Abstract: India Land of spices is the major producer and exporter of chillies. An efficient supply chain ensuring remunerative prices to the producers for their products and to deliver maximum satisfaction to the end consumers for the price they pay. Two major supply chains have been identified, Which reveals that supply chain II is more efficient than the supply chain I because more value goods are delivered to consumer from producer at low marketing costs. The study shows that farmers who bring good quality chillies to market prefer Supply chain-II to supply chain-I. But farmers who bring poor quality, discolored chillies, are preferring supply chain-I. Delay in payment after sale, problems in fare price evolution process, collection of excess commission and availability of loan through bank on produce important problems that farmers are facing in this market.