Economic analysis on production and marketing of Chilli in Mokokchung District of Nagaland#

Abstract

The present study is based on information collected from 50 chilli growers, 12 retailers and 8 wholesalers from the Mokokchung district of Nagaland in the crop year 2012-13, through pre-tested well design questionnaire. Purposively the paper intent to discover the surplus, cost, margin and price spread of chilli production and marketing in Longsa village. The study resulted that after holding 9.5% for domestic purpose, producers are left with 90.5% as marketable surplus of which the actual marketed surplus is 86.33%; due to 4.17% loss in spoilage and wastage. Regression coefficient with and without dummy factor shows area and production are two major determinants having positive impact on marketed surplus at 1% probability level of significance. Further it has observed that a majority of the farmer-producer (52.3%) sell their produce to retailers i.e. channel – II indicating the most prominent channel. The net price received by producers in consumer’s rupee in channel – I is 97.63%, channel – II: 82.43% and channel – III: 61.9% signifying producer-consumer channel the highest marketing efficiency channel according Shepherd’s and Acharya-Agarwal methods. It further concluded that, 93% of chilli is traded in market by way of retailers and wholesalers and only 7% within village.

Key Words: Nagaland, production, marketed surplus, cost, margin, price spread, efficiency, constraints.