respondent farmers in the ten villages of Navalgund taluka
under different crops.
67
Table No. : 3.14 [table to be inserted]
A) ANNIGERI
Province Land Chilly Pc Cotton
Pc
Ground
nut
Pc Wheat
Pc Jawar
Pc
No. of
farmers
1] Basapur Acres-372 172 46.24 74 19.89 75 20.16 29 7.80 22 5.91 20
Irrigated - - - - - - - - - -
Non-Irrigated 172 46.24 74 19.89 75 20.16 29 7.80 22 5.91
2] Bhadrapur Acres-370 151 40.81 74 20.00 79 21.35 37 10.00 29 7.84 20
Irrigated - - - - - - - - - -
Non-Irrigated 151 40.81 74 20.00 79 21.35 37 10.00 29 7.84
3] Hallikeri Acres-360 144 40.00 82 22.78 74 20.56 32 8.88 28 7.78 20 Irrigated - - - - - - - - - -
Non-Irrigated 144 40.00 82 22.78 74 20.56 32 8.88 28 7.78
4] Nalavadi Acres-430 206 47.91 87 20.23 95 22.10 25 5.81 17 3.95 20
Irrigated - - - - - - - - - -
Non-Irrigated 206 47.91 87 20.23 95 22.10 25 5.81 17 3.95
5] Saidapur Acres-410 180 43.90 86 20.98 83 20.24 33 8.05 28 6.83 20
Irrigated - - - - - - - - - -
Non-Irrigated 180 43.90 86 20.98 83 20.24 33 8.05 28 6.83
B) MORAB
Province Land Chilly Pc Cotton
Pc
Ground
nut
Pc Wheat
Pc Jawar
Pc
No. of
farmers
1] Yamanur Acres-420 177 42.14 96 22.86 97 23.10 29 6.90 21 5.00 20
Irrigated - - - - - - - - - -
Non-Irrigated 177 42.14 96 22.86 97 23.10 29 6.90 21 5.00 2] Tirlapur Acres-480 216 45.00 107 22.29 105 21.88 28 5.83 24 5.00 20
Irrigated - - - - - - - - - -
Non-Irrigated 216 45.00 107 22.29 105 21.88 28 5.83 24 5.00
3] Shanwad Acres-420 162 38.57 101 24.05 87 20.71 37 8.81 33 7.86 20
Irrigated - - - - - - - - - -
Non-Irrigated 162 38.57 101 24.05 87 20.71 37 8.81 33 7.86
4] Shirakol Acres-375 161 42.94 110 29.33 71 18.93 18 4.80 15 4.00 20
Irrigated - - - - - - - - - -
Non-Irrigated 161 42.94 110 29.33 71 18.93 18 4.80 15 4.00
5] Halkusugal Acres-415 191 46.02 87 20.96 72 17.35 35 8.44 30 7.23 20
Irrigated - - - - - - - - - -
Non-Irrigated 191 46.02 87 20.96 72 17.35 35 8.44 30 7.23
TOTAL 4052 1760 43.44 904 22.31 838 20.68 303 7.48 247 6.09 200
68
The province wise data indicate that area under chilly crop of the 20 farmers
each in Nalavadi and Tirlapur village was the maximum of 206 acres and 216
acres respectively in the entire Navalgund taluk. The next village with highest
area of land under chilly crop was Halkusugal where the 20 respondents farmers
cultivated a chilly crop on 191 acres under non irrigated land. Farmers in
Saidapur and Yamanur villages had cultivated a chilly crop on 180 acres and
177 acres respectively. Chilly was grown relatively at a smaller area of 144
acres in Hallikeri village by 20 respondent farmers.
Cotton is the another major oil seed crop grown in the Navalgund taluk
by the respondent farmers.20 each respondent farmers had cultivated a
maximum area of cotton in Shirkol with 110 acres of land followed by the
farmers in Tirlapur, Shanwad, Yamanur, Halkusugal and Saidapur with 107,
101, 96, 87and 86 acres respectively of two Hoblies in the entire Navalgund
taluk. Cotton was grown relatively at smaller area of 74 acres each in Basapur
and Bhadrapur villages.
The respondent farmers growing groundnut have been using part of their
lands for growing food crops like Wheat and Jowar. Next only to 838 acres of
land used for growing groundnut. Area under Wheat is also substantial of 303
acres while area under Jawar is only 247 acres.
Groundnut is grown by 200 respondent farmers in two province of entire
Navalgun talukof which farmers in Tirlapur cultivated a mximum ares of 105
acres followed by the farmers in Yamanur 97 acres, Nalavadi 95 acres,
Shanwad 87 acres ,Saidapur 83 acres Bhadrapur 79 acres, Basapur 75 acres,
Hallikeri 74 acres, Halkusugal 72 acres. The minimum area of land cultivated
for groundnut crop in the entire Navalgund taluk is 71 acres in Shirkol village.
Wheat is grown by the 100 respondent farmers in Annigeri province
with a maximum area of 37 acres in Bhdrapur and a minimum of 25 acres in
Nalavadi villages, on the contrary with a maximum area of 37 acres in Shirkol
69
and a minimum of 18 acres in Shirkol villages.
Jawar is grown by the 200 respondents farmers in the two Hoblies of
the entire Navalgund taluk in a maximum area of 33 acres in Shanwad village
and a minimum area of 15 acres in Shirkol village both are belongs to Morab
province in Navalgund taluk. However the maximum and minimum area of
Jawar in Annigeri province is 29 acres and 17 acres in Bhdrapur and Nalavadi
villages respectively.
The above analysis reveals that the farmers covered by the study area
have been engaged in growing more than one crop on their lands and the chilly
crop accounts the maximum area of their total land as compared to the area
provided for growing cotton Groundnut, wheat and jawar crops in the entire
Navalgund taluk of the Dharwad district.
70
Profile of APMCs and the Market Intermediaries operating in the
study area:
Annigeri Agricultural Produce Market Committee:
[Main APMC Head office of Navalgund Taluka]
The APMC was established under the Bombay Agriculture Produce Market Act
of 1939 on 05-02-1948 and has been functioning well for the last 60 years and
has its jurisdiction over the Navalgund taluka at 59 villages and 149746 hectares
of cultivable area. The APMC has 4 sub-markets i.e. in Navalgund, Morab,
Shelavadi and Hebbal. The Annigeri APMC is located on an area of 25.03 acres
and its sub-markets are located on an area as under:
Sub-markets Area
Navalgund 14.29 Acre
Morab 10.00 ‟‟
Shelavadi 05.00 ‟‟
Hebbal 10.38 ‟‟
Regulated Agricultural Produce:
The APMC has a total of 113 Regulated Agricultural Produce including Animal
Husabandry-Livestock Goat Sheeps. The APMC has covered under the
Regulated Agricultural Produce, Cotton, Ginned Cotton, Wheat, Jowar, Maiz
and Dry Chilies as major agricultural produce.
Sale procedure of Regulated produces:
The details of sale procedure of regulated produce are given in the following
table.
71
Table3.15
Sale Procedure of Regulated Produce
Sl. No. Produce Method of sale
1 Cotton, Ginned Cotton. Tender system and
Auction system
2 Dry chilies, Jowar, Maiz, Wheat Mutual agreement
3 Live stock, Goats and sheeps Mutual agreement
Source: APMC Annual Report 2011-12
Market Cess, Licence fees and other incomes:
The details of Market Cess, Licence fees and other incomes collected by
the Annigeri APMC during the five years from 2007-08 to 2011-12 are
provided in the following table.
Table3.16
Market Cess, Licence fees and other fees collected by the Annigeri APMC
(in rupees)
Year Market cess Licence fees Other fees Total
2007-2008 12900000 32100 2000.00 12934100
2008-2009 4304701 34795 247026 4586522
2009-2010 10176804 54459 345768 10577031
2010-2011 13264591 50250 674243.32 13989084.32
2011-2012 12184704 62420 742338 12989462
Source: APMC annual report 2011-12
Market Cess collections have varied from Rs. 12900000 in 2007-08 to Rs.
12184704 in 2011-12. The receipts from license fees have fluctuated from
2007-08 to 2011-12. Other fees collected by Annigeri APMC have also
fluctuated from 2007-08 to 2011-12.
72
Financial position:
The details of financial position of Annigeri APMC during 2009-10 to 2011-12
are provided in the following table
Table3.17
Income and Expenditure and Savings of Annigeri APMC
(in rupees)
Years Income Expenditures Savings
2009-2010 10577027 7351288 3225739
2010-2011 13989084.32 9193146 4795938
2011-2012 12989462 9169191 3820271
Source: APMC Annual Report 2011-12
The total income of the Annigeri APMC reached its maximum level in 2010-
2011 but went down to a minimum level of Rs. 10577027 in 2009-10.
Expenditure of the APMC reached its maximum of Rs.9193146 in 2010-11 and
was the minimum of Rs. 7351288 in 2009-2010. Savings were the highest at Rs.
4795938 in 2010-11.
Arrivals of Major Agricultural Produce at Annigeri APMC:
The details of arrivals of major agricultutal produce at Annigeri APMC
from 2009-10 to 2011-12 are given in the following table.
73
Table3.18
Arrival of major Agricultural Produce at Annigeri APMC
Sl. No.
Agri products 2009-2010 2010-2011 2011-2012
Arrivals Rate Value Arrivals Rate Value Arrivals Rate Value
1 Cotton Jayadhar 36264 2350 85220400 30157 2600 78408200 23797 3820 90904540
2 Ginned cotton Jayadhar
2518 5525 13911950 3450 6300 21735000 2418 8160 19730880
3 Dry chillies 1773 10500 18616500 2873 800 22984000 2309 10000 23090000
4 Maize 561143 840 471360120 437451 840 367458840 254397 980 249309060
5 Onion NIL NIL NIL 75 610 45750 NIL NIL NIL
6 Sunflower 611 2300 1405300 3444 2225 7662900 2267 21867 6499489
7 Jowor 115 700 80500 NIL NIL NIL 20 650 53000
8 Wheat 13974 1400 19563600 6331 1385 8768435 15040 1230 18499200
9 Hesaru 473 4250 2010250 17 3400 57800 NIL NIL NIL
10 Gram 10004 2130 21308250 11576 1950 22573200 7042 2500 17605000
11 B.T.Cotton 11778 3250 38278500 45798 4000 183192000 53947 3895 208505155
12 Ginned B.T.Cotton
1036 600 7044800 20086 7000 140602000 5677 9000 51093000
13 Cotton seeds NIL NIL NIL 1567 1000 1567000 2564 1300 3333200
Source: APMC Annual Report 2011-2012
Market Intermediaries in Annigeri APMC:
There were good number of market intermediaries in the Annigeri APMC also
which consisting of commission agents, purchasers and others. The total
number of these market intermediaries went up from 459 in 2009-10 to 600 in
2011-12. The following table provides the details.
Table3.19
Market Intermediaries in Annigeri APMC (No. of persons)
Sl.
No. Years
Commission
Agents Purchasers Others Total
1 2009-2010 13 49 397 459
2 2010-2011 13 65 517 595
3 2011-2012 15 76 509 600
Source: APMC Annual Report 2011-12
74
Table3.20
Production of Dry Chilly, sales quantity and value
sl.no Years Production[in
Qty]
Sales[in
Qty]
Value[in
Rs]
1 2009-2010 1773 1773 18616500
2 2010-2011 2873 2873 22984000
3 2011-2012 2309 2309 23090000
Source:ibid
The total sales value of Annigeri APMC reached it`s maximum level in
2011-2012 but went down to a minimum level of Rs.18616500 in 2009-2010.
Developmental Works on the APMC Campus:
The APMC has provided various facilities on its premises at Annigeri. The
major works includes Sales Bhavan, Office Building, Raita Bhavan, Livestock
Yard, Water facility for Livestock, Roads within the market yard, Canteen,
Warehouse, Auction Platform, Electricity, Platform for drying the produce,
Latrine, Drainages etc,.
Other Programmes:
The APMC has introduced “ Raita Sanjeevani Accident Insurance Plan” for
thye benefit of the farmers and has distributed insurance compensation to the
farmers to a tune of Rs. 641000/- till today.
The APMC has informed and advertised for availing the benefit of „Mortagaged
Loan Plan‟ for all the formers coming under the jurisdiction at APMC yard and
Rs. 2,15,500/-. Fund is kept reserved for the said plan during the year 2001-02.
The APMC has also distributed insurance amount of
Rs. 1,50,000/- under the “Hamals Insurance Scheme” to seven persons during
the corresponding period.
75
The APMC has provided link roads connecting villages with the help of PWD.
It has acquired a land of 5 acres and 10 acres for Shelavadi sub-market
extension and Morab sub-market extension respectively during the
corresponding period.
Profile of Market Intermediaries:
The study covered a total number of 10 market intermediaries in the
Navalgund taluk of APMC in Dharwad district. The details of the number
market intermediaries in the taluka have been provided in the following table.
Table No.3.21
Market Intermediaries in Navalgund taluka
Sl. NO. Taluka No. of Market Intermediaries
1 Navalgund 10
Source – Field Survey
Age Composition of Intermediaries:
The data collected from the respondent market intermediaries revealed that all
the 10 intermediaries are in the Navalgund taluk among them 3 respondents
were in the age group of 25-50 years and the 7 respondents were in the age
group of 50 years and above. The following table provides the details.
Table No.3.22
Age Composition of Intermediaries
Sl.
No. Taluka
25 to
50 yrs Percent
50yrs &
above Percent Total Percent
1 Navalgund 03 30 07 70 10 100
Source: Field Survey
Educational Status:
The educational status of the respondents indicates that 02 intermediaries
had Secodary education, 08 intermediaries were degree holders. The following
table provides the details.
76
Table No.3.23
Educational Status
SlNo. Taluka Primary
Education
Secondary
Education
Degree
Holders Total
01 Navalgund NIL 02 08 10
Source: Field Survey
It is clear from the above table that 8% of intermediaries covered by the study
were degree graduates. But no intermedriaries were belongs to primary
education.
Religious Affiliations of Intermediaries:
The information obtained during the field survey indicates that maximum
number of 08 respondent market intermediaries were Hindus. While only 02
respondents belongs to the Muslim religion.
Caste Affiliations:
It is found through personal interview that zero respondent market
intermediaries belonged to scheduled tribes while majority of 09 market
intermediaries belonged to „general‟ categories and 01 respondents belonged to
other caste groups. The following table provides the details.
Table No.3.24
Caste Affiliations of Market Intermediaries
Sl. No. Taluka SC ST General Others Total
1 Navalgund - - 09 01 10
Source: Field Survey
Major Occupation:
All the 10 market intermediaries in the Navalgund taluks of Dharwad district
have asserted that their major occupation was trade.
77
Types of Intermediaries: It is gathered from the personal interview that all the 10 intermediaries in
Navalgund taluka were commission agents. However 03 of them also worked as
wholesale merchants. Similarly 07 respondents were retail merchants while five
of them also worked as commission agents.
Duration of working as Intermediaries: Majority of 07 respondent market intermediaries have been working for the last
5 to 10 years however 03 respondents have been engaged in the profession for
10 to 15 years. The following table provides the details.
Table No. 3.25
Duration of Working as Market Intermediaries
Sl.
No. Taluka
5 to 10
years
10 to 15
years
More
than 15
years
Total
1 Nvalgund 07 03 NIL 10
Source: Field Survey
Working in the APMC:
All the 10 respondent market intermediaries are working in the respondent
APMCs and further all of them are holding licences from their APMCs.
Services Rendered to Dry Chilly Farmers: The responses obtained from the market intermediaries indicate that they help in
obtaining storage facilities, packing services, transport facilities, grading and
market information to the farmers. The following table provides the data.
