October - December 2025

Advancing Chilly Marketing through Research and Direct Linkages

During December 2025, focused efforts were undertaken to strengthen chilly marketing, with emphasis on market research, quality assurance, and the establishment of direct trade linkages. In Mudukulathur, the CEO conducted an on-ground market study by interacting with traders and commission agents at the Paramakudi chilly market, gaining insights into the supply chain dynamics of Mundu chilly.

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Based on these interactions, the FPO identified the need for a structured market survey covering the entire Mundu chilly value chain—from producers and traders to exporters and end consumers—to better assess market potential. In parallel, plans were initiated to conduct a separate survey for masala products, particularly to understand demand for chilly powder in emerging markets.

To advance buyer linkages, Mundu chilly samples were sent to two traders for quality evaluation based on market references. The Mudukulathur leadership team also invested nearly three days in buyer outreach, holding discussions with prospective purchasers and negotiating payment terms. On the processing front, the Mudukulathur unit was used to prepare masala and chilly powder samples, which were subsequently sent to Chennai Mettax Laboratory for external quality testing to ensure compliance with market standards.

Past experiences continue to reinforce farmer confidence in collective marketing. In the Ilayankudi region, farmers reported that marketing chilly through the FPO in earlier cycles resulted in an 8% commission advantage, compared to individual sales. While the RS Mangalam market remains the commonly used platform, these outcomes highlight the potential of FPO-led marketing in securing better returns for producers.



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