Measuring Profitability of Chilli Pepper Production in Sindh, Pakistan

Chilli is one of the most important commercial crops of Pakistan. The intentions of present study was to investigate the cost of production and net returns of chilli production in the study area and determine the contributing factor of chilli profit function. Primary data for this study was collected purposively from various villages of Taluka Kunri district Umarkot through random sampling technique. Total five villages and twenty farmers from each village were selected randomly. The farm accounting method was applied for estimating cost, net returns and profitability in the production of chilli. The yield of chillies obtained was 1785.53 (Kgs) per acre and price per (Kg) was Rs. 102.81. Total cost of production of chilli with opportunity cost was Rs. 102543.44 and Rs. 85334.45 without opportunity cost per acre. Moreover, per acre revenue was Rs. 183506.74, similarly net return of chilli with opportunity cost was Rs. 80963.30 and without opportunity cost was Rs. 98172.29 per acre respectively. Government should take steps for the improvement of the structures, the diversification of the products and the added value allow access to new markets, better prices and better living standard for all the related in the value chain. Keywords: Chilli, Net Return, Profitability, Opportunity cost, Value chain DOI: 10.7176/JESD/11-8-09 Publication date: April 30th 2020