Table No.3.26
Services Rendered to Farmers by the Market Intermediaries (Number of Respondents)
Taluka Storage Packing Transport Grading
Market
information
Owned Arranged Owned Arranged Owned Arranged Owned Arranged Owned Arranged
Navalgund 05 06 04 05 04 05 03 07 08 02
Source: Field Survey
It is clear from the details in the above table that many market intermediaries
arrange for the services in addition to owing the same.
78
Sales Arrangements for the Farmers: It is mentioned by all the 10 respondent market intermediaries in the Navalgund
taluka Dharwad district that they provide all the market information to the dry
chilly farmers relating to demand price and the quantity of dry chillies required
by the buyers. This would enable the farmers to affect the sales of their dry
chillies through the services of the market intermediaries.
Nature of Competition among the Intermediaries: The respondent of the market intermediaries indicate that the competition in
their profession is normal and minimum.
The Main Buyers of Cash crops: The respondent‟s responses about the main buyers of cash crops are indicated in
the following table.
Table No.3.27
Main Buyers of Dry Chillies (Percent)
Sl.
No. Taluka
No. of
middleman
Mills
Percent
Seed
cost
Percent
Seed
Merchants
Percent
Total
1 Navalgund 10 65 20 15 100
Source: Field Survey
It is clear from the details in the assbove table that 65 percent of the purchases
are made by mills while other companies and seed merchants accounts for 15%
and seed cost percentage 20. All the 10 market intermediaries are unanimous in
their opinion on this aspect.
Sale and Payment Arrangement: The respondent market intermediaries have asserted that they arrange for
immediate sale and immediate payment to the dry chilly farmers.
Price Determination: The respondent market intermediaries are unanimous in their opinion that the
price of Dry chill is determined by the buyers and especially by mills.
********
79
CHAPTER – IV
PRODUCTION DIMENSIONS OF CHILLY IN
NAVALGUND TALUKA
The discussion in this chapter is focussed on the production dimensions
of chilly in the study area comprising of ten villages in two provinces of
Navalgund taluka of Dharwad district. It is expedient to discuss the production
dimensions since they have a direct bearing on the marketing of the product
relating to volume supply cost and prices. The different aspects covered by the
discussion on the production of Dry chilly include the area covered by the chilly
crop during the five years in the ten villages in two provinces of Navalgund
taluka of the Dharwad district, quantity of the produce during the corresponding
period and the yield per acre which indicates the productivity of the land in
relation to the chilly crop. Other aspects of production dimensions of chily crop
relate to the cost of production in terms of the various components viz., tilling
and manuring cost, cost of sowing, cost of cleaning of the crop, cost of crop
cutting, cost of harvesting, cost of inputs like seeds, manure, water etc,. In
addition to these the other costs relating to infrastructure cost like, transport
cost, electricity cost, rentals for harvesting, salary of regular workers etc. are
discussed.
The discussion under the production dimensions includes other aspects
like investment in land, ownership of vehicles agricultural implements.
Financial involvement in relation to production activities and the production
technology influencing production and the employment aspects are the major
areas discussed in the chapter.
80
Area, Production and Yield of Chilly crop in Navalgund taluka:
The area under chilly crop of the 200 farmers in the ten villages in two
provinces of Navalgund taluka Dharwad district has remained almost stable
during the seven years from 2003-04 to 2009-10.
The details of the area, production and yield per hectare of chilly crop in
two provinces of Navalgund taluka in Dharwad district are indicated in the
following table.
Table No. : - 4.1
Area, output and yield per hecter of Dry chilly in Navalgund taluk
province
Year Land Annigeri Morab
2003-2004 Area Acres 661 755
Output[Quintals] 1784.7 2151.75
Yield per acres/kg 270 285
2004-2005 Area Acres 628 740
Output[Quintals] 1620.24 1998
Yield per acres/kg 258 270
2005-2006 Area Acres 635 725
Output[Quintals] 1854.2 2030
Yield per acres/kg 292 280
2007-2008 Area Acres 620 731
Output[Quintals] 2188.6 2616.98
Yield per acres/kg 342 358
2008-2009 Area Acres 629 738
Output[Quintals] 2698.41 2590.38
Yield per acres/kg 429 435
2009-2010 Area Acres 665 750
Output[Quintals] 1895.25 2160
Yield per acres/kg 285 288 Source: Field Survey
The total area under chilly crop of the 200 respondent farmers in the 10
villages of two provinces of Navalgund taluk has remain almost stable during
the 7 years from 2003-04 to 2009-10.The total area under chilly crop of 100
farmers varied from a minimum of 620 acres in 2006-07 to a maximum of 665
81
acres in 2009-10 in the Annigeri province of Navalgund taluk. However it is
varied from a minimum of 721 acres in 2008-09 and a maximum of 755 acres in
2003-04 in Morab province of the Navalgund taluk.
Province wise output of chilly crop of 100 respondent farmers in
Annigeri province varied from a minimum of 1620.24 quintals in 2004-05 to a
maximum of 2698.41 quintals in 2008-09. However the output of Morab
province varied from a minimum of 1998 quintals in 2004-05 to a maximum of
3136.35 quintals in 2008-09 in the Navalgund taluk. It is significant to note that
the output of chilly crop in all the two provinces has declined continuously
during the first 3 years.
The yield per hecter of dry chilly of the 200 respondent farmers in all the
two provinces of Navalgund taluk shown a similar trend of decline during the
first 3 years from 2003-04 to 2005-06, but a steep rise in the fourth year is
noticed during 2006-07.
The yield per hecter of dry chilly in Annigeri province varied from a
minimum of 258kgs in 2004-05 and a maximum of 429 kgs in 2008-09.
However it is varied from a minimum of 270kgs in 2004-05 and a maximum of
435kgs in 2008-09 in the Morab province of Navalgund taluk. It is noticed that
the yield per hecter of dry chilly has been more in Morab province as compared
to Annigeri province that is 435kgs per hecter in 2008-09 in the two Hoblies of
the Navalgund taluk in Dharwad District.
Cost of Production:
The data collected from the respondent farmers in the study area has
revealed some significant trends about the different costs associated with the
production of chilly crop. These different costs relate to the tilling of the land,
manuring, cleaning of the cropped area, sowing, crop cutting and harvesting.
The input costs relate to the cost of seeds, water and electricity used and
manure. Other costs related to production include vehicles maintenance, rentals
of harvesting machines and salary of regular workers. The following analysis
82
provides the details of the field investigation about the costs of production of
Dry chilly.
Cost of Tilling and Manuring (Labour Cost):
The cost ranges mentioned by the respondent farmers are Rs. 750 or less,
Rs.750 to Rs.1500 and Rs.1500 and above per acre.
The cost of tilling and manuring of an acre of land for chilly crop ranged
between Rs.750 and below in case of 8 respondent, between Rs.750 to Rs.1500
in cases of 49 and Rs.1500 and above in case 43 farmers in Annigeri province.
While in Morab province the cost ranged between below Rs.750 cases are 8
respondents, between Rs.750 to Rs.1500 cases are 45 respondents, Rs.1500 and
above are 47 farmers.
The above details are mentioned in the following table.
Table No. : - 4.2
Cost of Tilling and managing of one acre of land Province Crop Rs750
below Pc Rs750
to Rs 15000
Pc Rs15000 above
Pc Total Pc
A] ANNIGERI
1] Basapur Chilly 02 10 11 55 07 35 20 100
2] Bhadrapur Chilly 01 05 09 45 10 50 20 100
3] Hallikeri Chilly 01 05 08 40 11 55 20 100
4] Navlavadi Chilly 02 10 09 45 09 45 20 100
5] Saidapur Chilly 02 10 12 60 06 30 20 100
TOTAL 08 49 43 100
B] MORAB
1] Yamanur Chilly 01 05 12 60 07 35 20 100
2] Tirlapur Chilly 02 10 10 50 08 40 20 100
3] Shanwad Chilly 01 05 08 40 11 55 20 100
4] Shirakal Chilly 02 10 06 30 12 60 20 100
5] Halkusugal Chilly 02 10 09 45 09 45 20 100
TOTAL 08 - 45 - 47 - 100 -
Source: Field Survey
83
Cost of Sowing:
Maximum numberof respondent farmers in the ten villages of two
provinces of Navalgund taluka has mentioned that the labour cost of sowing of
chilly per acre varied between Rs.200 and Rs.400. However 32 and 36 farmers
each in Annigeri and Morab province mentioned that the per acre sowing cost
chilly was Rs.200 or less. It is significant to note that 59 and 57 farmers each in
Annigeri and Morab province mentioned that the sowing cost of chilly was
Rs.200 to Rs.400 and 09 and 07 farmers each in Annigeri and Morab province
have mentioned the sowing cost of Rs.400 and above. The details are shown in
the table.
Table No. : - 4.3
Cost of sowing chilly crop per acre
Province Crop Rs200
Below
Pc Rs200 to
Rs400
Pc Rs 400
above
Pc Total Pc
A] ANNIGERI
1] Basapur Chilly 05 25 13 65 02 10 20 100
2] Bhadrapur Chilly 06 30 13 65 01 05 20 100
3] Hallikeri Chilly 07 35 12 60 01 05 20 100
4] Navlavadi Chilly 06 30 11 55 03 15 20 100
5] Saidapur Chilly 08 40 10 50 02 10 20 100
TOTAL 32 59 09 100
B] MORAB
1] Yamanur Chilly 07 35 11 55 02 10 20 100
2] Tirlapur Chilly 05 25 14 70 01 05 20 100
3] Shanwad Chilly 08 40 10 50 02 10 20 100
4] Shirakal Chilly 09 45 10 50 01 05 20 100
5] Halkusugal Chilly 07 35 12 60 01 05 20 100
TOTAL 36 57 07 100
Source: Field Survey
84
Cost of Cleaning the Crop area:
The labour cost of cleaning the standing crop of chilly per acre was Rs.300 and
below is 02 and 01 each in Annigeri and Morab province and Rs.300 to Rs.600
according to 44 and 50 farmers in Annigeri and Morab province. However 54
and 49 farmers in Annigeri and Morab province is asserted that the labour cost
of cleaning in the chilly crop per acre was Rs.600 and above.
The above details are mentioned in the following table.
Table No. : - 4.4
Cost of cleaning the chilly crop per acre
Province Crop Rs 300
below
Pc Rs300 to
Rs 600
Pc Rs 600 Pc Total
A] ANNIGERI
1] Basapur Chilly - - 10 50 10 50 20
2] Bhadrapur Chilly - - 08 40 12 60 20
3] Hallikeri Chilly 02 10 10 50 08 40 20
4] Navlavadi Chilly - - 09 45 11 55 20
5] Saidapur Chilly - - 07 35 13 65 20
TOTAL 02 - 44 - 54 - 100
B] MORAB
1] Yamanur Chilly - - 12 60 08 40 20
2] Tirlapur Chilly - - 11 55 09 45 20
3] Shanwad Chilly 01 05 10 50 09 45 20
4] Shirakal Chilly - - 09 45 11 55 20
5] Halkusugal Chilly - - 08 40 12 60 20
TOTAL 01 - 50 - 49 - 100
Source: Field Survey
Cost of Crop Cutting:
The labour cost of cutting the harvestable crop of chilly was estimated at Rs.400
to Rs.800 per acre by 09 and 12 respondent farmers in Annigeri and Morab
province. However 64 and 59 farmers in Annigeri and Morab province asserted
85
that the cost of cutting the chilly crop was Rs.800 to Rs.1500. The cost of crop
cutting of chilly per acre at Rs.1500 and above was affirmed by 27 and 29
farmers in Annigeri and Morab province. No farmers have indicated the crop
cutting cost of Rs.400 and below.
The following table provides the details.
Table No. : - 4.5
Cost of Harvesting chilly per acre
Province Rs 400
below
Pc Rs 400
to Rs
800
Pc Rs 800 to
Rs 1500
Pc Rs 1500
above
Pc Total
A] ANNIGERI
1] Basapur - - 02 22.22 09 14.06 09 33.33 20
2] Bhadrapur - - 01 11.11 14 21.87 05 18.52 20
3] Hallikeri - - 02 22.22 16 25.00 02 07.41 20
4] Navlavadi - - 03 33.33 12 18.75 05 18.52 20
5] Saidapur - - 01 11.11 13 20.32 06 22.22 20
TOTAL - - 09 100 64 100 27 100 100
B] MORAB
1] Yamanur - - 02 16.67 14 23.73 04 13.79 20
2] Tirlapur - - 01 08.33 16 27.12 03 10.34 20
3] Shanwad - - 02 16.67 09 15.25 09 31.04 20
4] Shirakal - - 03 25.00 08 13.56 09 31.04 20
5] Halkusugal - - 04 33.33 12 20.34 04 13.79 20
TOTAL - - 12 100 59 100 29 100 100
Source: Field Survey
Cost of Seeds:
Cost of seeds per acre of chilly crop was mentioned between Rs.252 to Rs.325
by 58 and 66 respondent farmers in Annigeri and Morab province. However the
cost was mentioned at higher level of Rs.325 – Rs.400 by 31 and 46 farmers in
Annigeri and Morab province. There are 11 and 08 farmers who have
86
mentioned Rs.400 and above in Annigeri and Morab province. The following
table provides the deatails.
Table No. : - 4.6
Cost of seeds of Dry chilly per acre
Province Rs 250 to
Rs 325
Pc Rs 325 to
Rs 400
Pc RS 400
above
Pc Total Pc
A] ANNIGERI
1] Basapur 08 40 10 50 02 10 20 100
2] Bhadrapur 12 60 05 25 03 15 20 100
3] Hallikeri 14 70 03 15 03 15 20 100
4] Navlavadi 11 55 07 35 02 10 20 100
5] Saidapur 13 65 06 30 01 05 20 100
TOTAL 58 - 31 - 11 - 100 -
B] MORAB
1] Yamanur 13 65 05 25 02 10 20 100
2] Tirlapur 16 80 03 15 01 05 20 100
3] Shanwad 14 70 04 20 02 10 20 100
4] Shirakal 11 55 07 35 02 10 20 100
5] Halkusugal 12 60 07 35 01 05 20 100
TOTAL 66 - 26 - 08 - 100 -
Source: Field Survey
Cost of Rentals for Hired Land for Drying the Chilly:
Open lands are used by the farmers for drying the harvested chillies on rented
bases and rental cost is incoured every season. The rental cost of land was
Rs.500 and below as mentioned by 25 and 20 farmers each in Annigeri and
Morab province. However a large number of 75 and 80 respondent farmers had
mentioned the rental cost of Rs.500 and above per gunta in Annigeri and Morab
province.The following table provides the details.
87
Table No. : - 4.7
Cost of rental for Hired Land for Drying the Chilly per Gunta
Village Rs 500 Below Pc Rs 500 above Pc Total
A] ANNIGERI
1] Basapur 06 24.00 14 18.67 20
2] Bhadrapur 05 20.00 15 20.00 20
3] Hallikeri 04 16.00 16 21.33 20
4] Navlavadi 05 20.00 15 20.00 20
5] Saidapur 05 20.00 15 20.00 20
TOTAL 25 100 75 100 100
B] MORAB
1] Yamanur 05 25.00 15 18.75 20
2] Tirlapur 05 25.00 15 18.75 20
3] Shanwad 03 15.00 17 21.25 20
4] Shirakal 02 10.00 18 22.50 20
5] Halkusugal 05 25.00 15 18.75 20
TOTAL 20 100 80 100 100
Source: Field Survey
Cost of Wages for Regular Workers:
The annual cost wages of regular workers by the chilly growing farmers
ranged between Rs.3000 – Rs.6000 asserted by 31 and 51 farmers in Annigeri
and Morab province of Navalgund taluk. However the higher cost of wages at
Rs.6000 and above as mentioned by 69 and 49 farmers in Annigeri and Morab
province of Navalgund taluk.The annual wage cost of Rs.3000 and below has
not been mentioned by any respondent farmers in the taluk.The following table
provides the the details.
