Value Chain Analysis of Dry Chillies in Kalyana Karnataka Region

The present study was undertaken in the Raichur and Ballari districts of the Kalyana Karnataka region since these districts are among the most productive in terms of dry chilli crop acreage and production. Primary data was obtained from the farmers and value creators in the dry chilli value chain and mapped to identify the actors, their roles, interactions, and value generation activities. This task resulted in primarily three value chains: Value chain I and II for dry chilli and Value chain III for processors. The findings of the study revealed that marketing efficiency is higher in Value chain II (2.43) and lower in Value chain III (1.14). Furthermore, the producer’s share in the consumers’ rupee was considerably smaller (42%) in Value chain III than in Value chain II (54.07%), owing primarily to the absence of middlemen. Whereas the share of value added cost was larger at the processor level (Value chain III), so was the degree of value addition. Because it affects the form of the product, the value addition of chilli at the processing stage is substantially higher than at any other step. Hence, more processing facilities for chilli products other than chilli powder are required and appropriate government policies may encourage capacity growth of existing units.