Byadgi Chilli with Geographical Indication (GI)

A geographical indication (GI) is a sign used on products that have a specific geographical origin and a reputation that are due to that origin. A sign must identify a product as originating in a given place and the qualities,characteristics or reputation of the product should be essentially due to the place of origin. Since the qualities depend on the geographical place of production, there is a clear link between the product and its original place of production.

Agri products that has geo tag include Byadgi Chili, Coorg Arabica coffee, Nanjangud banana, Bangalore rose onion, Sirsi Supari, Wayanad Robusta coffee, Araku Valley Arabica, Himachali Chulli oil, Darjeeling Tea and Nagpur Orange are among the registered GIs in India. This Geo tag gives protection to the producer of genuine products that command premium pricing in domestic as well as international markets. “Once the GI protection is granted, no other producer can misuse the name to market similar products. It also provides comfort to customers about the authenticity of that product. Once a product gets this tag, no person or company can sell a similar item under that name. GI tags are covered under a law of the World Trade Organization (WTO).

GI tagged Byadgi Chilli

Byadgi chilies are fully wrinkled, long sized and highest level of dark red in color chili variety mainly grown in the Indian state of Karnataka. It is known for its deep red color and less spicy and consumed across India. It is named after the town of Byadgi which is located in the Haveri district of Karnataka. The business involving Byadgi chili has the second largest turnover among all Chilli varieties of India. There are two types of Byadgi chilies, dabbi and kaddi. Byadgi dabbi, which is small and plump, is more popular for its color, flavor and taste. Byadgi Chilli has been accorded Geographical Indication (GI) in February 2011.

The quality of Chilli varieties is measured in terms of the extractable red color pigment; this colour is measured in ASTA colour units. Byadagi Chilli has an ASTA colour value of 156.9. The higher the ASTA colour unit, the better the quality of chili and therefore the higher the price.

Commercial Purpose of Byadgi Chili:

An oil, oleoresin extracted from these chilies is used in the preparation of nail polish and lipsticks. 50 liters of oleoresin can be extracted from about 1 ton of Byadgi chilies. Companies have been set up in and around Byadgi that are involved in the extraction of oleoresin. This oleoresin is sent to Kerala where it is further refined before being exported to countries like US, Japan, Malaysia, Sri lanka and Europe. Byadgi chili is an important ingredient in spicy preparations and other food items of South India and is widely used in the Udupi cuisine. It is also used in meat preparations because of the bright red colour that it imparts to the meat. There are many extraction units involved in and around Byadgi are into grinding these chili into powder and selling them to masala manufacturers.

Online Trading (UMP) and Byadagi Market:

Byadgi market attracts traders from all over Karnataka and from neighboring Andhra Pradesh because of favorable conditions for the business like fair price, immediate payment and accurate measurement of the chili.

Five years back manual auctioning system was in place, but after intervention of government online trading system (UMP) was introduced which helps farmers, commission agent and traders by increasing efficiency of the market process. When trader quote price for required lot in the morning by evening results would be declared. Farmers also have advantage as the complete trade process gets over early evening.

Byadgi market has seen 32% raise in arrivals due to farmers from neighboring states are bringing their produce to Karnataka.  If we compare with the production of Karnataka and the produce collected in APMC Markets, it is much more than production of Karnataka. All this accessibility and more participation has seen more bids per lot. If you look at Byadgi market, the number of bids average bids the market receives as gone up from 6 to 10 bids per lot.

Byadgi market in Karnataka on some days received more than 1 lakh bids, the platform has capability to handle trade for this daily big volume. The UMP platform has capability to handle trade for this daily big volume. On introduction of UMP in the market the traders’ participation has increased by 225% on certain days when compared to their participation prior to introduction of UMP. Manpower requirement for auctioning in Byadgi market also have reduced drastically from 50 to 10.

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