88
Table No. : - 4.8
Annual cost of wages of regular workers per acre of chilly crop.
Village Rs 3000
below
Pc Rs 3000 to Rs
6000
Pc Rs 6000
above
Pc Total
A] ANNIGERI
1] Basapur - - 06 30 14 70 20
2] Bhadrapur - - 05 25 15 75 20
3] Hallikeri - - 07 35 13 65 20
4] Navlavadi - - 04 20 16 80 20
5] Saidapur - - 09 45 11 55 20
TOTAL - - 31 - 69 - 100
B] MORAB
1] Yamanur - - 09 45 11 55 20
2] Tirlapur - - 10 50 10 50 20
3] Shanwad - - 11 55 09 45 20
4] Shirakal - - 08 40 12 60 20
5] Halkusugal - - 13 65 07 35 20
TOTAL - - 51 - 49 - 100
Source: Field Survey
INVESTMENT IN PRODUCTIVE ASSETS
Ownership of Land:
The field data have reveled that 66 and 57 each respondent farmers
owned 25 acres or less of land in Annigeri and Morab province in Navalgund
taluk. The are 22 and 31 each respondent farmers owned 25- 50 acres of land in
Annigeri and Morab province. However 12 respondent farmers own 50 acres
and above land in each province of Annigeri and Morab of the Navalgund taluk.
The following table provides the details.
89
Table No. : - 4.9
Ownership of Land
Province 25 acres below 25 acres to 50
acres
50 acres &
above
Total
A] ANNIGERI
1] Basapur 12 05 03 20
2] Bhadrapur 16 03 01 20
3] Hallikeri 15 03 02 20
4] Navlavadi 10 05 05 20
5] Saidapur 13 06 01 20
TOTAL 66 22 12 100
B] MORAB
1] Yamanur 11 06 03 20
2] Tirlapur 14 05 01 20
3] Shanwad 13 04 03 20
4] Shirakal 09 11 - 20
5] Halkusugal 10 05 05 20
TOTAL 57 31 12 100
Source: Field Survey
Current Value of Land Owned by Farmers:
The current value of land owned by the respondent farmers varied between
Rs.200000 – Rs.300000 per acre as mentioned by 12 and 21 farmers in Annigeri
and Morab province in Navalgund taluk. The current value of land varied from
Rs.300000 – Rs.400000 per acre as mentioned by 41 and 39 farmers in Annigeri
and Morab province of Navalgund taluk. However the current value of land for
Rs.400000 and above per acre as mentioned by a maximum member of 47 and
40 farmers each in Annigeri and Morab province of Navalgund taluk. The
following table provides the details.
90
Table No. : - 4.10
Current value of Land per acre
Province Rs 300000 to
Rs 350000
Rs 350000 to
Rs 400000
Rs 100000
above
Total
A] ANNIGERI
1] Basapur 05 09 06 20
2] Bhadrapur - 10 10 20
3] Hallikeri 04 07 09 20
4] Navlavadi - 08 12 20
5] Saidapur 03 07 10 20
TOTAL 12 41 47 100
B] MORAB
1] Yamanur - 10 10 20
2] Tirlapur 08 07 05 20
3] Shanwad 06 06 08 20
4] Shirakal - 09 11 20
5] Halkusugal 07 07 06 20
TOTAL 21 39 40 100
Source: Field Survey
Value of Agricultural Implements:
The value of agricultural implements of farmers was mentioned at
Rs.40000 or less by a maximum number of 18 respondent farmers each in
Annigeri and Morab province in Navalgund taluk. However maximum number
of 49 and 42 farmers each in Annigeri and Morab province in Navalgund taluk
has estimated the value of implements at Rs.40000 – Rs.60000 and 33 and 40
farmers estimated the value at Rs.60000 and above. The following table
provides the details.
91
Value of Tractor:
The current value of tractor owned by the respondent farmers was
Rs.1.50 lakh to Rs.2.50 lakhs as attested by 1 farmer each in Byadagi and
Navalgund talukas. However the current value was mentioned at R. 2.50 lakh
and above by a maximum of 12farmers in Haveri and minimum 2 farmers in
Byadagi. The following table provides the details.
Table No. : - 4.11
Value of Agricultural Implements
Province Rs 40000
below
Rs 40000 to
Rs 60000
Rs 60000
above
Total
A] ANNIGERI
1] Basapur - 10 10 20
2] Bhadrapur 05 08 07 20
3] Hallikeri 06 09 05 20
4] Navlavadi - 15 05 20
5] Saidapur 07 07 06 20
TOTAL 18 49 33 100
B] MORAB
1] Yamanur 03 07 10 20
2] Tirlapur 05 10 05 20
3] Shanwad 04 08 08 20
4] Shirakal 06 07 07 20
5] Halkusugal - 10 10 20
TOTAL 18 42 40 100
Source: Field Survey
Loans for other Purposes:
The respondents have obtained loan for their other production purposes.
The details are provided here.
92
A total number of 107 farmers obtained loans in the range of Rs.50000
and below of which 54 and 53 farmers in Annigeri and Morab province in
Navalgund taluk. In the next higher range of loans of Rs.50000 – Rs.100000
was obtained by 46 and 47 farmer of Annigeri and Morab province in
Navalgund taluk. The farmers obtained their loan at interest rate varying from a
minimum of 6% to a maximum of 14%. The same banking institutions such as
PLD Banks, Commercial Banks and Co-op[erative have financed the
respondent farmers in ten villages of the Annigeri and Morab province of
Navalgund taluk.The following table provides the details.
Table No. : - 4.12
Loans obtained for production purpose by Farmers
Province Rs 50000
below
Pc Rs 50000 to
Rs 100000
Pc Source R o I Total
A] ANNIGERI
1] Basapur 18 33.33 02 04.34 PLD Bank 14% 20
2] Bhadrapur 15 25.75 05 10.86 Co-op Bank 6 % 20
3] Hallikeri 10 18.52 10 21.73 Commercial
Bank
8 % 20
4] Navlavadi 05 09.25 15 32.60 “ “ 20
5] Saidapur 06 11.12 14 30.43 “ “ 20
TOTAL 54 100 46 100 100
B] MORAB
1] Yamanur 15 22.30 05 10.63 “ “ 20
2] Tirlapur 10 18.86 10 21.27 “ “ 20
3] Shanwad 09 16.98 11 23.42 “ “ 20
4] Shirakal 10 18.86 10 21.27 “ “ 20
5] Halkusugal 09 16.98 11 23.41 “ “ 20
TOTAL 53 100 47 100 100
Source: Field Survey
93
Working Capital and the Sources:
The respondent farmers have raised their working capital funds from
three main sources viz. own funds, banks and others. The details are given here.
Own funds of the chilly growing farmers have constituted a major source
of working capital. A total of 116 respondent farmers have used their own funds
to a tune of 40% or less of the total of which 74 and 42 were from Annigeri and
Morab province in Navalgund taluk. Further 84 farmers used their own funds as
working capital to a tune of 60% of the total of which 26 and 58 were from
Annigeri and Morab province in Navalgund taluk.
The data collected from the field survey reveal that, 89 farmers obtained
working capital from banks to a tune of 40% or less of which 40 and 49 farmers
are from Annigeri and Morab province in Navalgund taluk. However, 60 and 51
farmers obtained a working capital from banks to a tune of 60% of their total
requirement. The following table provides the details.
Table No. : - 4.13
Working capital- Source & Extent of Amt.used
Province Own Funds Total Banks Total
40%
Below
60% 80%
Above
40%
Below
60% 80%
Above
A] ANNIGERI
1] Basapur 15 05 - 20 10 10 - 20
2] Bhadrapur 20 - - 20 15 05 - 20
3] Hallikeri 15 05 - 20 - 20 - 20
4] Navlavadi 14 06 - 20 05 15 - 20
5] Saidapur 10 10 - 20 10 10 - 20
TOTAL 74 26 - 100 40 60 - 100
94
B] MORAB
1] Yamanur 10 10 - 20 15 05 - 20
2] Tirlapur 05 15 - 20 10 10 - 20
3] Shanwad 08 12 - 20 05 15 - 20
4] Shirakal 10 10 - 20 10 10 - 20
5] Halkusugal 09 11 - 20 09 11 - 20
TOTAL 42 58 - 100 49 51 - 100
Source: Field Survey
Chilly Crop Farmers – Factors Influencing the Preference of
Farmers:
The chilly growing farmers covered by the study have shown preference
for the chilly crop due to some major reasons. The respondents have ranked 5
factors as first important factors that have influenced them in going for the
chilly crop and produce in preference to the other crops. Among the five “ Low
unit cost of production” is given as a first rank by maximum of 26 respondent
farmers followed by 24 farmers who ranked it as a first on the grounds of
“Low requirement of water”, 22 farmers for “Less amenable to pests and
diseases”, 21 farmers for “ good price” and 7 farmers prefering the chilly crop
on the grounds of “More demand in the market”. Second, third and other ranks
are gien by many respondent farmers in the study area.The following table
provides the details.
95
Table No. : - 4.14
Chilly Farmers – Factors influencing the Preference of Farmers
Ranks indicating Preference for Chilly crop by Farmers
S.n
o
Factors I II III IV V VI VII VIII IX X XI
1 Good unit price 21 15 16 30 13 02 02 01 - - -
2 Low unit cost of production 26 19 37 13 02 02 01 - - - -
3 Low water Requirement 24 41 23 07 04 01 - - - - -
4 Less amenable to Pests and diseases 22 18 14 36 10 - - - - - -
5 More demand in the market 07 03 04 13 61 02 - 01 - - -
6 Soil is more suitable for the oil seed and
cash crops
- 01 01 03 04 69 06 - - - -
7 Low requirement of manure - 02 - 01 - 06 85 06 - - -
8 Low Labour Requirement - - 01 - - - 07 91 01 - -
9 Crop duration is less 04 19 6
9
01
10 Produce is not Perishable 18 09 - -
11 Others 01 0
4
-
Source: Field Survey
Innovative Method of Chilly Production:
The chilly production like other agricultural products has been
experimented with better techniques of enhancing productivity. The farmers
have been using better seeds and techniques of farming with proper use of
manuring and watering. Hence, the respondent farmers were approached by the
researcher regarding the use of innovative methods of cultivation of chilly crop.
The maximum number of respondent farmers of 96 and 89 each in Annigeri and
Morab province of Navalgund taluk affirmed that they have been using
innovative methods of production of chilly. However a small number of 04 and
11 farmers each in Annigeri and Morab province of Navalgund taluk did not use
such modern techniques of production. The following table provides the details.
96
Table No. : - 4.15
Use of innovative methods of cultivation of Chilly crop
Province No. of Farmers Total
A] ANNIGERI Yes No
1] Basapur 19 01 20
2] Bhadrapur 20 - 20
3] Hallikeri 18 02 20
4] Navlavadi 20 - 20
5] Saidapur 19 01 20
TOTAL 96 04 100
B] MORAB
1] Yamanur 19 01 20
2] Tirlapur 17 03 20
3] Shanwad 18 02 20
4] Shirakal 18 02 20
5] Halkusugal 17 03 20
TOTAL 89 11 100
Source: Field Survey
Availability of Adequate Quality Seeds:
It is encouraging to find that the entire 200 respondent in the 10 villages
of Annigeri and Morab province of Navalgund taluka confirmed that they could
get adequate and quality chilly crop seed for their production activities.
Obtaining of Expert’s Advice on Chilly crop Farming:
It is learnt from the respondent farmers in the study area that all of them
did obtain expert opinion about the farming of seed and chilly production. It
shows their awareness about the expertise available from Government and other
agencies in this direction.
97
Growing of Chilly crop on the Basis of Market Trends and Price
Movements:
The personal interviews with the respondents of cash crop growing
farmers indicated that they did take the decision of growing cash crop after
observing the market trends about the demand and price for the product.
However, in case of dry chilli all 200 farmers of 10 villages of Annigeri
and Morab province have mentioned that they did not follow the policy of
growing the chilly crop on the basis of market demand and the price level of
produce.The following table provides the details.
Table No. : - 4.16
Market Trends and price changes influenced the chilly produce
Province No. of Farmers Total
A] ANNIGERI Yes No
1] Basapur - 20 20
2] Bhadrapur - 20 20
3] Hallikeri - 20 20
4] Navlavadi - 20 20
5] Saidapur - 20 20
TOTAL - 100 100
B] MORAB
1] Yamanur - 20 20
2] Tirlapur - 20 20
3] Shanwad - 20 20
4] Shirakal - 20 20
5] Halkusugal - 20 20
TOTAL - 100 100
Source: Field Survey
98
Frequency of Growing Chilly crop:
All the selected farmers in the 10 of Annigeri and Morab province of
Navalgund taluka have affirmed that they have raised a single chilly crop in a
year.
Employment:
The data collected from the respondent farmers in 10 villages of Annigeri and
Morab province in Navalgund taluk have revealed that a total number of 598
male members of the families of the 200 farmers have been engaged in
production activities of the chilly farmers. Province wise figures indicate that
277 male and 321 male members of the farmers worked on the farms in 10
villages of Annigeri and Morab province in Navalgund taluk. There are 261 and
307 female workers are engaged in growing the chilly crop in 10 villages of the
Annigeri and Morab province in Navalgund taluk.
In addition to male and female members a total of 438 children were also
engaged in chilly farming operations in 10 villages of Annigeri and Morab
province of Navalgund taluk covered by the study.The following table provides
details.
Table No. : - 4.17
Family Members employed in chilly farming
Province Male members Female members Children Total
A] ANNIGERI
1] Basapur 30 33 45 108
2] Bhadrapur 63 64 38 165
3] Hallikeri 69 63 48 180
4] Navlavadi 52 44 34 130
5] Saidapur 63 57 49 169
TOTAL 277 261 214 752
99
B] MORAB
1] Yamanur 47 45 32 124
2] Tirlapur 65 61 38 164
3] Shanwad 66 65 46 177
4] Shirakal 71 67 51 189
5] Halkusugal 72 69 57 198
TOTAL 321 307 224 852
Source: Field Survey
Employment of Hired Workers:
The 200 respondent chilly growing farmers had employed 886 casual
labourers of which farmers in Navalgund taluk employed 434 and 452 each in
Annigeri and Morab province. The total number of regular hired workers was
499 of which 242 and 257 were employed in Annigeri and Navalgund province.
The total number of hired workers employed during the season was 1736
of which 928 were employed in Annigeri province and 808 in Morab province.
The following table provides the details.
Table No. : - 4.18
Employment of Hired workers Province Casual Labours No`s Regular Labours No’s During
Labours[Season] No’s
A] ANNIGERI 1] Basapur 71 38 140 2] Bhadrapur 86 46 171 3] Hallikeri 91 52 206 4] Navlavadi 102 60 210 5] Saidapur 84 46 201 TOTAL 434 242 928
B] MORAB 1] Yamanur 86 47 151
2] Tirlapur 78 55 145
3] Shanwad 96 60 160
4] Shirakal 95 47 177
5] Halkusugal 97 48 175
TOTAL 452 257 808
Source: Field Survey
100
Wage Rates for Hired Workers per day:
The wages varied between a minimum of Rs.70 per day to a maximum of
Rs.90 per day as mentioned by 148 respondent farmers in the ten villages of
Annigeri and Morab province of Navalgund taluka. However 52 farmers
mentioned that the wage rate per day for the hired workers was Rs.90 to Rs.100
per day in Annigeri and Morab province of the Navalgund taluka. The following
table provides the details.
