Economics and supply chain analysis of major spices in Middle Gujarat

India is a leading producer and exporter of spices, renowned for their distinctive aroma, texture and taste. Sustaining this position requires improvements not only in production and productivity but also in supply chain efficiency. This study examines the economics, supply chain structure, marketing efficiency, post-harvest losses and production constraints of three major spice crops—dry chilli, turmeric and ginger—in a representative spice-producing region of India. Primary data were collected from 300 farmers and key market intermediaries using a structured survey. The results indicate that ginger had the highest cost of cultivation (₹ 505509.27 ha-1), while dry chilli exhibited the highest benefit-cost ratio (2.30), reflecting superior economic viability. Although turmeric recorded the highest yield (305.60 q ha-1), its profitability remained moderate due to higher marketing costs and post-harvest losses. Short-distance marketing channels were found to be more efficient, offering higher producer shares and lower price spreads. Post-harvest losses ranged from 24.91 % to 25.81 % with the highest losses occurring at the retail level due to inadequate handling, storage and transportation. The study highlights that supply chain inefficiencies and post-harvest management significantly influence farm profitability. Strengthening market linkages and investing in post-harvest infrastructure are essential to enhance farmers’ income and ensure sustainable spice production.

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Publication Details

Journal
Plant Science Today
Published
2026-04-28
DOI
https://doi.org/10.14719/pst.12101
Primary Topic
Agricultural Economics and Practices
Type
article
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Economics and supply chain analysis of major spices in Middle Gujarat

DR Vahoniya, RS Pundir, B Bagda, A Rajwadi
Plant Science Today
Agricultural Economics and Practices
article

Economics and supply chain analysis of major spices in Middle Gujarat

DR Vahoniya, RS Pundir, B Bagda, A Rajwadi
article en

Abstract

India is a leading producer and exporter of spices, renowned for their distinctive aroma, texture and taste. Sustaining this position requires improvements not only in production and productivity but also in supply chain efficiency. This study examines the economics, supply chain structure, marketing efficiency, post-harvest losses and production constraints of three major spice crops—dry chilli, turmeric and ginger—in a representative spice-producing region of India. Primary data were collected from 300 farmers and key market intermediaries using a structured survey. The results indicate that ginger had the highest cost of cultivation (₹ 505509.27 ha-1), while dry chilli exhibited the highest benefit-cost ratio (2.30), reflecting superior economic viability. Although turmeric recorded the highest yield (305.60 q ha-1), its profitability remained moderate due to higher marketing costs and post-harvest losses. Short-distance marketing channels were found to be more efficient, offering higher producer shares and lower price spreads. Post-harvest losses ranged from 24.91 % to 25.81 % with the highest losses occurring at the retail level due to inadequate handling, storage and transportation. The study highlights that supply chain inefficiencies and post-harvest management significantly influence farm profitability. Strengthening market linkages and investing in post-harvest infrastructure are essential to enhance farmers’ income and ensure sustainable spice production.

Plant Science TodayVol. 13(sp2)
Junagadh Agricultural University (IN), Anand Agricultural University (IN)
Openalex Percentile: Top 4%
Agricultural Economics and Practices
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