Introduction Marketing channels for chilli distribution Quality Parameters in chilli Pesticides residues on chilli Aflatoxin Contamination in chilli


Preparation for the market and grading:

  • Preparation of the produce for sale in the market is an important operation.
  • After picking, the important step is to dry them.
  • Chillies are sparcely spread on a levelled ground for drying.
  • The producers normally grade the produce after drying.
  • Some of the farmers sell the produce of different pickings separately as and when harvested after performing drying and grading.
  • Usually, they will separate out white discoloured and spoiled chillies during the processing and drying.


  • After completion of processing and grading the produce will be stored in gunny bags.
  • Usually, the farmers will store 15 to 20 kg of chillies in one gunny bag.
  • But after packing most of the farmers will sell away the produce without storing.
  • Some of them will store their produce anticipating a better price.

Assembling and distribution

  • The chief assembling agency engaged in the marketing of chillies is the local commission agent.
  • Almost all the producers market their produce in the village itself through the commission agent.
  • Nearly 70 percent of the farmers sold their produce through commission agent in the villages
  • This is because of longer distance from the market center.
  • The village merchant is an important agency in the assembling of chillies.
  • Village merchants assemble the produce immediately after harvest from cultivators who are indebted to them.
  • In most of the cases they are the representatives of wholesale merchants.
  • They will get commission from the farmers.
  • Wholesale merchants will finance them to assemble the produce and they will bear transportation cost also from assembling center to their godowns.
  • Wholesale merchant plays an important role in distribution also. Wholesale merchant export most of the produce provide storage facilities to the farmers those who want to store their produce.
  • These wholesale merchants will store the produce for some time to create demand in other markets.
  • After getting good price they will distribute the chillies.


  • Most of the produce is transported by motor vehicles from the villages to the market center.
  • Some of them are also using bullock carts.
  • Generally the commission agent will perform this function, but wholesale merchant will bear the cost.
  • Some farmers also performing this function.
  • Usually the transport cost is ten paise per bag per kilometer in the selected area.

Market functionaries

  • As the chief market functionary, the local commission agents plays vital role in this region so far as marketing of chillies is concerned.
  • Most of the transactions would take place in the presence of commission agent only.
  • The agent keep themselves informed regarding the availability of the produce and get into close touch with their wholesale merchants.
  • The weighed produce is packed and stored at the house of the grower to be moved when the purchaser could pool and more commission charge as 70 per cent of small farmers selling to the commission agent.
  • Marketing fee and commission charges accounted for a major portion of marketing costs, cost of grading and cost of transport follows next in all the sizes.

Price spread and market margins

  • Price spread is the difference between the price paid by the consumer and the amount received by the grower and is the margin that goes to pay all marketing agencies including processers, transporters.


Marketing channels for chilli distribution

Channel I

  • Producer 4 Village Merchant 4 Middle Men 4 Commission agent 4 Consumer 4 Retailer 4 Whole seller

Channel II

  • Producer 4 Retailer 4 Consumer
  • Price spread is more if the produce is channeling through channel I.
  • Price spread is low if the produce is channeling through Channel II because no. of middle men are less in channel II.

From the following information the price spread and market margins can be observed. (through commission agent) .

Price spread through Channel I

  • Price realized by the grower (average price of Rs.2,500.00 the sampled farms)

Cost incurred by the producer

Transport Rs. 15.00
Commission charge Rs. 13.00
Unloading Rs. 4.00
Sampling, watching and temporary storage etc. Rs. 12.00
Losses Rs. 15.00
Cost of packing (including gunny bags charge gunny bags cost 35/quintal ) Rs. 45.00
Total Rs. 104.00

Price paid by the wholesale merchant to the producer Rs.2500.00

Cost incurred by the wholesale merchant

Market fee 3.00
Weighment charge 3.00
Hamali / labour 4.00
Loading and unloading 8.00
Transport to his premises 12.00
Sales tax and turn over tax @ 31/4% 25.00
Profit @ 2% and interest on establishment 18.00
Losses in storage 13.00
Total 86.00
Wholesale merchant selling price and retailers purchasing price 2586.00

Cost incurred by retailer

Transport cost from wholesale merchant to retailer shop 8.00
Sales tax and turn over tax 25.00
Profit, interest and establishement charges 15.00
Losses 10.00
Total 58.00/quintal
Retailers selling price or consumer’s purchasing price 2644.00/quintal
Producer net price 2396.00/quintal
Difference of price between producer and consumer 248.00/quintal

From the above information the price spread and the producer share in consumers rupee can be observed.