Table No. : - 4.19
Wage rates for Hired Workers per day
Province Rs 70 to Rs 90 Rs 90 to Rs 100 Total Farmers
A] ANNIGERI
1] Basapur 15 05 20
2] Bhadrapur 14 06 20
3] Hallikeri 16 04 20
4] Navlavadi 13 07 20
5] Saidapur 17 03 20
TOTAL 75 25 100
B] MORAB
1] Yamanur 16 04 20
2] Tirlapur 17 03 20
3] Shanwad 13 07 20
4] Shirakal 15 05 20
5] Halkusugal 12 08 20
TOTAL 73 27 100
Source: Field Survey
********
101
CHAPTER – V
MARKETING DIMENSIONS OFCHILLY CROP IN
NAVALGUND TALUK
Marketing of farm products tends to be a complex process of marketing
of agricultural produce involves an elaborate and complex marketing
organization in view of the growth of distance between the farm producer and
the consumer as well as the small size and wide scatter of the producing units.
The problems in marketing of agricultural produce spring from their conditions
of production and nature of demand. The flow of farm produce from the farm to
the market requires some preparation and processing. The market system has to
provide the transport and storage facilities as well as finance and risk bearing.
Farm sector is characterized by great variations both in the output and quality of
the produce from year to year and between seasons. The farm products exhibit
more weight and volume in comparison to manufactured goods. These products are
generally perishable and cannot be stored for a considerable period of time. There
is always
a time lag before an adjustment of supply to demand. Prices of agricultural
produce are most unstable.
Some of the inadequacies associated with the marketing of farm produce
have been overcome in the post independence period. Important development in
this direction relate to the enactment of regulated markets, linking of credit to
marketing through cooperative marketing, grading standardization of weights
and measures, provision of weights and measures, provision of ware housing
facilities, regulation of forward contract, fixing of floor prices, market
intelligence and market news service and State Trading in food grains. These
and other measures and improvements have placed the farmer in a stronger
bargaining position and have ensured him a greater share in the consumers‟
rupee.
102
Marketable surplus of chilly crop is sold off by producers at the nearest
assembling market or sell to the local dealers at their own farmhouse. Dealers
may be village merchant‟s itinerant dealers and agents of wholesale merchants
and in some cases the agents of crushing concerns. The milling units play an
important role in the areas where there are no regulated markets. They collect
Chilly from the villages either through their own agents or through village
merchants to whom they give financial help to run their business. Village
merchants carry on money lending business by way of advancing small amounts
to the cultivators either in the form of cash or kind with the understanding that
the cultivator would dispose of the produce to them or through them only.
Producers of chilly crop decide to sell their produce at the village or take it to an
assembly market on the basis of some considerations. These considerations or
factors relate to the quantity of produce, the distance from the market, transport
facilities, market charges and prices at the village level and the immediate need
for cash etc.
The markets relating to chilly crop are classified into 3 groups viz;
primary markets secondary markets and terminal markets. Primary markets are
periodical markets also known as weekly bazaars. Mandis or grunj are
secondary markets that provide permanent place for daily transactions to take
place with some amenities for the benefits of the sellers and buyers. The
terminal markets are urban centres. They take stocks from producing centres as
well as from important markets.
The main thrust of the present chapter relates to an extensive and in-depth
study of the different dimensions of marketing of chilly crop in the study area
comprising of 10 villages in Annigeri and Morab province in Navalgund taluk.
The study covers all the important areas of chilly marketing with the help of the
empirical data collected from the selected 200 respondents in the 10villages in
Annigeri and Morab province in Navalgund taluka.
103
The important aspects covered for the analysis include the assembling of
the produce by the farmers after the harvesting is over and the cost and duration
of assembling etc. Next the storage and cost of storage and also the duration and
location of storage has been discussed with the necessary statistical data
obtained from the respondent farmers. The practices followed by the chilly
farmers about the packing and its costs have been analysed. The important area
of grading of the chilly produce and the cost involved etc has been analysed in
detail. Channel of distribution and the role of APMC etc. have been analysed
with the help of the data gathered from the responses of the selected farmers.
The role of transport and the transport facilities of the chilly farmers incurred by
them have been examined in detail. Market information, the sources and the
cost of market information of the farmers have been analysed. The data analysis
relating to marketing finance sources of finance etc has been made in this
chapter. Another important aspect of marketing of chilly analysed in this
chapter relates to marketing cost. Price behaviour of chilly over a period of five
years in the respective areas covered by the study has been analysed in detail in
the chapter.
The general problems of marketing of chilly by the respondent farmers
have been examined by taking into account the perceptions of the farmers
covered by the study.
The various aspects of marketing of chilly in the study area have been
analysed strictly on the basis of the views and responses of the selected 200
farmers engaged in the production and marketing of chilly in their respective
areas.
Assembling:
The first important step in the marketing of the chilly produce relate to
proper assembling it in suitable premises. The farmers have been following the
practice of assembling the chilly in specially designated storerooms or in their
residential places. The responses have been identical from all the 20
104
respondents each in all the ten villages in Annigeri and Morab province in
Navalgund taluk of the Dharwad district covered by the study. The following
table provides the details.
Table No. : - 5.1
Assembling of Chilly
Province No. of Farmer`s store
room
No. of farmer`s Residential
premises
A] ANNIGERI
1] Basapur - 20
2] Bhadrapur - 20
3] Hallikeri - 20
4] Navlavadi - 20
5] Saidapur - 20
TOTAL 00 100
B] MORAB
1] Yamanur - 20
2] Tirlapur - 20
3] Shanwad - 20
4] Shirakal - 20
5] Halkusugal - 20
TOTAL 00 100
Source: Field Survey
The details in the above table indicate uniformity in the practice of assembling
the chilly after the harvesting is over. This is first preparatory stage before
marketing the produce.
Cost of Assembling:
The responses of the 200 selected farmers in the ten villages as have
indicated that the cost of assembling chilli is Rs 10 to 15 per bag.
105
Duration of Keeping Assembled Chilly:
The 20 respondents each in the 10 villages in Annigeri and Morab
province of Navalgund taluka have indicated that the minimum and maximum
period of keeping their assembled chilli is one month and 6 months respectively.
Storage:
The next step in the process of marketing the chilly is moving the
assembled produce to marketing centres from the local villages and stores them
in suitable places in coordination with middle men. The storage options for the
chilly farmers are the Government warehouses, private warehouses and APMC
warehouses. The farmers have indicated more than one option since they could
not avail of only one of the options of storage due to inadequacy of space. The
following table provides the details.
Table No. : - 5.2
Storage of Chilly
Province Govt.warehouse Private
warehouse
APMC
warehouse
Total
A] ANNIGERI 1] Basapur - - 20 20
2] Bhadrapur 01 - 19 20
3] Hallikeri - - 20 20
4] Navlavadi 02 - 18 20
5] Saidapur - - 20 20
TOTAL 03 - 97 100
B] MORAB 1] Yamanur 02 - 18 20
2] Tirlapur - - 20 20
3] Shanwad - - 20 20
4] Shirakal - - 20 20
5] Halkusugal - - 20 20
TOTAL 02 - 98 100
Source: Field Survey
106
It is clear from the above table that all the respondent farmers used storage
facilities of APMC. The 3 respondents each in Annigeri province used
government warehouse facilities while 2 respondents each in Morab province
used private warehouse. Cost of Storage:
All 200 respondent farmers have affirmed the uniform storage which is
shown as below:
Chillies : Rs. 25 per bag per month
Adequacy of Storage Facility:
The respondents are divided in their opinion about the adequacy of
storage facilities for their chilly. The following table provides the details.
Table No. : - 5.3
Adequacy of storage facility
Province Store room
No. of farmers
Residential premises No.
of farmers
Total
A] ANNIGERI
1] Basapur 20 - 20
2] Bhadrapur - 20 20
3] Hallikeri 20 - 20
4] Navlavadi - 20 20
5] Saidapur 20 - 20
TOTAL 60 40 100
B] MORAB
1] Yamanur 15 05 20
2] Tirlapur 05 15 20
3] Shanwad 20 - 20
4] Shirakal 20 - 20
5] Halkusugal 20 - 20
TOTAL 80 20 100
Source: Field Survey
107
The details of responses in the above table indicate that all the 20 respondent
farmers each in Annigeri province Morab province have affirmed that the
storage facilitites.However the 20 respondents each in Bhadrapur and Nalavadi
of Annigeri province and 5 respondents of yamanur and 15 respondents of
Trilapur of Morab province of Navalgund taluk have mentioned that an
inadequate storage facilities in respect of chillies.
The Average Period of Storage:
All the 200 respondent formers of chilly crop of all 10 villages of
Annigeri and Morab province of Navalgund taluk have affirmed the average
period of keeping their produce in storage was 3 to 6 months.
Packing and packing cost of Dry Chilly:
The usual practice of packing the dry chillies is by using the gunny bags.
All the 200 respondent farmers have affirmed the use of gunny bags for packing
the produce before the same is sold in market.
The packing cost chillies is mentioned by all 200 respondent farmers of
10 villages of Annigeri and Morab province of Navalgund taluk is shown as
below:
Table No. : - 5.4
Packing and packaging cost of Dry chilly
Mode of packing Gunny Bags
Cost of package Material Rs.22 to Rs.25
Cost of packing Rs.10 to Rs.12
Source: Field Survey
Packing requirement for bulk agricultural commodities is less costly since they
do not need packing material of superior quality. Dry chilly is not a perishable
commodity. Hence the duration of keeping the produce in storage can be
extended if price consideration requires it.
108
Location of Sales:
The respondent farmers have exercised two options of locations for the
sale of chilly. Sales have been taking place locally as well as at APMC yards.
The local sales of dry chilly takes place due to prior commitment of the farmers
with the local merchants based on prior advances received by the farmers. Some
farmers sell locally due to transport or personal financial difficulties. Farmers
who are able to wait for a better price and whose stock of chilly is of large
volume take their produce to APMC yards. The responses of the 20 farmers
each selected in 2 provinces of Navalgund taluk have resorted to sell part of
their dry chillies locally and the rest at the APMC yards.
Reasons for Local sales of Dry chilly:
The respondent farmers in Annigeri and Morab province of Navalgund
taluk in Dharwad district have advanced more than one reason for the local
sales of their Dry chilly produce. The following table provides the details.
Table No. : - 5.5
Reasons for local sales of Dry chilly
Reasons Basapur Bhadrapur Hallikeri Nalavadi Saidapur Total
Need for immediate sale 20 20 20 20 20 100
To repay old debts to money lenders & merchants etc
20 20 20 20 20 100
To avoid transport cost to carry the produce to APMC
20 20 20 20 20 100
Quantity of produce is small 20 20 20 20 20 100
Storage Difficulties 20 20 20 20 20 100
Reasons Yamanur Tirlapur Shanwad Shirkal Halkusugal Total
Need for immediate sale 20 20 20 20 20 100
To repay old debts to money lenders & merchants etc
20 20 20 20 20 100
To avoid transport cost to carry the produce to APMC
20 20 20 20 20 100
Quantity of produce is small 20 20 20 20 20 100
Storage Difficulties 20 20 20 20 20 100
Source: Field Survey
109
It is evident from the details in the above table that all 20 respondents in
10 villages of Annigeri and Morab province of Navalgund taluk in Dharwad
district have indicated that the need for immediate cash compelled them to sell
locally their Dry chilly produce. Similarly repayment of old debt to merchants
and moneylenders also compelled all the 20 respondents each in 10 villages of
Annigeri and Morab province in Navalgund taluka to sell their produce locally.
The third reason that compelled them to sell locally was to avoid the transport
cost in carrying the produce to APMC. However all the 200 respondents in each
village of Annigeri and Morab province of Navalgund taluk have also
mentioned that the local sales of Dry chilly by them were due to the small
quantity and storage difficulties of the produce.
Preference for sales at APMC:
The responses obtained from the 200 farmers in the 10 villages of
Annigeri and Morab province in Navalgund taluk indicate that they preferred
sales at APMC yard for some specific reasons. The following table provides the
details.
Table No. : - 5.6
Preference for sales of Dry chilly at APMC
Reasons Basapur Bhadrapur Hallikeri Nalavadi Saidapur Total
APMC ensures better price 20 20 20 20 20 100
APMC provides storage facilities
20 20 20 20 20 100
APMC provides grading facilities
20 20 20 20 20 100
APMC provides proper weighing facilities
20 20 20 20 20 100
APMC provides better market information
20 20 20 20 20 100
APMC provides best arbitrary decisions in case of quarrels between farmers & buyers in respect of quality of produce
20 20 20 20 20 100
110
Reasons Yamanur Tirlapur Shanwad Shirkal Halkusugal Total
APMC ensures better price 20 20 20 20 20 100
APMC provides storage facilities
20 20 20 20 20 100
APMC provides grading facilities
20 20 20 20 20 100
APMC provides proper weighing facilities
20 20 20 20 20 100
APMC provides better market information
20 20 20 20 20 100
APMC provides best arbitrary decisions in case of quarrels between farmers & buyers in respect of quality of produce
Source: Field Survey
The details of responses of all the selected respondent farmers mentioned
in the above table indicate a consensus about the reasons for preference to sell
Dry chilly at APMC Yard. The only reason which has not been confirmed
relates to the APMC providing best arbitrary decisions. All the four facilities
relating to better price to the produce storage facilities grading facilities and
weighing have been considered useful and are responsible for preferring sales at
APMC Yards.
Channel of Distribution:
Channel of distribution refers to the course taken in the transfer of the
title to commodity. It is the route taken by the title to a product in its passage
from its first owner, the agricultural producer or a manufacturer as the case may
be to the last owner, the ultimate consumer or the business user. The major
participants in the distribution channel are; producers, intermediaries and
consumers. The intermediaries are the wholesalers, retailers and facilitators who
direct the products and service to the consumers.
The responses of the 200 farmers engaged in production and marketing of
dry chilly sell their produce through commission agents and cooperative
111
marketing societies. The responses indicate complete unanimity among all the
farmers selected for the study.
There is a different opinion about the satisfaction among the respondents
regarding the channel of distribution. The following table provides the details.
Table No. : - 5.7
Opinion about the channel of distribution
Province Yes No Total
A] ANNIGERI 60 40 100
B] MORAB 54 46 100
Total 114 86 200
Source: Field Survey
It is evident from the details in the above table that majority of 60 and 54
respondents are satisfied with the channel of distribution in their sales of dry
chilly. A substantial number of 40 and 46 respondents are not satisfied with the
channel of the distribution. All the 114 selected farmers each in Annigeri and
Morab province are satisfied with the channel while all the 86 respondent
farmers each in Annigeri and Morab province of Navalgund taluk are not
satisfied with the channel.
Selling the Dry Chilly in More than One Market:
The responses of the 200 dry chilly farmers indicate that they are all
selling their produce in more than one market. The markets where they sell their
dry chilly include local market and APMC.
All the 100 farmers in Annigeri province sell their dry chilly in local
market to a tune of 50% to 60%. The same position of the 100 farmers each in
Morab province is indicated through their responses.
112
Grading of the Product:
Grading is the division of products into classes made up of units
possessing similar characteristics of size and quality. It is sorting of individual
specimens of a product to predetermined standard grades or classes to which
they belong. Generally agricultural or horticultural product or natural products
like iron ore etc which do not have uniformity in quality are to be graded. Here
the principle of standardization is applied in terms of grade.
