This study analyzed the growth in the chilli area and its shifting pattern, seedling demand and profitability of chilli production in Karnataka, based on both primary and secondary data. The study revealed an alarming reducing trend of -37.33 per cent per annum in the chilli area in the Haveri district, indicating unstable production, and Ballari emerged as a stable producer with a 19.79 per cent growth rate per annum. The seed industry needs to supply 451.95 crores of seedlings to cater forecast area of 1.53lakh ha during 2021-22. The average gross and net income from chilli cultivation was realized to be ?253153 and 110560 per ha, respectively. In order to promote chilli in the Haveri district, there is a necessity to invest in Research and Development activities to evolve resistant cultivars against biotic and abiotic stresses.