The present study was based on information collected from 50 chilli growers, 12 retailers, and eight wholesalers from the Mokokchung district of Nagaland in the crop year 2012-13 through a pre-tested well designed questionnaire. Purposively, the paper intended to discover the surplus, cost margin, and price spread of chilli production and marketing in Longsa village. The study revealed that after holding 9.5% for domestic prupose, producers were lfet with 90.5% as marketable surplus of which the actual marketed surplus was 86.33% due to 4.17% loss in spoilage and wastage. Regression coefficient with and without the dummy factor showed that area and production were two major determinants having a positive impact on marketed surplus at the 1% probability level of significance. Furthermore, it was observed that a majority of the farmer-