Grading has a functional role to play. It provides ethical basis for
marketing of goods. Graded goods attract better market and better price.
The responses of the 200 respondent farmers indicate that the Grading is
generally done by the growing farmers themselves with the help of expert
labuor. All the 200 respondents in each 10 villages of Annigeri and Morab
province have asserted that the vgarding of their dry chilly produce is beneficial
for them. The annual cost of grading of chilli Rs. 400 and above Rs 400 per
quintal. The following table provides the details.
Table No. : - 5.8
Cost of grading Dry chilly [No. of Farmers]
Province Cost per quntal
Rs.400 Rs.400 above total
A] ANNIGERI 85 15 100
B] MORAB 95 05 100
Total 180 20 200
Source: Field Survey
It is evident from the details in the above table that all the 180 respondent
farmers mentioned the cost of grading of at Rs.400 per quintal. Similar was the
response of all the 85 and 95 respondents of Annigeri and Morab province.
Further all the 20 respondents each Annigeri and Morab province mentioned the
113
cost of grading is Rs. 400 and above. Similar was the responses of all the 15 and
5 respondents of Annigeri and Morab province.
Insurance of Dry Chilly:
The respondent farmers (200) have asserted that they did not insure their
produce before it was sold. Hence they did not incur any cost in insurance. The
respondents suggested that the cost of insurance was high and hence they did
not go in for insuring the Dry chilly.
Transport for Dry Chilly Marketing:
The respondent farmers have been using trucks, and carts for transporting
their dry chilly produce. The farmers are using both own vehicles and hired
ones. It is found that a large majority of 175 farmers have used hired vehicles
while only 25 farmers have used their own vehicles for transporting of their dry
chilly produce in Annigeri and Morab province. The following table provides
the details.
Table No. : - 5.9
Own and hired vehicles for transport of chilly
Province Own vehicles Hired vehicles Total
A] ANNIGERI 05 95 100
B] MORAB 20 80 100
Total 25 175 200
Source: Field Survey
It is clear from the details in the above table that all the 95 and 80
respondent farmers in Annigeri and Morab province depended on hired vehicals
for their transport requirements. However small number 5 and 20 farmers in
Annigeri and Morab preovince had their own vehicles for their transport
requirements.
114
Annual cost of Transport:
Generally the major factors affecting the cost of transportation relates to
the following
1 Distance
2 Quality of product
3 mode of Transport
4. Road Condition.
5. Nature of product
6. Risk associated with transportation work
The transportation cost is generally borne by the growing farmers. The
annual cost of transport of dry chilly is provided in the following table.
Table No. : - 5.10
Annual cost of transport of Dry chilly
Crop Cost of transport
Dry chilly Rs.25 per bag
Note: 1] The above rate is for 1 km to 40 kms per bag.
2] Over and above 40 kms, 25% more than the normal rates are charged.
Source: Field Survey
Market Information:
Marketing information refers to any information about the market and the
products traded in the market. The information pertains to demand and supply
conditions of the product, price conditions, transport and warehousing
conditions, channel of distribution, competition and facilities of infrastructure
like banking insurance, grading etc.
Marketing information helps in making key marketing decisions. It is
useful in planning the product, introducing new produce and Selection of
distribution channel. It is useful in increasing sales, diversifying sales and
capturing new markets.
115
The sources of market information are reports of traveling salesmen,
market intermediaries like wholesalers and retailers, records of business etc.
Sources of Market Information for Dry Chilly Farmers:
Information obtained through personal interview with the farmers
revealed that the main sources of market information were commission agents,
APMC, Newspapers and Radio and TV. The following table provides the
details.
Table No. : - 5.11
Sources of market information [no. of farmers]
Reasons Basapur Bhadrapur Hallikeri Nalavadi Saidapur Total
Whole sale merchants - - - - - -
Commission Agents 20 20 20 20 20 100
APMC 20 20 20 20 20 100
News papers 20 20 20 20 20 100
Radio-TV 20 20 20 20 20 100
Friends & Relatives - - - - - -
Reasons Yamanur Tirlapur Shanwad Shirkal Halkusugal Total
Whole sale merchants - - - - - -
Commission Agents 20 20 20 20 20 100
APMC 20 20 20 20 20 100
News papers 20 20 20 20 20 100
Radio-TV - - - - - -
Friends & Relatives
Source: Field Survey
The details in the above table indicate uniform responses from all the 20
respondent farmers each in the 10 villages of Annigeri and Morab province of
Navalgund taluk in Dharwad district.
116
A significant revelation from the discussion with the respondent farmers
is that none of them incurred any expenditure in obtaining the market
information from the above-mentioned sources. However a very interesting fact
that has emerged from the discussion with the respondents was that they did not
get any benefit from the market information what they obtained from those
sources.
Marketing Finance:
The farmers required finance for different marketing operations like
storage; grading transport packing etc. the responses of the 200 respondents in
the study area indicate that they did require finances for the marketing of their
dry chilly. There has been complete unanimity among all the 200 respondents
on this aspect. They have mentioned the four areas of marketing for which they
needed finance viz. storage, grading, transport and packing.
The respondent farmers have indicated that they have relied on their own
funds and bank loans for their marketing expenditures. There is again a
complete unanimity of opinion among all the 200 respondent farmers.
The requirements of finance and the percentage of funds used for the
marketing operations are indicated in the following table.
Table No. : - 5.12
Marketing Finance – use of the Sources
Province Own Funds[%] Bank loans[%]
20-40 40-80 80 Above 20-40 40-80 80 Above
A] ANNIGERI 45 05 - - 50 -
B] MORAB 45 10 - - 45 -
Total 90 15 - - 95 -
Source: Field Survey
The details in the above table reveal that maximum of 90 respondents
used 20-40% of their own funds for meeting the financial needs in their
117
marketing of dry chilly while 15 of them relied on a higher amount of 40-80%
of their own funds for the marketing purposes. However maximum of 95
respondents used 40-50% of the bank loans to meet their financial needs for
marketing their produce.
Marketing Cost:
Information collected from the respondent farmers growing dry chilly
indicate that the major areas of marketing cost relate to packing, storage,
transport, grading and weighing. The details are given in the following table.
Table No. : - 5.13
Marketing cost of Dry chilly per bag
Province Packing Storage Transport Grading
A] ANNIGERI Rs.10 to
Rs.11
Rs.10 Rs.10
above
Rs.25 Rs.25
above
Rs.50
1] Basapur 20 - 20 - 20 20
2] Bhadrapur 20 20 - 20 - 20
3] Hallikeri 20 - 20 - 20 20
4] Navlavadi 20 - 20 20 - 20
5] Saidapur 20 20 - 20 - 20
TOTAL 100 40 60 60 40 100
B] MORAB
1] Yamanur 20 - 20 - 20 20
2] Tirlapur 20 20 - 20 - 20
3] Shanwad 20 - 20 - 20 20
4] Shirakal 20 - 20 20 - 20
5] Halkusugal 20 20 - 20 - 20
TOTAL 100 40 60 60 40 100
Source: Field Survey
118
Packing cost have been indicated at Rs. 10 to Rs. 11 per bag by all the 20
rspondents each in the 10 villages of Annigeri and Morab province of
Navalgund taluk of Dharwad district. There is complete unanimity on this
among all the 200 respondents.
Maximum number of 80 respondents has incurred Rs. 20 or below per bag
of dry chilly. This has been asserted by 20 farmers each in Bhadrapur, Saidapur,
Tirlapur and Halkusgal in Navalgund taluk.
Maximum numbers of 60 farmers have indicated that transport cost was
Rs. 25 of which 20 farmers each belonged to Bhadrapur, Nalavadi, Saidapur,
Tirlapur, Shirkol and Halkusgal. However respondent farmers have asserted that
the transport cost was Rs. 25 and above of which 20 farmers each belonged to
Basapur, Hallikeri, Yamnur and Shanwad.
All the 20 farmers in each of the 2 provinces have asserted that the grading
cost was Rs. 50 per bag.
Pricing of Dry Chilly:
Price is the value of product attributes expressed in monetary terms which
a buyer pays or is expected to pay in exchange and anticipation of the expected
or offered utility. Price helps in establishing a mutually advantageous economic
relationship and facilitates the transfer of ownership of goods and services from
the company to buyers.
Pricing is a marketing function and it is the most important variable next
only to product which affects the success or failure of business.
In the Indian context pricing policies are incorporated in the overall
government policies spectrum. The major objectives which guide the
government in this direction are,
i. Protection of consumer interests from price rise.
ii. Ensuring fair return on investment by industries
iii. Protection of producers of agricultural products against vicissitudes of
prices
iv. Protection of trade restrictive and anti competitive pricing.
119
The above objectives are achieved by a system of price regulation.
Pricing of Dry Chilly in the study area:
The dry chilly producing farmers are faced with market conditions more
closely to monopolistic competition. Numerous sellers of the dry chilly are
faced with a comparatively smaller number of buyers who may be wholesalers,
retailers or mill units. The prevalent market conditions determine the dry chilly
prices. The role of a few merchants influences the price of dry chilly. The
market supply and demand no doubt influence the price of dry chilly. However
some imperfections in the dry chilly market influence the prices greatly. As
mentioned earlier the local merchants and money lenders who advance cash to
small farmers and exploit them through quoting unremunerative prices. The dry
chilly seller like other farmers is forced to become a price taker rather than a
price maker. The influence of APMCs is still not fully felt in villages because of
the local sales taking place due to financial limitations of dry chilly growers.
Responses of the 200 dry chilly growers covered by the study clearly
indicate that they are not satisfied with the present system of price fixing for
their produce as shown below.
Table No. : - 5.14
Reasons for Dis-satisfaction of present pricing system
Reasons Basapur Bhadrapur Hallikeri Nalavadi Saidapur Total
Price is not commensurate
with the cost of production.
20 20 20 20 20 100
Price is arbitrary 20 20 20 20 20 100
Price indicates the
exploitation of Middle men
20 20 20 20 20 100
Price not influenced by Govt.
price support policy
- - - - - -
120
Reasons Yamanur Tirlapur Shanwad Shirkal Halkusugal Total
Price is not commensurate
with the cost of production.
20 20 20 20 20 100
Price is arbitrary 20 20 20 20 20 100
Price indicates the
exploitation of Middle men
20 20 20 20 20 100
Price not influenced by Govt.
price support policy
- - - - - -
Source: Field Survey
All the 20 respondent farmers in each 10 villages in Annigeri and Morab
province in Navalgund taluk of Dharwad district have affirmed that the price
they obtained from the buyers of dry chilly is arbitrary but the price is not
commensurate with the cost of production. Similarly all the 20 respondent
farmers in each of the 10 in Annigeri and Morab province in Navalgund taluka
of Dharwad district have asserted that the price indicates the exploitation by the
middlemen.
The respondent farmers have indicated some suggestions for ensuring a
reasonable price for their dry chilly sales. The following table provides the
details.
Table No. : - 5.15
Suggestions for better price for Dry chilly [No. of farmers]
Reasons Basapur Bhadrapur Hallikeri Nalavadi Saidapur Total
Organizing the Co-operative marketing societies for sale of produce
20 20 20 20 20 100
More active role for APMC in getting better price
20 20 20 20 20 100
Selling directly to oil mills and avoid middle men
- - - 20 - 20
121
Reasons Yamanur Tirlapur Shanwad Shirkal Halkusugal Total
Organizing the Co-operative marketing societies for sale of produce
20 20 20 20 20 100
More active role for APMC in getting better price
20 20 20 20 20 100
Selling directly to oil mills and avoid middle men
- 20 - - - 20
Source: Field Survey
The details in the above table indicate that all the 20 respondent dry chilly
farmers have favoured organisation of cooperative marketing societies for sales
of dry chilly. Similarly all of them have urged that the APMC should play more
active role in getting better price for dry chilly. The 20 respondent farmers in
Nalavadi and Bhadrapur have suggested for a direct sales of dry chillies to oil
mills, so that the share of middlemen could be avoided and they can get a better
price.
Price Trends of Dry Chilly during 2005-06 to 2009-10:
The dry chilly prices in the study area have prevailed at a steady range of
Rs.4000 to Rs.7000 and above per quintal. This has been affirmed by all the 200
respondent farmers in the Navalgund and Konnur provinces in Navalgund taluk
of Dharwad district.The following table provides the details.
Table No. : - 5.16
Price of Dry chilly 2005-06 to 2009-10 [No. farmers]
Province 2005-06 2006-07 2007-08 2008-09 2009-10
A] ANNIGERI
Rs.4000-Rs.7000 35 55 70 75 50 Rs.7000-Rs.10000 65 45 30 20 35 Rs.10000 & above - - - 05 15
B] MORAB Rs.4000-Rs.7000 40 65 75 80 45 Rs.7000-Rs.10000 60 35 25 17 54 Rs.10000 & above - - - 03 01 Total 200 200 200 200 200
Source: Field Survey
122
The details in the above table indicate identical responses of the 200
respondent farmers in the 10 villages in Annigeri and Morab provinces in
Navalgund taluk of Dharwad district. However 20 respondent farmers in 10
villages of Annigeri province and 4 farmers in 10 villages of Morab province
have indicated a price of Rs.10,000 and above per quintal
Major Marketing Problems of Dry Chilly:
Major marketing problems of dry chilly in the study area have been
ascertained and identified through personal discussions with the 200 respondent
farmers covered by the study. The responses have been summarized here.
1. Inadequate storage and High cost of Storage.
This problem of dry chilly marketing has been ranked as problem No. 1 by 65
respondent farmers. A maximum of 70 farmers have ranked this problem at
No.III while 14 farmers have ranked it as problem no. II. Few other respondent
have ranked as problem no. IV (17), problem No. VII (6), problem No.VIII
((26), No. IX (02).
2. High cost of Packing Material
This problem is considered as problem No. I by 28 respondent farmers and as
problem No. II by 79 farmers, problem No. III (29), problem No.V (06),
Proplem No. VI (30) Problem No.VII (05) Problem No.VIII (15) and Problem
No. IX (08).
3. Cost of grading is high
High cost of grading is problem No. I, according to 1farmer No. II (9), No. III
(11), No. IV (18), No. V (8), No. VI (19), No. VII (25).
4. Charges of commission agents is High
This marketing problem has been considered as problem No. I by 18 respondent
farmers, No. II by 14 farmers, No. III by 20 farmers, No. IV 109 farmers, No.
V by 28 farmers, No. VI by 6 farmer and No. IX by 5 farmer.
123
5. Transport Cost is High
Five respondent farmer has considered this as problem No. I and 6 farmers
have found it as problem No. VII.
6. Insurance cost is high
This is considered as problem No. I by 8 farmers, No.II (12), No. III (18), No.
IV (08), No. V (15), No. VI (99), No. VII (35) and No. VIII (05).
7. Inadequate Market Information
This problem has been mentioned by all 200 respondent farmers of which, 40
have ranked it as problem No. I, 20 as problem No. II, 28 as problem No. III, 35
as problem No.IV, and a maximum of 42 farmers have ranked it as problem
No.VII, and a minimum of 10 farmers as problem No. V and VIII.
8. Weighment of Dry Chilly is Faulty
This is consider as an important marketing problem by 200 respondent farmers
of which, 8 farmers considered it as problem No. I, 15 as problem No. II, 12
farmers found it as problem No. III and so on.
9. More samples of the Farmers’ Produce are taken by the Merchants
This results in loss of earnings of the farmers. Hence all the 200 farmers have
considered it as a marketing problem of which, ten have ranked it as problem
No. I, 20 as problem No. III,15 as problem No. IV and a maximum of 80
farmers have ranked it as problem No. VIII.
