VALUE CHAIN DYNAMICS AND MARKETING EFFICIENCY OF BLACK PEPPER IN KOLLI HILLS, TAMIL NADU

Abstract

Black pepper (Piper nigrum L.) is one of India's most important spice crops, contributing significantly to rural livelihoods and the spice economy. However, inefficient marketing systems and the presence of multiple intermediaries often reduce producers' share in the consumer's expenditure, particularly in remote hill regions such as Kolli Hills, Tamil Nadu. This study analysed the value chain structure and marketing efficiency of black pepper with the objectives of identifying marketing channels, estimating stakeholder-wise marketing costs, analysing price spread and producer's share in the consumer's rupee, and evaluating the marketing efficiency of alternative marketing channels. Primary data were collected from 90 respondents, comprising 60 black pepper farmers, 15 wholesalers and 15 retailers, through a structured interview schedule during 2025. Value chain mapping, marketing cost analysis, price spread analysis, producer's share in the consumer's rupee and Acharya's Modified Measure of Marketing Efficiency (MME) were employed for the analysis. The study identified five marketing channels, with the Producer → Village Trader → Wholesaler → Retailer → Consumer channel emerging as the predominant marketing route. Marketing costs and price spread increased with the number of intermediaries, whereas the producer's share in the consumer's rupee and marketing efficiency improved in shorter marketing channels. The Producer → Consumer channel recorded the highest producer's share (87.83%) and marketing efficiency (MME = 7.22), while the value-added processing channel exhibited the lowest producer's share (54.74%) and marketing efficiency (MME = 1.21) because of higher processing and marketing costs. The findings suggest that strengthening Farmer Producer Organizations (FPOs), promoting direct marketing, improving rural marketing infrastructure and encouraging farmer participation in value addition can substantially enhance marketing efficiency, increase producers' income and strengthen the competitiveness of the black pepper value chain in Kolli Hills.