Price spread through channel II

Price realized by the grower (average price of Rs.2,500.00 the sampled farms)

Cost incurred by the producer

Commission charge Rs. 13.00
Sampling, watching and temporary storage etc. Rs. 12.00
Losses Rs. 15.00
Cost of packing (including gunny bags charge gunny bags cost 35/quintal) Rs. 45.00
Total Rs. 85.00


  • The commission can be eliminated by selling the produce directly to the retailer.
  • Price paid by the retailer to the producer is Rs. 2,500.00

Cost incurred by the retailer

Transport charges from producer point to retailer shop Rs. 20.00
Sales tax and turnover tax Rs. 25.00
Property interest and establishment charges Rs. 15.00
Losses Rs. 10.00
Total Rs. 70.00

Retailer selling price or consumer purchasing price = Rs. 2,570.00

Producer net price = Rs. 2,415.00

Difference of price between producer and Consumer = Rs. 155.00

From the above two tables you can know the difference of price spread in different market channels.


Quality Parameters in chilli

  • Spices are aromatic vegetable substances used for seasoning of foods.
  • Spices are known to have prophylaetic and therapeutic value.
  • Chilli is one important spice used all over the world in one form or the other.
  • Chilli both in ripe and green fruit stage is an indispensable spice in Indian cuisine.
  • Chillies are known to stimulate the flow of saliva and simultaneously increase amylase activity thus increasing digestion of Carbohydrates.
  • Pungency of chillies is felt deep in the throat rather than in the front edge of root of the tongue.
  • Chillies are well known for their flavour and pungency and form important source of vitamin C.
  • In capsicum and chillies which are used in food preparations, quality is of much importance and is based on the following characters: a good pungency level, a bright red colour, a good flavour, medium -sized fruit with a moderately thin pericarp, a smooth glossy surface, few seeds in the fruit with firm stalk.
  • Medium sized fruits are preferred to long pods, owing to the fact that in storage they remain intact better than longer pods, which tend to break at the distal ends.
  • A fairly thin pericarp is preferred as drying is easily accomplished.
  • Chillies with a bright red colour command high prices than those which are dull red or orange or yellow in colour and deep red fruits tend to retain their colour in storage longer than those which are of lighter shade.
  • In case of pungent chillies which are used for the preparation of capsicum oleoresin, the appearance is of much less importance but a high capsaicin is essential. Soil type, manuring practice, management of pest and diseases, harvesting, drying and handling methods significantly influence the quality characters.
  • Chilli crop raised in red soils have bright red colour, than the crop raised in black cotton soils.
  • Fruits maturing during post rainy season have bright red colour while fruits maturing in rainy season have dull colour.
  • The pungency in chilli is due to capsaicin and other vanillyl amides.
  • The red colour of fruits is due to the Carotenoid pigment of which Capsanthin, the most important.
  • Only 25-30% of dry chilli is obtained from fresh ripe chilli fruits.

Dry chilli fruit contains

Crude fibre 18-40%
Protein 10-25%
Oleoresin 8-16%
Capsaicin 0.2 - 1.5%
Colouring matter 0.2 - 0.5%
Ascorbic acid 0.05 - 0.25%
Mineral matter 5-8%
Moisture 8-10%