10 Pricing is Faulty and Cost of Production is not considered by Buyers
This marketing problem has been considered as problem No. VIII by 15
farmer‟s and problem No. X by 45 farmers.
The adjoining table provides the details of the responses of the farmers
about the marketing problems and the ranks of problem given by the respondent
farmer‟s are shown in the following table.
124
Table No. : - 5.17
Marketing problems [No. of farmers]
S.no Factors I II III IV V VI VII VIII IX X Total
1 Inadequate storage and high
cost of storage
65 14 70 17 - - 06 26 0
2
- 200
2 High cost of packing material 28 79 29 - 06 30 05 15 0
8
-
3 Cost of grading is high 01 09 11 18 08 19 25 - - - 91
4 Charges of Commission Agents
is high
18 14 20 109 28 06 - - 0
5
-
5 Transport cost is high 05 - - - - - 06 - - - 11
6 Insurance cost is high 08 12 18 08 15 99 35 05 - - 200
7 Inadequate market information 40 20 28 35 10 15 42 10 - - 200
8 Weighing at chilly is Faulty 08 15 12 25 90 30 - 20 - - 200
9 More samples are taken by
merchants
10 - 20 15 20 - 80 4
5
- 200
10 Pricing is faulty and cost of
production is not considered by
the buyers
20 15 - 45 60
Total 183 163 208 227 177 219 119 171 6
0
45
Source: Field Survey
********
125
Chapter – VI
Summary of Findings, Conclusions and Suggestions
The present study is a micro analysis of the production and marketing of
oilseeds with special reference to Chilly crop in two province of Navalgund
taluka of Dharwad district. The analysis has covered 200 Chilly crop growing
farmers in the Ten Villagesof two province of Navalgund taluka. The
respondent 20 farmers each in the two provinces of Navalgund taluka were
interviewed with a well structured interview schedule covering different aspects
of production and marketing dimensions. The findings based on the responses
of the farmers have thrown light on the economic management of the farms
growing chilly crop and the marketing issues involved in their sales
organization. The social background of the farmers has a bearing on their
economic strength and weaknesses. Hence details obtained from them on their
social aspects like family size, caste and religious affiliations, sex and age
composition etc have been analysed in detail. There is a predominance of Hindu
religious group among the respondent farmers which is in tune with the
demographic characteristics of the region. Family members working on the farm
has been a striking feature since it has impact on the limited use of hired
workers in the farm operations. Educational status of the respondents has its
impact on the efficiency in the management of production and marketing of the
produce.
On production front the information on size of holdings, nature of land in
terms of soil, irrigation etc have been analysed to provide a background to the
production efficiency, productivity of land etc. Data collected on the output and
yield per hectare have been useful in ascertaining their impact on the income
earnings of the respondents‟ families. Cost constituents of production in terms
of labour, inputs and overheads have been ascertained and their magnitude in
126
relation to per acre output have been analysed in detail. Comparisons have been
provided about these different constituents in the production. The related
aspects of employment of labour have been analysed.
On the marketing dimensions of chilly crop different aspects like
assembling, packing, storage, grading, transport, channel of distribution,
marketing cost finance, pricing and price trends during the five years have been
analysed in detail and the major marketing problems of the chilly crop growing
farmers have been analysed on the basis of the perceptions of the respondent
farmers. The major findings and conclusions along with the necessary
suggestions have been provided here.
Findings and Conclusions:
The foregoing analysis has led to the emergence of the following major
observations.
DRY CHILLI
The chilli crop is grown from almost the sea-level up to an altitude of 1,500
metres in tropical and subtropical regions, with an annual rainfall of 60-150
cm. In India, chillies are now grown in almost all parts. At present, Andhra
Pradesh, Karnataka, Maharashtra, Orissa, Rajasthan, Tamil Nadu and West
Bengal account for 85.8 per cent of the total area and 89.3 per cent of the
total output of chillies in the country.
The chill crop does well in the tropical and the sub tropical regions with
annual rainfall of 60-150 cms. Very high rainfall during its growth is
harmful.
Normally the sowing is done in Sept-Oct and plucking in January. The
chilly plant lasts for one season only. It is plucked 3 to 4 times in the
season.
The rain-fed crop does well on deep, fertile, well-drained black cotton
soils. Under irrigation and good manuring, excellent crops can be raised in
127
sandy and light alluvial loams as well as in red loamy soils.]
The world production of chilli crop sums up to around 7 million tons that is
cultivated on approximately 1.5 million hectares of land. India is the world
leader in context of chilli production followed by China and Pakistan.
The largest producer of chillies in the world is India accounting for 11 lakh
tons of production annually followed by China with a production of around
4 lakh tons, Mexico with the production of around 3 lakh tons and Pakistan
also producing 3 lakh tons of chilli every year. India also leads in the
context of maximum area covered in the cultivation of chillies.
India is also the largest consumer and exporter of this crop. It consumes
around 6.2 million tons of chillies i.e. about 90% of the total produce of the
country
The major importers of chillies from India are United States of America
Sri Lanka Bangladesh Nepal Mexico Canada United Kingdom Saudi
Arabia Singapore Malaysia Germany
There is fluctuating trends of area for dry chilli in India. It is varied from
8.36 lakh hectare in 2000-01 to 6.54 lakh hectare in 2005-06. The
minimum dry chilli area 6.54 lakh hectare in 2005-06 and a maximum area
is 8.80 lakh hectares in 2001-02.
The production of dry chilli in India registered a minimum of 8.67 lakh
tonnes in 2002-03 and a maximum of 12.36 lakh tones in 2003-04.
Fluctuating trends can also be seen in yield per hectare per kg of dry
chillies in India. It is varied from 1176 kgs in 2000-01 to 1551 kgs in 2005-
06. The yield per hectare per kg of chilli registered a minimum of 1176 kgs
in 2000-01 and a maximum of 1607 kgs in 2004-05.
The area of dry chilli in Karnataka is varied from 1.93 lakh hectare in
2001-02 to 1.14 lakh hectare in 2010-11. The minimum dry chilli area 0.70
lakh hectare in 2003-04 and a maximum area 1.93 lakh hectare in 2001-02.
128
The production of dry chilli in Karnataka is varied from 1.26 lakh tonnes in
2001-02 to 1.23 lakh tonnes in 2010-11. The production of dry chilli
registered a minimum of 0.95 lakh tonnes in 2003-04 and a maximum of
1.53 lakh tones in 2002-03.
Fluctuating trends can be seen in yield per hectare per kg of dry chillies in
Karnataka. The yield per hectare per kg of chilli registered a minimum of
655 kgs in 2001-02 and a maximum of 1352 kgs in 2003-04.
The area of dry chilly in Dharwad district is varied from 65992 hecters in
2001-02 to 41230 hecter in 2010-11. The minimum dry chilly area is 21725
hecters in 2003-04 and the maximum area is 65992 hecters in 2001-02.
The production of dry chilly in Dharwad district is varied from 30865
tonnes in 2001-02 to 18205 tonnes in 2010-11. The minimum production
of dry chilly is 23567 tonnes in 2005-06 and the maximum production is
51598 tonnes in 2002-03.
Fluctuating trends can be seen in yield per hectare per kg of dry chillies in
Dharwad district. The yield per hectare per kg of chilli registered a
minimum of 465 kgs in 2010-11 and a maximum of 1275 kgs in 2003-04.
The area of dry chilly in Navalgund varied from 11339 hecters in 2004-05
to 12520 hecters in 2010-11. The minimum dry chilly area 8520 hecters in
2005-06 and maximum of 19383 hecters in 2009-10.
The production of dry chilly in Navalgun taluk varied from 5840 tonnes in
2004-05 to 58218 tonnes in 2010-11. The minimum production of dry
chilly registered is 4984 tonnes in 2005-06 and maximum of 58218 tonnes
in 2010-11.
Fluctating trends can be seen in yield per hecter per kg of dry chilly in
Navalgund taluk. The yield per hecter per kg of chilly registered
aminimum of 465 kgs in 2010-11 and maximum of 857kgs in 2008-09.
A total number of 200 farmers have been covered here for an intensive
129
study of their production and marketing operations. The profile covers
information on the demographic characteristics like a sample of 20 chilly
crops growing farmers have been selected from each of the ten villages in
the provinces and weightage is given to large and small farmers among
these selected 200 farmers.
The sample size of 200 respondent farmers consists of 120 large farmers
and 80 small farmers from the ten villages of the provinces of the
Navalgund taluk.
Small farmers are relatively less in the five villages of two hoblies in
Navalgund taluk in same order. However small farmers are more in
Basapur, Bhadra pur, Yamnur and Tirlapur villages respectively.
Maximum number of 100 respondent farmers belonged to the advanced
age group of 40 to 50 years followed by 36 farmers in the age group of 50
years and above and a minimum of 04 respondent farmers belonged to the
age group of 30 to 40 years.
Economically active population of farmers covered by the study is
maximum. Farmers in the advanced age of 50 years and above is also
substantial.
The information obtained from the selected 200 respondents indicated that
all of them were male farmers engaged in the production and marketing of
chilly in ten villages of Annigeri and Morab provinces of Navalgund taluk
of Dharwad district. This trend is obviously in conformity with the
traditional pattern of male oriented occupation of agriculture in the country.
It is significant to note that maximum number of 78 farmers had only
secondary education followed by 71 and farmers with primary education.
However 14 farmers had other type of educational background (i.e.. higher
& others).
The maximum number of 10 respondent farmers in Nalavidi village had
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primary education followed by 09 farmers in Halkusgal and 08 farmers
each in Basapur, Saidapur and Shirkol of two Hoblies in Navalgund
Taluka. Hallikeri with 11 farmers had maximum number of respondents
with secondary education folled by Basapur, Tirlapur. Shanwad villages
with nine farmers each in two Hoblies of Navalgund taluk.
The maximum number of 05 respondent farmers each in Yamnur and
Shanwad villages had higher education followed by 04 farmers each in
Bhadrapur, Nalavadi and Tirlapur of two Hoblies in Navalgund taluk.
Basapur, Nalavadi, Yamnur and Shirkol villages had two farmers each
with other education Qualification followed by remaining five villages 01
farmers each in the two hoblies of the Navalgund taluk.
The majority of respondent farmers had primary and secondary education
which naturally had good impact on their educational efficiency.
It is found that none of the 200 selected respondent farmers were illitrate
which is an encouraging factor.
The total number of male members of the 552 farmers are in 10 villages of
Annigeri and Morab provinces of Navalgund taluk of Dharwad district.
While the total number of female members was 496. The total number of
children of the 404 are selected from the farmers of the ten villages of
Annigeri and Morab provinces of Navalgund talukas.
Caste wise distribution of the 200 selected farmers indicate that maximum
number of 155 respondents belonged to castes which are included in
General Merit Categories as per Government rules followed by 20 farmers
belonging to scheduled castes, 11 farmers belonging to scheduled Tribes
and 14 farmers belonging to the other categories.
The occupation of all the 200 selected farmers was agriculture.
Maximum number of 156 farmers covered by the study had an annual
income of Rs.50000 or below it. A smaller number of 31 respondent
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farmers had an annual income of Rs.50000 to Rs.100000. A still smaller
number of 13 respondent farmers had an annual income of Rs.100000 and
above.
The respondent farmers owned residential buildings, vehicles, livestock
and lands etc. indicating their investments in such assets.
All the two respondent farmers owned their residential houses except four
farmers in Annigeri and Morab provinces who stayed in arented house.
All the respondent farmers owned three types of Live stock viz Bullocks,
cows and Buffaloes, maximum number of 338 Bullocks was owned by the
200 farmers covered by the study.The number of cows and Buffaloes
owned by them was 254 and 164 respectively.
The 100 respondent farmers in five villages of Annigeri provinces owned
65 carts, 50 tractors and 75 Twowheelers.
The 100 respondent farmers in Morab province have owned 75 cart, 65
tractors and 70 Twowheelers and others in the both provinces are 725 in
total.
The 200 respondent farmers in ten villages of Navalgund taluk of Dharwad
district cultivated a total of 4052 acres of land.
The 100 farmers in Annigeri province covered by the study had maximum
of land with black soil (1942 acres) followed by farmers in Morab province
with 2110 acres of black soil. No farmers in the province of the taluk was
covered by the Red soil.
All 200 respondent farmers have devoted a maximum area of their lands
for growing dry chilly compared to other crops. The remunerative price
and Higher income from the crop is the major factor for devoting
maximum area of their lands for growing this commercial crop.
The taluka has its main APMC in Annigeri located on an area of 25.03
acres has a jurisdiction over the Navalgund taluk. The Annigeri APMC has
four sub markets ie Navalgund, Morab, Shelavadi and Hebbal by covering
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149746 hecters of Cultivable area.
The total income of Annigeri APMC reached its maximum level of
Rs13989084.32 in 2010-11 but went down to a minimum level of
Rs10577027 in 2009-10. The highest savings were at Rs4795938 in 2010-
11.
The study covered a total number of 459 market intermediaries in the
Annigeri APMC of the Navalgund taluk in 2009-10 and it went upto 600 in
2011-12.
The educational status of the respondents indicates that 8 % intermediaries
covered by the study were Degree graduates. But no intermediaries were
belongs to primary education.
It is found through personal interview that zero respondent market
intermediaries belonged to scheduled tribes while majority of 09 market
intermediaries belonged to „general‟ categories and 01 respondents
belonged to other caste groups.
All the 10 respondent market intermediaries are working in the respondent
APMCs and further all of them are holding licences from their APMCs.
The respondent of the market intermediaries indicate that the competition
in their profession is normal and minimum.
A 65 % of the purchases are made by mills while seed companies and seed
merchants account for 15 percent and seed cost percentage is 20. All the 10
market intermediaries are unanimous in their opinion on this aspect.
The respondent market intermediaries have asserted that they arrange for
immediate sale and immediate payment to the chilly growing farmers.
The respondent market intermediaries are unanimous in their opinion that
the price of dry chilly is determined by the buyers, especially by oil mills.
The area under cash crop crop of the 200 farmers of the ten villages in two
provinces of Navalgund taluka of Dharwad district has remained almost
stable during the seven years from 2003-04 to 2009-10.
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The total area under Dry Chilli of 200 farmers varied from a minimum of
620 acres in 2006-057 to a maximum of 665 acres in 2009-10 in Annigeri
province of Navalgund taluk. However it varied fram a minimum of 721
acres in 2008-09 and a maximum of 755 acres 2003-04 in Morab province
of the Navalgund taluk.
The total output under Dry Chilli of 100 farmers in Annigeri province
varied from a minimum of 1620.24 Qtl in 2004-05 to a maximum of
2698.41 Qtl in 2008-09. However the output of Morab province varied
from a minimum of 1998 quintals in 2004-05to a maximum of 3136.35
quintals in 2008-09 in Navalgund taluk. It is noted that the output of chilly
crop in all two provinces has declined countinuously during the first three
years.
The yield per hecter of dry chilly in Annigeri province varied from a
minimum of 258 kg in 2004-05 and a maximum of 429 kg 2008-09.
However it is varied from a minimumof 270 kg in 2004-05 and a maximum
of 435 kg 2008-09 in Morab province of Navalgund taluk.
It is noted that the yied per hecter of dry chilly has been more in Morab
province as compared to Annigeri province in 2008-09[ie 435 kg per
hecter] in the Hoblies of the Navalgund taluk.
The cost of production relate to the tilling of the land, manuring, cleaning
of the cropped area, sowing, irrigation, crop cutting and harvesting. The
input costs relate to the cost of seeds, water and electricity used and
manure. Other costs related to production include vehicles maintenance,
rentals of harvesting machines and salary of regular workers.
