Family : Solanaceae Annual plant. Important vegetable cum spice crop. Capsicum annum is cultivated either for pungent fruited genotype called chilly. Non pungent fruited genotype called capsicum. Indian chilly constituent are important for nutritional value, falvor, aroma texture and color. It comprises numerous chemicals including fattyoils, carotenoids, vitamins, proteins, fibres and minerals. Chilies are low in sodium and cholesterol free, rich in vitamin A, C and E. Good source of potassium and folic acid. Red color is due to pigment capsanthin and its biting pungency is due to capsaicin. Uses of chilly : Food flavouring or seasoning. It is stimulant of ptyalin present in saliva which helps in digestion. Production of oleoresin has got various pharmaceutical uses. Chilly seed oil is an edible by product. Chillies have high amount of vitamin C and carotene. It have culinary advantages. Capsaicin is effective of arthritis pain and headaches. Processing flow chart of chilly: Harvesting and Curing ↓ Drying ↓ Grading ↓ Packaging ↓ Transportation ↓ Storage Processing steps of chilly : 1). Harvesting and Curing: Ripe fruits are plucked and harvested, heaping for 3-4 days for uniform ripening and color development. 2). Drying : i) Sun drying: Chillies are spread on ground or concrete floor and sun-dried and moisture is decreased 70-80 % to 10 % for good storage life and also retain red color. Duration of drying is 3-15 days. Some times unfavorable conditions like cloudy weather also brings about discoloration. ii) Improved sun drying: This method is invented by CFTRI. This process use a specific emulsion known as ‘DIP SOL’. It reduces the the drying time to 1 week. DIP SOL is a water based emulsion. Preparation of DIP SOL emulsion : For 100 kg of chillies , Potassium Carbonate (K2CO3) – 2.5% Refined ground nut oil – 1 kg Gum accasia – 0.1 kg BHA – 0.001 kg iii) Mechanical drying: It gives quality consistent, product is produced by first washing and dried in trays as whole pods. Tunnel dryer and stainless steel continues belt dryer exposing the chillies to force the current air at 50-60°C, M.C reduces to 7-8% in 12 hrs. 3). Grading : Graded on the basis of color and size, moisture and stalk of the pods. Damaged discolored and immature pods are removed. Other method of gradings are based on : a). Seed and fruit ratio b). Seed size and hardness c). Thickness of the skin of the pod d). Pungency 4). Packaging : Chillies are packed in gunny bags and rarely in bamboo baskets. Packing material used and the capacity of packages are different in different places. Chillies are also packed in polythene bags. 5) Transportation : Transport of chillies are broadly divided into 2 phases: i) From farm to assembling market. ii) From assembling market to consuming market. In first phase, the producers and village merchants are involved and in the second phase wholesalers and processors are involved. 6) Storage : Storage is very important component of marketing which has a direct impact on the prices. Adequate storage facilities will help in effectively distributing and marketing at all times and in all places. Storage function thus responsible for balancing supply and demand situation. The storage of chiller takeplace in open spaces, shelves, containers, underground storage chamber.