Economic Analysis of Chilli Nurseries in Palnadu District Andhra Pradesh, India

Abstract

Despite facing challenges such as fluctuating market demand and rising input costs, the nurseries in Palnadu continue to play an essential role in the chilli cultivation sector, serving both domestic needs and export markets. This study delves into the operations, economic significance, and prospects of chilli nurseries in Palnadu, highlighting their critical role in sustaining the district's agricultural economy. The study was conducted on chili nurseries at Palnadu District of Andhra Pradesh, India. Data for the study was collected through a well-defined and pre-tested schedule, using personal interviews to gather accurate information. For the estimation of costs and returns, simple statistical tools such as descriptive statistics, frequencies, and percentages were utilized. The study highlights the economics of chili nurseries. Data were collected from 30 randomly selected nurseries across three mandals: Rajupalem, Sattenapalli, and Rentachintala. The study identifies two cultivation cycles. Cycle 1, where 58.33% of the area was under a contract growing model, had higher demand, leading to greater labor use (528.67 man-days/hectare) and higher costs (Rs. 2,106,947/hectare). Cycle 2, with only 39.17% cultivation due to reduced demand, required fewer labor inputs (202.4 man-days/hectare) and lower costs (Rs. 1,703,906/hectare). The average production per hectare was 4.14 million seedlings in Cycle 1 and 1.62 million seedlings in Cycle 2, generating net incomes of Rs. 1,493,143 and Rs. 323,141.50, respectively. The benefit-cost ratios were 1.71 in Cycle 1 and 1.19 in Cycle 2. The variation in cultivation costs between cycles is attributed to differences in input and service utilization, including human labor, manures, fertilizers, and specialized resources like coco peat.