The cost tilling ranges mentioned by the respondent farmers are Rs. 750 or
less, Rs.751 to Rs.1500 and Rs.1501 and above per acre.
Maximum number of respondent farmers in the ten villages of two
provinces of the Navalgund taluka has mentioned that the labour cost of
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sowing of chilly crops per acre varied between Rs.200 and Rs.400.
The labour cost of cleaning the standing crop of chilly per acre was Rs 300
and below is 02 and 01 each in Annigeri and Morab province Rs 300 to Rs
600 according to 44 and 50 farmers in Annigeri and Morab province.
However 54 and 49 farmers in Annigeri and Morab province is asserted
that the labour cost of cleaning in chilly crop per acre was Rs 600 and
above.
The labour cost of cutting the harvestable crop of chilly was estimated at
Rs 400 to 800 per acre by 09 and 12 respondent farmers in Annigeri and
Morab province. However 64 and 59 farmers in Annigeri Morab province
asserted that Rs 800 to 1500. Where as Rs 1500 and above was affirmed by
27 and 29 farmers in Annigeri and Morab province.
Non of 200 farmers have indicated the crop cutting cost of Rs 400 and
below.
The cost of seeds per acre of chilly crop was mentioned between Rs 252 to
Rs 325 by 58 and 66 farmers in Annigeri and Morab provinces. However
the highest level cost of Rs 325 toRs 400 was mentioned by 31 and 46
farmers in Annigeri and Morab province.
The highest cost of seeds of Rs 400 and above was mentioned by 11 and 08
farmers in Annigeri and Morab province.
The minimum current value of land owned by the farmers varied between
Rs 200000 to 300000 per acre as mentioned by 12 and 21 farmers in
Annigeri and Morab province and a maximum current value of land for Rs
400000 and above per acre is mentioned by 47 and 40 farmers in Annigeri
and Morab province of Navalgund Taluk.
The value of agricultural implements of farmers was mentioned at
Rs.40000 or less by a maximum number of 18 respondent farmers each in
Annigeri and Morab province. However a maximum number of 49 and 42
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farmers each in Annigeri and Morab province has estimated the value of
implements at Rs.40000 to Rs.60000, and 33 and 40 farmers estimated the
value at Rs.60000 and more
The respondent farmers have obtainerd a loans for their other productional
purposes at a varying rate of interest from 6% to 14% per annum.
The respondent farmers have obtained loans from banks for purchase of
tractors. Such banks include State Bank of India, Primary Land
Development Bank, Co-operative Banks and other commercial banks.
The respondent farmers have raised their working capital funds from three
main sources viz. own funds, banks and others.
It is revealed that 89 farmers obtained working capital from banks to tune
of 40% or less of which 40 and 49 farmers are from Annigeri and Morab
province in Navalgund taluk. However 60 and 51 farmers obtained a
working capital from banks to a tune of 60% of their total requirement.
The chilly crop production like other agricultural products has been
experimented with better techniques of enhancing productivity. The
farmers have been using better seeds and better techniques of farming with
proper use of manure and watering. Hence the respondent farmers were
approached by the researcher about the use of innovative methods of
cultivation of chilly crop.
It is encouraging to find that all the 200 respondent in the ten villages of
two province in Navalgund taluk confirmed that they could get adequate
and quality chilly crop seed for their production activities.
It is learnt from the respondent farmers in the study area that all of them
did obtain expert opinion about the farming of chilly crop production. It
shows their awareness about the expertise available from Government and
other agencies in this direction.
The personal interviews with the respondent chilly crop growing farmers
136
indicated that they did take the decision of growing chilly crop after
observing the market trends about the demand and price for the product.
But in case of dry chilly all 200 farmers of 10 villages in two province
mentioned that they did not follow the policy of growing the chilly crop on
the basis of market demand and price level of the produce.
All the selected farmers in the 10 villages of two province of Navalgund
taluk has affirmed that they raised a single crop of chilly in a year.
The data collected from the respondent farmers in the ten villages of
Annigeri and Morab province have revealed that a total number of 598
male members of the families of the 200 farmers have been engaged in the
production activities of the chilly crop farming. Province wise 277 and 321
male members of the farmers worked on the farms in the ten villages of
Annigeri and Morab provice in Navalgund taluk. 261 and 307 female
woprkers are engaged in growing the chilly crop in 10 villages of Annigeri
and Morab province in Navalgund taluk. In addition to this 438 children
were also engaged.
The 200 respondent chilly crop farmers had employed 886 casual
labourers. The total number of regular hired workers was 499.The total
number of hired workers employed during the season was 1736.
The wages varied between a minimum of Rs.70 per day to a maximum of
Rs.90 per day as mentioned by 148 respondent farmers in the ten villages
of Annigeri and Morab province in Navalgund taluka. However 52 farmers
mentioned that the wage rate per day for the hired workers was Rs.90 to
Rs.100 in Annigeri and Morab province of the Navalgund taluk.
The important aspects covered for the analysis include the assembling of
the produce by the farmers after the harvesting is over and the cost and
duration of assembling etc. Next the storage and cost of storage and also
the duration and location of storage has been discussed with the necessary
137
statistical data obtained from the respondent farmers.
The various aspects of marketing of chilly crop in the study area have been
analysed strictly on the basis of the views and responses of the selected 200
farmers engaged in the production and marketing of chilly crop in their
respective areas.
The responses have been identical from all the 20 respondents each in all
the ten villages in Annigeri and Morab province in Navalgund taluk of the
Dharwad district covered by the study.
The responses of the 200 selected farmers in the 10 villages as have
indicated that the cost of assembling of chilli is Rs 10 to 15 per bag.
The 20 respondents each in the 10 villages have indicated that the
minimum and maximum period of keeping their assembled chilli is a
minimum period of 1 month and a maximum period of 6 months.
The storage options for the chilly crop farmers are the Government
warehouses, private warehouses and APMC warehouses. The farmers have
indicated more than one option since they could not avail of only one of the
options of storage due to inadequacy of space.
All 200 respondent farmers have affirmed the uniform storage cost of
Rs.25 per bag per month.
All the 200 respondent formers of chilly crop of all ten villages have
affirmed the uniform period of keeping their chilly produce in the storage
was 3 to 6 months.
All the 200 respondent farmers have affirmed the use of gunny bags for
packing the produce before the same is sold in the market.
The respondent farmers have exercised two options of locations for the sale
of chilly crop. Sales have been taking place locally as well as at APMC
yards. The local sales of dry chilly take place due to prior commitment of
the farmers with the local merchants based on prior advances received by
the farmers.
138
All 20 respondents each in the ten villages of two provinces of in
Navalgund taluka have indicated that the need for immediate cash
compelled them to sell their chilly crop produce locally.
Repayment of old debt to merchants and moneylenders also compelled all
the 20 respondents each in the 10 villages to sell their produce locally.
They compelled them to sell locally was to avoid the transport cost in
carrying the produce to APMC.
All the 20 respondents in each villages of two provinces have also
mentioned that the local sales of dry chilly by them were due to the small
quantity and storage difficulties of the produce.
The responses of the 200 farmers engaged in production and marketing of
cash crop sell their produce through commission agents and cooperative
marketing societies. The responses indicate complete unanimity among all
the farmers selected for the study.
Majority of 60 and 54 respondents are satisfied with the channel of
distribution in their sales of dry chilly. A substantial number of 40 and 46
respondents are not satisfied with the channel of distribution.
The responses of the 200 chilly growing farmers indicate that they are all
selling their produce in more than one market. The markets where they sell
their dry chilly crop include local market and APMC.
All the 100 farmers in Annigeri province sell their dry chillies in local
market to a tune of 50% to 60%. The same practise is prevailing in the
Morab province.
Grading is generally done by the growing farmers themselves with the help
of expert labuor.
The annual cost of grading of chilli is Rs. 400 and above and Rs. 400 or
less per quintal.
The respondent farmers 200 have asserted that they did not insure their
139
produce before it was sold. Hence they did not incur any cost in insurance.
The respondents suggested that the cost of insurance was high and hence
they did not go in for insuring the dry chilly.
A large majority of 175 farmers have used hired vehicles while only 25
farmers have used their own vehicles for transporting of their dry chilly
produce in Annigeri and Morab province.
The sources of market information are reports of traveling salesmen,
market intermediaries like wholesalers and retailers, records of business
etc.
Information obtained through personal interview with the farmers revealed
that the main sources of market information were commission agents,
APMC newspapers and Radio and TV
The respondent farmers have indicated that they have relied on their own
funds and bank loans for their marketing expenditures. There is again a
complete unanimity of opinion among all the 200 respondent farmers.
Information collected from the respondent farmers growing chilly crops
indicate that the major areas of marketing cost relate to packing, storage,
transport, grading and weighing.
Responses of the 200 cash crop growers covered by the study clearly
indicate that they are not satisfied with the present system of price fixing
for their produce.
The dry chilly prices in the study area have prevailed at a steady range of
Rs. 4000 to Rs. 7000 and above.This is affirmed by all 200 farmers of the
two province in Navalgund taluk.
Major marketing problems of dry chilly in the study area: Inadequate
storage and High cost of Storage, High cost of Packing Material, Charges
of Commission Agents is high, Transport Cost is high, Insurance Cost is
high, Inadequate Market Information, Weighment of Cash crop is Faulty,
140
More samples of the Farmers‟ Produce are taken by the Merchants, Pricing
is Faulty and Cost of Production is not Considered by Buyers and Delayed
Payment by Buyers like mills and Marketing Societies.
Hypothesis and the Research Finding:
The researcher‟s five hypotheses have been vindicated by research
findings based on the personal interviews with dry chilly farmers covered by
the study in the ten villages of the Annigeri and Morab province of Navalgund
taluk of the Dharwad district.
Suggestions:
1. The productivity level of the cash crops is low in the areas cultivated by the
respondent owners. It is obvious that one of the main reasons for the low
productivity in cash crops is the use of poor quality seed for sowing which
often results in low plant population leading to lack of response to improved
management practices. This calls for the use of quality seed which is the
foundation of efficient and productive agriculture. High quality seed is the
most remunerative input in successful crop production and also better
utilization of inputs.
2. The seed productivity can be enhanced through the following measures.
i. Bringing more oilseeds area under protective irrigation.
ii. Integrated nutrient supply and management.
iii. Efficient crop management practices starting from adoption of proper
crop rotation.
iv. Suitable soil and moisture conservation practices.
v. Timely planting, timely weed management and need based crop
protection.
3. It is found that the seed rate is very high (100-120 kg/ha) with low yields (8-
10 kg/ha), the seed multiplication ratio is very low (1:8) compared to other
141
crops. This is serious constraint in cash crops for faster coverage of
improved seeds of cash crops. There is therefore, need to make use of all the
viable seeds in cash crops to minimize the cost of the seed and to cover
more area under high yield.
4. It is necessary to ensure timely supply of inputs at economical cost and to
provide for plant protection measures and take steps for aggressive
extension.
5. Efforts should be directed towards increased productivity through
development of suitable verities for different agro-climatic zones by
applying recommended fertilizer and pesticides. Concerted efforts should be
directed towards strengthening research and extension system. Technology
break through achieved incase of certain crops like rice and wheat is yet to
touch cash crops.
6. Dependence on rain fed cultivation of cash crops should be reduced
Measures should be initiated to increase irrigation facilities for cash crops
farming during rabi season. Research studies have shown that cost benefit
ratio was higher in terms of net income, farm business income, family
labour income and farm investment income on irrigated farms compared to
rain fed farms.
7. Market scenario for cash crops reflects some major hurdles particularly for
the small village farmers who are not capable of integration of their
marketing operations with the urban assembling centres. The local sales of
cash crops at the village level are still ramphant and substantial. The major
factor causing local sales is the financial limitations of the farmers. These
small cash crops growing farmers have prior financial commitment with the
local merchants and money lenders who advance money to the farmers on
the tacit understanding that they should sell their produce to them only.
Generally such sales are made at an unremunerative low price. The farmers
invariably suffer loss of income. Local sales also take place when the
142
farmers are hard pressed for cash requirement or when the quantity of cash
crops is small or when the farmers cannot afford to meet the transport cost
of taking the cash crops to APMC. All these factors result in local sales and
loss of income to the cash crops producers. Hence there is need for reducing
the local sales by arranging bank finances to these farmers. The APMC can
play a more active role in this direction to minimize the incidence of local
sales and the consequent loss of income of the cash crops growers.
8. There is need for arranging cheaper means of transport for lifting the cash
crops produce from the premises to assembling market. APMCs should
arrange for the cheaper transport facilities so that there can be more inflow
of cash crops at the market yard which would be useful to both the farmers
and the APMC.
9. Storage facilities are found inadequate and this may reduce the retention
capacity of the cash crops growers for a better price at a later date. They
will be forced to sell their produce at a un-remunarative price. Hence the
government agencies and the APMCs should try to provide greater facilities
of storage at lower cost.
10. There is need for organizing alternative channels like marketing and
processing cooperatives to operate in the market to create price competition
in different channels to provide better decision-making.
11. The intervention of government and corporate bodies like oil federations
National Dairy Development Board etc. would be helpful in increasing the
market competition and also in reducing the disparities in distribution of
marketing margins among intermediaries by stabilizing the price trend to
some extent.
12. It is necessary to retain commission agents as an alternative. However there
is a need for effective enforcement of market regulation for cash crops
marketing declaring the crop as a notified commodity.
13. Providing of adequate marketing finances at economical cost is necessary
143
for making the cash crops marketing as profitable one.
14. It is necessary for the government agencies and the APMCs to bring down
the overall level of marketing costs in the areas of storage, packing,
transport grading and payment of charges to commission agents.
15. The farmers and the APMCs should try to enhance the value addition of
cash crops through proper processing of seeds so that the farmers can get a
better price for their produce.
16. The marketing mal practices like faulty weighing of the produce, taking
excess samples from the farmers sales stock, and excessive charges of
commission agents excluding excessive quantity of cash crops on grounds
of damage etc. should be properly dealt with by the regulated markets.
17. Proper market information to the cash crops growers should be
disseminated through proper channels by the APMCs and the government
agencies.
18. The delay in payment of the sale proceeds to the farmers by the buyers like
oil mill units; commission agents etc. should be prevented by the APMCs
and the government.
19. To meet the challenges of cash crops in general and cash crops in particular
in the post WTO regime there is need to adopt multi-prongd strategy. This
involves;
i. Enhancing cash crops production through area expansion and
ii. Productivity improvement through better adoption of improved
technology
iii. Value addition to cash crops and oils to increase their consumption.
iv. Overcoming the constraints of domestic marketing of oils seeds and its
products and Liberalising trade in oil seed economy.
Major increase in area under oilseeds is possible through introduction of
cash crops as intercrops in widely spaced crops and through crop
intensification. Where there is limited scope for bringing additional area
144
under oilseeds the bulk of future increases in oilseeds production have
to come primarily from land saving technologies highlighting a
combination of high yielding plant type and balanced crop nutrition.
20. An optimal balance has to be struck by the policy makers in cash crops
processing sector. Efficiency and economy should not be sacrificed at the
time of employment creation. Modernization to the oil seed processing
industry should be encouraged. There is need to remove all barriers
regarding processing, storage and movements of cash crops.
21. To enhance the efficient and effective marketing of cash crops, the
production strategy of cash crops should involve the following components.
i. Delineating efficient zone for different oil seed crops through crop
ecological zoning.
ii. Adequate supplies of quality seeds of improved varieties and hybrids.
iii. Bringing more cash crops are a under protective irrigation.
iv. Integrated nutrient supply and management.
v. Efficient crop management practices starting from adoption of crop
rotation, suitable soil and moisture conservation practices
vi. Timely planting
vii. Adequate plant stands through adjustment in seed rate and thinning.
viii. Timely weed management
ix. Need based crop nutrition
Timely harvest and safe storage. All these will go a long way in
enhancing productivity of cash crops.
