South Asian Journal of Social Studies and Economics

Chilli is the most ubiquitous spice used in Bhutanese cuisine. Almost all dishes in Bhutan contain chillies in various forms. Bhutan produces many variants of chilli, one of which is Namgang chilli. Commonly known for being one of the hottest and tastiest variants in Bhutan, it is cultivated in Pakshikha, Bongo Gewog, Chukha. This study is aimed at identifying value chain actors of Namgang chilli, their roles, margins, and mapping out its overall value chain. The quantitative and qualitative data for this study were obtained from 29 of the 49 Namgang chilli-cultivating households in Pakshikha. Other published sources were also referred for gathering secondary data required for this study. The data were analysed using descriptive statistics, and chain mapping was performed to identify actors and their supply linkages. Margin analysis was conducted to assess the value gained by each player in the value chain. The identified actors of the value chain were input suppliers, farmers, transporters, retailers, and consumers. Farmers, retailers, and transporters share 53.6, 28.7, and 5 percentage of the margin respectively. Some of the critical constraints and challenges faced by farmers are rising pest infestation; lack of awareness about modern tools and techniques; lack of agency support; lack of motivation and encouragement for mass commercial farming; no initiative for organizing farmers’ cooperative/group; and ack of crop protection mechanism. The findings suggest that the overall value chain of Namgang chilli is underdeveloped. Therefore, relevant agencies should intervene and encourage farmers to form groups/cooperatives for Namgang chilli cultivation. The chilli farmers could be provided with technical supports in the form of knowledge and training to improve efficiency in the production and marketing of the commodity.