  • In food and beverage industries, chilli has acquired a great importance in the form of oleoresin which permitted better distribution of colour and flavour in food as compared to chilli powder. The food industry prefers to use highly coloured and less pungent chillies for preparation of oleoresins.
  • The principal colouring pigment of dried chillies is carotenoid capsanthin.
  • This is accompanied by alpha and beta carotene, Zeaxanthin, cutein and few un identified xanthophylls.
  • The total pigment content in capsicum is between 4 to 5 grams per kilogram of dried fruits
  • Oleoresin is used in preparations of processed products and also incorporated into a number of pharmaceutical formulations.
  • Demand for high quality oleoresin is increasing in the international market.
  • G-4 (Bhagyalakshmi) variety released from Lam farm, Guntur contains high oleoresin content (111 ASTA units).
  • Capsaicin (C18H27NO3 is active ingredient responsible for pungency.
  • The pungency is so sharp that it is detectable to the palate even at millionth of dilution.
  • At present there are totally seven closely related alkyl vanillyl amides (Isodecenoic acid, Dihydro capsaicin, Non Dehydro capsaicin, Homo - capsaicin, Non anoic and decardidic acid vanillyl amides) which are responsible for total pungency in chilli which are referred as "Capsaicinoids".
  • The distribution of the pungent principle within the fruit is uneven.
  • The average Capsaicin in Indian chilli varieties is about 0.2 to 0.3 percent.
  • Hence, most of the Indian varieties are not suited for commercial oleoresin extraction as they need about 1% Capsaicin.
  • The percent capsaicin in fruits of Indian chilli varieties ranges from 0.002 to 1.86.
  • Capsaicin content of 1.86 percent has been observed in a cross between NP 34 x Hyb 17-1-1
  • Recently released Pusa sadabahar of C. frutescens is observed to contain 1% capsaicin, which is a ruling variety for Capsaicin extraction.
  • Small sized fruits contain high concentration of Capsaicin while long fruits contain low concentration of Capsaicin
  • Fruits to with thin pericarp contain higher Capsaicin as compared with varieties having thick pericarp.
  • Fruits with more placental tissue higher the Capsaicin content.
  • Chillies also form an important source of vitamin C (Ascorbic acid). Ripe chillies are known to have higher vitamin C content than Tomatoes.
  • Tetraploid chillies and ripe chillies contain higher vitamin C content than diploid and green chillies respectively.
  • All the chilli varieties tend to accumulate higher ascorbic acid when fruits turn toward maturity i.e., turning pink than green (unripe) or red (over ripe) conditions.
  • Ascorbic acid content in chilli fruits varies from 100 to 320 mg per 100 gram fruits.

American spice board prescribed standards for

Name of Spice Dead insects (counted) Mammals feacal matter (mg/pound) Other fecal matter (mg/pound) Mould weight % Insect damaged matter weight % Other matter %

Food and Quality control organization prescribed standards of limitation levels for chillie are as follows

Limitations Level
Insect and Mould effected chillie Insect and Mould damage should be limited to 3% of the weight on an average.
Chillie powder mould Mould percentage should not exceed 20% of weight on an average.
Insect excrete matter Excrete matter should not more than 50 or on average of 25 grams weight
Rodent excrete matter Rodent excrete matter and hairs should not more than 6 on an average of 25 grams weight.



Pesticides residues on chilli

  • Green chillies are consumed as a vegetable.
  • The commonly used pesticides on chillies are Lindane, Quinalphos, Acephate, Dicofol, Dimethoate, Monocrotophos, Triazophos Cypermethrin, Mancozeb etc.,
  • If pesticides are sprayed just - before harvest, the chilli fruits may contain residues above the prescribed maximum residue limit (MRL) fixed by FAO/WHO.
  • This may be hazardous to consumers and also pose export problems.
  • Therefore safe waiting periods after spraying for harvest are to be followed.

Waiting period for harvest of green chillies for various pesticides is given below:

Waiting period (days)

To decontaminate the residues keep chillies for 10-15 minutes in 2% salt solution and wash under tap water before use.


Aflatoxin Contamination in chilli

  • Aspergillus flavus, Aspergillus parasiticus and Pencillium puberulum produce aflatoxins. A.parasiticus is the most potent producer of aflatoxin.
  • Africa, India and South East Asia are regarded as the "high-aflatoxin-risk areas".
  • Aflatoxins are highly oxygenated heterocyclic compounds.
  • The eight characterized aflatoxins are B1, B2,G1 and G2 - named on the blue or green fluorescence's in U.V light. M1,M2 - first detected in milk of cows fed on groundnut meal, B2,G2 - derivatives of B1,B2, G1 and G2 are more commonly encountered.
  • They may occur together or independently.
  • Species of Aspergillus cause spoilage of stored products, as a result the percentage germination of grains falls, they are rendered unfit for food and contain toxins, which can cause health hazard.


Andhra Pradesh