Economic analysis and value addition in chilli powder processing in Nagpur district

Abstract:

The study assessed the cost, returns and value addition of Chilli powder processing in six selected processing units of Kalamna, Kamptee and Ramtek tahsils of Nagpur district during 2025-26. The average annual production was 2,30,667 kg, with a total processing cost of ₹232.27/kg and selling price of ₹247/kg. The units earned an average gross return of ₹571.78 lakh/year and net return of ₹36.19 lakh/year, with a B:C ratio of 1.07. The overall break-even point was 3,299.83 kg/year, with a 98.57 per cent margin of safety. Processing generated ₹35.23/kg gross value addition, ₹20.81/kg net value addition and 16.64 per cent value addition, indicating that Chilli powder processing is an economically viable activity with good potential for value addition and income generation.