Abstract
The study was undertaken on value chain analysis of castor in Salem district of Tamil Nadu. The major challenges of this study are financial constraints and non availability of value addition of castor inforamtion. The study mainly focuses on the trend’s issues from producer to consumer, throwing light on the price margins of different actors involved in the total castor value chain. Thalivasal and Macheri block was selected in Salem district. Three villages from Thalivasal block namely Kamakapalayam, Sitheri and Thiyaganur; Three villages from Macheri block, namely Vellar, Pukkampatti and Olaipatti, was selected purposively. From each village, 30 castor growers. This will constitute 180 castor growers and 60 traders; 60 consumers were selected randomly. It was found that the total costs incurred on castor cultivation were around Rs. 34,910/- per hectare. The net income was Rs. 65,090/- per hectare. Farmers were able to secure a net benefit-cost ratio of 1.86. However, four channels are prevailing in the study area, the predominant one is Producer to Trader to Oil Mill. The margins received by the traders and processors are found to be about Rs. 1,46/- and Rs. 1,471/- per quintal, respectively. The value of castor oil and castor cake extracted was found to be Rs. 7,179/- from one quintal of castor seed. Further, the cost of seed/raw material and cost of value addition/qt., raw castor seed was calculated to Rs. 4,803/-, and therefore the sum of value addition/qt., to Rs. 2,376/- Regulated market at Salem was not used for the marketing of castor seed in the study area, revitalize existing market yards because it is far away from the production point. There is a need to promote castor oil extracting mills and encourage new market networks, like contract farming arrangements must be improved in the study area. The total quantity of Castor YRCH 1 hybrid seeds sold from TCRS, Yethapur, for the period from August 2019 to August 2020 was 15141 kg with the monetization value of Rs. 59.43 crores.