1

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

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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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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.

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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

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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

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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.

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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

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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

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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

135

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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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._____

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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

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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.__________ ?

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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 [ ]

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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.

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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.