********
145
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104, 2005-06.
ANNUAL REPORTS
Annual Report -A.P.M.C.,Annigeri (Navalgund Taluka) -A.P.M.C.,Annigeri , 2003-04 to 2009-10.
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164
MARKETING OF CHILLY IN NAVALGUND TALUKA IN THE STATE OF KARNATAKA
Questionnaire Schedule
(For Farmers)
A - General Information about the Farmer (Big/ Small)
1. Name 2. Place:
3. Taluka 4. Sex: Male / Female
5. No. of family members : Male________ Female______ Children ____
6. Age
7.Education : Primary/secondary/PUC/Diploma/ Degree/PG/Others
8. Main Occupation : Agriculture / Trade/ Service/ Industry/ Others
9. Subsidiary Occupation: 1)________ 2) _________ 3)_______
10. Annual Income of the family : From main occupation Rs. __________
From subsidiary occupation Rs.____________
11. Caste ________
12. Religion ________
13. Martial status : Married / Unmarried
PROPERTIES DETAILS
1. Residential House : (i) Owned (ii) Rented ii) Farm House
– Yes [ ] No[ ]
2. Livestock: i)Bullocks No‟s ___ ii)Cows No‟s ___iii)Buffalo No‟s____
3. Vehicles: i) Cart No‟s _____ ii) Two Wheelers No‟s _____
iii) Tractors No‟s ____ iv) Trucks No‟s _____
v) Tempo No‟s _____ vi) Others No‟s ____
B - Land And Production
4. Lands
A i.) Owned Acres _____ ii) Rented Acres_____ iii) Total Acres _____
B. I). Red Soil Acres ____ ii) Black Soil Acres___
iii) Others Acres ______
C. i) Irrigated Acres _____ ii) Non-Irrigated Acres _____
165
5. Types of Cash Crops Grown
Crop Acres Red soil Black soil Irrigated Non-Irrigated
Chilli
Cotton
Groundnut
Sunflower
Safflower
Linseed
Castor
6. Production of Cash Crops
Production 2003-
04
2004-
05
2005-
06
2006-
07
2007-
08
2008-
09
2009-
10
Ground nut
1.Area Acres
2.Area Output
(Quintals)
3.Yield / Acre (Kg/
Quintals) Chilli
1.Area Acres
2.Area Output (Quintals)
3.Yield / Acre (Kg/
Quintals) Cotton
1.Area Acres
2.Area Output (Bale)
3.Yield / Acre (Kg)
166
7. Cost of production per Acre/ Quintal
Groundnut Chilli
Cotton
I. Labour
1. Tilling and manuring
Sowing
2. Cleaning the crop etc
3. Irrigation work
Crop cutting
4. Harvesting
II. Inputs
1. Seeds
2. Manure
3. Water & Electricity for
irrigation
4. Pesticides
III. Over Head
1.Rentals for hired vehicles
2. Rental for harvesting
machinery
3. Rentals for Hired lands
4. Interest on known for
agriculture production
5. Electricity for Farm house
6. Salary of regular worker
7. Petrol and Diesel cost of
owned vehicles
8. Others
D. Investment in Farm Equipments
Provide details about your Investment in the following:
1.Total acreage of land owned Acres _______
Current value of the Land owned Rs._____
167
2. Vehicles Agriculture Machinery and Farm House
i) Cart____ No.s_____Value Rs._______
ii) Agricultural Implements ValueRs.________
iii) Tractor No.________ Value Rs.________
iv) Farm House No._____ Value Rs._______
v) Trucks No. ________ Value Rs._______
vi) Harvesting Machine Value Rs. ________
vii) Irrigation Pumpsets Value Rs. _________
viii) Pestcidie Sprayer Value Rs. __________
ix) Storage for Farm Produce Value Rs. __________
x) Others
E. Finance for Investment
1. Have you Obtained Loans for financing the above Investments.
Yes [ ] No [ ]
If yes specify
Sl.No. Purpose of
Loan
Amount of
Loan
Source Interest
Rate
Percentage
Amount
Repaid
(Rs.)
1 Purchasing of
Tractor
2 Harvesting
machine
3 Irrigation
Borewell
4 Irrigation
Pump sets
5 Cart
6 Leave Stock
7 Farm house
8 Purchasing of
Land
9 Others
2. Have you obtained loans from other sources in addition to the above for your investment in
farm of operations : equipments? Yes[ ] No[ ]
168
3. If yes specified.(Money lenders/Friends/Relatives/Finance corporation)
Sl.No Purpose of
additional
Loan
Source of
additional Loan
Amount of
Loan (Rs.)
Interest
Rate
Percentage
1
2
3
4
4. Working capital
How do you finance your working capital requirements for your farm operations specify?
1) Own funds 2) Banks 3) Private money Landers 4) Friends and Relatives 5) Finance
corporation etc. 6) Others
5. Specify your dependents for working capital on each source?
Source Percentage
Own Funds
Banks
Money Landers
Friends / Relatives
Finance Corporation
Others
Total 100
F. 1. a) What factors do you consider while deciding to grow Cash Crops in general
groundnuts in particular on your farm specify and rank them
Sl.No. Factors Rank
1 Good unit price
2 Low unit cast of production
3 Low requirement of water
4 Less enable to pests and disease
5 More demand in the market
6 Soil is more suitable for the Cash Crops.
7 Low Requirement of manure
8 Low labour requirement
9 Crop duration is less
10 Produce is not perishable
11 Others
169
2. Do you follow new and innovative method of cultivation of Cash Crops?
Yes [ ] No [ ]
3. Do you get adequate and quality seeds of Cash Crops? Yes [ ] No [ ]
4. Do you avail of experts a advice in your farming of Cash Crops?
Yes [ ] No [ ]
5. Do you alter the acreage of land under Cash Crops on the basis of market trends and price
changes? Yes [ ] No [ ]
6. How many crops of Cash Crops do you grow in year?
One [ ] Two [ ] Three [ ]
G. Employment
1. How many member of your family work on your farm? Specify
Male Female Children Total
No. of members
Working on the
Farm
2. How many hard workers do you employ the cultivation of Cash Crops? Specify
I) Casual No.s- II) Regular No.s- III) During Session No.s-
3. Do you require skilled workers for cultivation of Cash Crops?
Yes [ ] No [ ]
If „yes‟ how many of them do you required? No.s ____________
4. What is the rate wags paid of hard workers? Rs. ___________ per day per child
5. What is the annual Cost of labour for cultivating Cash Crops per acre Rs.__________ ?
170
MARKETING OF CHILLY IN NAVALGUND TALUKA IN THE STATE OF KARNATAKA
ASSEMBLING
1. Where do you assemble your cash crops after the harvesting?
Farm House [ ] Store Room [ ]
Residential Area [ ] Rented Premises [ ] Others [ ]
2. What is the annual cost of assembling your produced? Rs._______
3. What is the duration of keeping the produced assembled before shifting them to storages?
1 week [ ] 2 weeks [ ]
1 month [ ] more than 1 month [ ]
PACKING
1. How do you pack your produced of cash crops?
Gunny Bags [ ] Synthetic Bag [ ] Others [ ]
2. What is the annual cost of packing cash crops ? Rs. ________
STORAGE
1. Where do you store your cash crops before sale?
Govt. Warehouse [ ] Private warehouse [ ]
APMC warehouse [ ] Others [ ]
2. What is the annual cost of the storage? Rs.______
3. Do you get adequate storage facility
Yes [ ] No [ ]
4. What is the average period of storage of the produced before the annual sale of the
produce?
One Week [ ] Two Week [ ]
One Month [ ] More Than One Month [ ]
171
LOCATION OF SALES
1. Where do you sell your cash crops?
Locally [ ] APMC [ ]
Outside Taluk [ ] Out side District [ ]
2. If you are selling locally give reason.
i. Need for immediate cash
ii. To repay old loans to merchants / money lenders / others
iii. To ovoid transport cost to carry the produced to APMC
iv. The quantity of produced is too small to take it to APMC / outside the local place
3. If you are selling through APMC give reasons
i. APMC ensures better price
ii. APMC provides facilities for storage
iii. APMC provides facilities for grading
iv. APMC provides facilities for proper weighing
v. APMC provides facilities for better market information
vi.
4. If you are selling your produced outside taluka or district give reasons
i. Mills in outside areas offer better price for the cash crops.
ii. Advance money is given for the produce.
iii. Waiting for better price is avoided.
iv.
v.
CHANNELS OF DISTRIBUTION
1. What is channel through which you sell your cash crops?
Channel Percent
1. Whole sellers
2. Commission agents
3. Cooperative marketing society
4.
5.
172
2. Are you satisfied with the channel of distribution through whom you are selling your cash
crops?
Yes [ ] No [ ]
If No, Specify reasons
i. Delay in payment
ii. Excess commission on sales
iii. Taking excess samples
iv. Faulty weighing
v.
3. Do you sell at more than one market?
Yes [ ] No [ ]
If yes give details
Market Percent
Local Sales
APMC
Out side Taluka
Directly To Oil Mills
Out side District
Other
100
GRADING
1. Do you grade your cash crops before selling?
Yes [ ] No [ ]
2. If yes who does the grading
i. Government licensed graders
ii. Private graders
iii. APMC nominated graders
iv. Wholesalers/commission agents grader
v.
173
3. How is grading beneficial to you?
i. Ensures better price
ii. More sales receipts
iii. More demand
iv.
4. What is the annual cost of grading? Rs.____________
INSURANCE
1. Do you insure produce before sales?
Yes [ ] No [ ]
2. If yes what is annual cost of insurance? Rs.__________
Yes [ ] No [ ]
3. If no give reasons
No need [ ] insurance cost is high [ ]
TRANSPORT
1. What type of transport do you use to carry your cash crops to market for sale?
Truck [ ] Tractor [ ]
Cart [ ] Rly [ ] Other (specify) [ ]
2. Do you use your own vehicles?
Yes [ ] No [ ]
3. If no do you use hired vehicles?
Yes [ ] No [ ]
4. What is the annual cost of transport for marketing your cash crops?
Rs.______________
MARKETING INFORMATION
1) Where do you get market information on price, demand, etc. for selling your produce?
i. Wholesale merchants
ii. Commission agents
iii. APMC
174
iv. News Papers
v. Radio/TV
vi. Friends / Relatives
2) Do you incur any cost on getting information?
3) If „yes‟ what is the annual cost Rs. __________
4) Are you benefited by marketing information? Yes [ ] No [ ]
5) If „yes‟ specify
i. Can get better price
ii. Can get proper channel of distribution
iii. Can choose proper buyer
iv. Can avail of government facilities of support price etc.
MARKETING FINANCE
1. Don you require finance for marketing your cash crops? Yes [ ] No [ ]
2. If Yes mention the purpose for which you need finance
Purpose Payments per Year (Rs.)
i. Storage
ii. Grading
iii. Transport
iv. Payment of cess-tax etc.
v. Insurance
vi. Travel expenses for
getting Market
information etc.
vii. Agents Commission
viii. Packaging
ix.
3. How do you raise finance?
Source Percent
i. Own funds
ii. Bank loans
iii. Advance from traders
iv. Friends/Relatives
v. Money lenders
vi. Others
175
MARKETING COST
1. What is the total cost of marketing cash crops per year? Rs._________
2. Give details
Cost item Amount
i. Packing
ii. Storage
iii. Transport
iv. Insurance
v. Government and APMC
cess
vi. Grading
vii. Market information
travel phone etc.
viii. Agents commission
ix. Others
Total
PRICING
1. How is the price fixed for your cash crops?
i. As per prior agreement with buyers
ii. Fixed by whole sale merchants
iii. Fixed by commission agents
iv. Fixed by mills
v. Fixed by government
vi. Fixed by co-operative marketing society
vii. Fixed by market supply and demand
2. What is your role in fixing the price of cash crops?
i. Assert a price with buyers through bargaining
ii. Accept the price prevailing in the market
iii. Leave the decision to commission agent/whole sale merchants
iv. Accept the APMC decision
v. Accept the Government rates
vi. Accept the price offered by Mills
vii. Others (Specify) _____________
3. Do you consider the present system of fixing price is reasonable?
Yes [ ] No [ ]
4. If no give reasons
176
i. Price is not commensurate with the cost of production [ ]
ii. Price is arbitrary [ ]
iii. Price indicates exploitation by middle men [ ]
iv. Price is not influenced by government price support policy [ ]
v. Others [ ]
5. What suggestion do you offer for getting better price of the cash crops?
i. Organizing cooperative marketing societies for selling the produced
ii. More active role by the APMC in getting better price
iii. Selling directly to oil mills and avoid the service of commission agents
iv. Others
v.
6. Give details of the price of cash crops per quintal? Rs……………
Price 2003-04 2004-05 2005-06 2006-07 2007-08
Per Quintal
(Rs.)
MARKETING PROBLEMS
1. What are the major problems of marketing your cash crops? Rank them
Problems Rank
i. Inadequate storage / high cost of storage
ii. High cost of packing material
iii. Cost of grading is high
iv. Charges of commission agents is high
v. Transport cost is high
vi. Insurance cost is high
vii. Inadequate market information
viii. Weighment of government is faulty
ix. More samples are taken by merchants
x. Pricing is faulty and cost of production is not
consider by buyers
xi. Delay payment by buyers, mills and marketing
Societies
xii. Facilities of APMC are inadequate
2. How can the above marketing problem be overcome? Make your suggestion
i.
ii.
iii.
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MARKETING OF CHILLY IN NAVALGUND TALUKA IN THE STATE OF KARNATAKA
Questionnaire Schedule
(For Intermediaries)
I 1) a) Name: b) Place: c) Taluka
d) Age: e) Education: f) Caste
g) Religion: h) Major Occupation
i) Subsidiary Occupation
j) Status as Intermediary: Wholesale merchant/ Commission Agent
II Since how long are you working as Intermediary? ______ Years
III Are you licensed by the APMC? Yes No
IV Are you working in the APMC? Yes No
V) What Services do you provide to the groundnut farmers in marketing their produce?
Facility Owned facility Arranged From Others
1. Storage Facility
2. Packing
3. Transport
4. Grading
5. Marketing Information
6. Weighing
7. Finance in Advance
8. Insurance
9. –
10. –
VI. How do you arrange for the scale of the farmers?
1. Bring the buyers and seller together and settle the deal
2. Buy the cash crops from farmers directly and sell the same subsequently
3. Provide the necessary information to farmers about the price quantity of the cash crops
demanded by the buyers.
178
VII. How much do you change for the sale transactions of cash crops to sellers and buyers
i. Rs._________________________________ per quintal
ii. As per the APMC rates Rs. ______________ per quintal
VIII. What percentage of the sales of cash crops of farmers is sold through Intermediaries?
i. ________________________ Percent
ii. ________________________ Percent
IX. What is the nature of competition among the intermediaries in the sale of cash crops?
i. Severe
ii. Normal
iii. Minimum
iv. No competition
X. Do you arrange for immediate sale and payment to farmers for the sale of their of their
cash crops?
Yes No
XI. Who are the main buyers of cash crops at your market area?
Sl. No. Buyers Share in Percent
1 Mills
2 Seed companies
3 Seed Merchants
4
XII Who fixes up the price of cash crops in your market area?
i. Buyers ii. APMC iii. Large of mills
iv. Intermediaries v. Bargaining between sellers and buyers.
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