A Comparative Economic Analysis of GI Tagged Chilli and Hybrid Teja Chilli in the Guntur District of Andhra Pradesh, India

Abstract

Chilli is an important spice in every Indian cuisine and is grown throughout the country. Andhra Pradesh is India's largest chilli-producing state, contributing about 45 per cent of the country’s chilli production. The study was conducted in the Guntur district of Andhra Pradesh chosen purposively, where the geographical indication (GI) tagged Guntur chilli cultivation is concentrated. Data was collected from the selected 60 farmers using the questionnaire. The impact of Guntur Sannam chilli cultivation over Teja variety chilli cultivation was analysed using the Partial budgeting technique. The total cost of cultivation of Guntur Sannam chilli was lower (Rs. 1,69,798/acre) compared to Teja chilli (Rs. 1,85,027/acre) by 8.23 per cent. The Guntur Sannam chilli farmers realised a price of Rs. 19,283 per quintal while the Teja chilli farmers realised a relatively lower price of Rs. 17,566 per quintal which in turn determined the profitability of adoption of Guntur Sannam chilli cultivation. In terms of net returns per acre, Guntur Sannam chilli farmers earned Rs. 1,44,519 per acre while Teja chilli growers earned Rs. 1,18,865 per acre showing a substantial difference in net returns (21.5%). Partial budgeting of Guntur Sannam chilli and Teja variety chilli farms revealed that the economic worthiness i.e., net gain of Guntur Sannam chilli cultivation over Teja variety chilli cultivation was Rs. 24,309 per acre. Thus, there is a need to increase the awareness of GI-tagged chilli cultivation as it was inferred that the adoption of GI-tagged Guntur Sannam chilli cultivation was economically viable.