Profitability and Resource Use Efficiency of Producing Dry Chillies in Karnataka: 24448
Price: ₹ 1000
https://doi.org/10.35716/IJED-24448
Author: Kavya T., Suresh K., Lokesh G. B., Prabhuling Tevari and Vishwanath S.
Author Address: Department of Agricultural Economics, College of Agriculture, University of Agricultural Sciences, Raichur-584104 (India)
Abstract
The
present study was conducted in the Raichur and Ballari districts of the North
eastern Karnataka region since they are among the most productive in terms of
dry chilli crop acreage and production. The study revealed that farmers
realised a gross return of ?329760.00 per acre, with an average yield of 22.05
quintals and an average price of ?14950.00 per quintal. The cost of production of dry chilli per acre was ?5087.95.
Net returns on total costs were ?217570.48, while net returns on variable costs
were ?248259.24. Dry
chilli producers earned ?2.9 for every rupee spent in the
study region. Increasing returns to scale were noticed in both the Raichur and
Ballari districts. Overall, the research region exhibited increasing returns to
scale, with a proportional increase in dry chilli gross value when variable
factors were accounted for. The ratios of Marginal Value Product (MVP) to
Marginal Factor Cost (MFC) for farmyard manure (FYM), fertilisers, human
labour, and bullock labour were found to be less than unity, indicating
overutilisation of these resources. Conversely, the MVP to MFC ratio for land,
seeds, plant protection chemicals, and machine labour was greater than unity,
suggesting that there is scope to increase the use of these inputs—particularly
land area, seeds, plant protection chemicals, and machine labour in dry chilli
cultivation in the study area.
Keywords: Cost
of production, dry chilli, profitability, resource use efficiency.
JEL Codes:
D24, D61, Q12, Q13, Q14, Q18.
Description
Indian Journal of Economics and Development
https://doi.org/10.35716/IJED-24448
Impact Factor: 0.2 (2025)
NAAS Score: 6.30 (2025)
Indexed in Scopus (SJR = 0.15)