The present study was based on information collected from 50 chilli growers, 12 retailers, and eight wholesalers from the Mokokchung district of Nagaland in the crop year 2012-13 through a pre-tested well designed questionnaire. Purposively, the paper intended to discover the surplus, cost, margin, and price spread of chilli production and marketing in Longsa village. The study revealed that after holding 9.5% for domestic purpose, producers were left with 90.5% as marketable surplus of which the actual marketed surplus was 86.33% due to 4.17% loss in spoilage and wastage. Regression coefficient with and without the dummy factor showed that area and production were two major determinants having a positive impact on marketed surplus at the 1% probability level of significance. Furthermore, it was observed that a majority of the farmer-producers (52.3%) sold their produce to retailers, that is, channel - II, indicating the most prominent channel. The net price received by producers in consumer's rupee in channel - I was 97.63%, channel - II: 82.43%, and channel - III: 61.9%, signifying that the producer-consumer channel was the highest marketing efficiency channel according to Shepherd's and Acharya-Agarwal's methods. It further concluded that 93% of chilli was traded in the market by way of retailers and wholesalers, and only 7% within the village.

1. Acharya, S.S., & Agarwal, N.L. (2001). Agricultural marketing in India. New Delhi: Oxford & IBH Publishing Company.
2. Acharya, S.S., & Agarwal, N.L. (2010). Agricultural marketing in India (4th Ed.). New Delhi: Oxford & IBH Publishing Co. Pvt. Ltd.
3. Balappa, S.R., & Hugas, L.B. (2003). An economic evaluation of onion production and its marketing system in Karnataka. Agricultural Marketing, 46 (2), 22-26.
4. Barakade, A.J., Lokhande, T.N., & Todkari, G.U. (2011). Economics of onion cultivation ant its marketing pattern in Satara District of Maharashtra. International Journal of Agricultural Sciences, 3 (3), 110-117.
5. Chauhan, S. K., and Chhabra, A. (2005). Marketable surplus and price-spread for maize in Hamirpur Districts of Himachal Pradesh. Agricultural Economics Research Review, 18 (1), 39-49.
6. Chole, V.M., Talathi, J.M., & Naik, V.G. (2003). Price spread in marketing of Brinjal in Maharashtra state. Agricultural Marketing, 46 (2), 5-8.
7. Christian, R.R, Zala, Y.C., & Gondalia, V.K. (2015). Marketing appraisal of lime (Citrus aurantifolia) in middle Gujarat. Indian Journal of Economics and Development, 11 (3), 693-699. doi:10.5958/2322-0430.2015.00077.3
8. Dandekar, V. M. (1964). Prices, production and marketed surplus of food grains. Indian Journal of Agricultural Economics, 19 (3), 86-195.
9. Dastagiri, M.B. et al. (2013). Indian Vegetables: Production trends, Marketing efficiency and export competitiveness. American Journal of Agriculture and Forestry, 1 (1), 1-11. doi: 10.11648/j.ajaf.20130101.11
10. Govt of India. (1976) . Report of National commission on Agriculture (1976). In, Supportive services and incentives, Part XII (pp.110-186). New Delhi: Govt. of India.
11. Gunwant, V. K., Hussain, M., Purohit, R. C., Ali, S. M. F., & Rana, D. (2012). A comparative study of production and marketing practices of vegetables in Nainital and U.S. Nagar district of state of Uttarakhand, India. International Journal of Advances in Computing and Information Technology, 1 (6), 569-578.
12. Gupta, A. K., & Ram, G.S. (1979). Behavior of marketing margins and costs of vegetables in Delhi. Indian Journal of Agricultural Economics, 43 (4), 209-210.
13. Joshi, G. (2011). An analysis of marketed surplus and price spread of Brinjal in Western Uttar Pradesh. Asian Journal of Management Research, 2 (1), 484-490.
14. Jyothi, S. H., & Raju, V.T. (2003). Study on marketing of Crossandra, Jasmine and Rose flowers in east Godavari District of Andhra Pradesh. Agricultural Marketing, 46 (2), 2-4.
15. Kalidas, K., & Akila, K. (2014). Micro level investigation of marketing and post harvest losses of tomato in Coimbatore District of Tamil Nadu. Journal of Stored Products and Post Harvest Research, 5 (1), 1-7. doi:10.5897/jsppr2013.0156
16. Kaur, A., & Sidhu, M.S. (2015). Marketing of Potato in Jalandhar district of Punjab. Indian Journal of Economic Development, 11 (4), 823-832. doi: 10.5958/2322-0430.2015.00090.6
17. Kohls, R. L., & Uhl, J. N. (1980). Marketing of Agricultural products (5th Ed.). New York: MacMillan Publishing Company Inc.
18. Marothia, D. K., Gupta, S. P., & Chandrakar, M. R. (1996). Vegetables marketing: A case study of two markets in Chhattisgarh region of Madhya Pradesh. Bihar Journal of Agricultural Marketing, 4 (1).
19. Rajkrishna (1962). A note on the elasticity of the marketable surplus of a subsistence crop. Indian Journal of Agricultural Economics, 17 (3), 79-84.
20. Sadhu, B. R. (2011), Marketable surplus of potato. International Referred Research Journal, 2 (25), 65-66.
21. Shepherd, G. S. (1965). Marketing farm products: Economic analysis. Ames: Iowa State University press.
22. Shiyani, R.L., Khunt, K.A., Thanki, P.M., Gondalia, V.L, Gajjar, K.I., Ardeshna, N.J., & Thumar, V.M. (2007). An economic assessment of kagzi lime orchard in Saurashtra Region. Agrsco Report-2007. Junagadh : Department of Agricultural Economics, Junagadh Agricultural University.
23. Sreenivasa, M. D., Gajanana, T. M., Sudha, M., & Subramanyan, K. V. (2002). Post-harvest loss estimation in mango at different stages of marketing – A methodological perspective. Agricultural Economic Research Review, 15 (2), 188-200.
24. Srivastava, G .C. (1994). An empirical investigation into production, marketing and export potential of vegetables in Bihar. In A. Prasad & J. Prasad (Eds.), Development planning for agriculture. New Delhi: Mittal Publication.
25. Thakur, D. S. (1973). Pricing efficiency of the Indian Apple market. Indian Journal of Agricultural Economics, 28 (4), 105-114.
26. Thamizhselvan, K., & Murugan, P. (2012). Marketing of grapes in Theni District. International Journal of Marketing and Technology, 2 (9), 96-111.
27. Tyagi, D.S. (1990). Managing India's food economy. New Delhi: Sage Publication.