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This study analysed the resource-use efficiency of geographical indication (GI)-tagged Guntur Sannam chilli and hybrid Teja chilli farms in Guntur District of Andhra Pradesh using a Cobb-Douglas production function and assessed constraints in chilli production using the Garrett ranking technique. The results revealed that human labour and expenditure on plant protection chemicals (PPC) were statistically significant factors affecting the yields of both Guntur Sannam and Teja chilli, whereas seedlings had a significant positive influence only on Teja chilli yield. The coefficients of determination (R²) for Guntur Sannam and Teja chilli were 0.89 and 0.87, respectively, indicating that the models explained a high proportion of the variation in chilli production. The sum of production elasticities was greater than unity for both varieties, suggesting that productivity could be improved through better coordination and management of production resources. The allocative-efficiency ratios for human labour and expenditure on PPC exceeded unity on both Guntur Sannam and Teja chilli farms. This indicated the underutilisation of these resources and suggested that yield could be increased through their greater use. Conversely, the fertiliser-efficiency ratio was less than unity on Teja chilli farms, indicating overutilisation. Among the production constraints, the high cost of human labour ranked first, with a mean score of 72.48, whereas price fluctuations ranked first among the marketing constraints, with a mean score of 70.31. Therefore, farmer education and technical support should focus on strengthening quality seedling systems, promoting integrated pest-management practices and improving collective marketing approaches. These measures could facilitate the optimisation of resource use and contribute to the sustainable production and competitiveness of chilli cultivation in Guntur District.