Performance evaluation of rubber producers society Poothrikka Ernakulam district
Loading...
Files
Date
2020
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Department of Co-operative Management, College of Co-operation Banking and Management, Vellanikkara
Abstract
India is the 5th largest producer of Natural Rubber (NR) in the world. Indian rubber plantation sector is dominated by small holdings, which account for almost 88% of the total rubber production in the country. The preponderance of small rubber growers makes the sector vulnerable to exploitation by middlemen and also difficulties in gaining access to technology and information. Lack of availability of timely and adequate credit, rapid rise in the wages of labourers and increase in the price of fertilisers were the other major problems faced by the small rubber growers. Only institutional support built upon a community basis would help empowering the framework of small farmers to manage adequate market strengths and also this would help farmers to get a realistic margin. Therefore the Rubber Board promoted the formation of small voluntary associations of small growers called Rubber Producers’ Societies (RPSs) which are free from political and bureaucratic control or intervention. This opened a new opportunity for the extension services of the Rubber Board.
The present study entitles “Performance evaluation of Rubber Producers’ Society Poothrikka, Ernakulam district” was undertaken with the objectives viz., to analyse the functions and services provided by Rubber Producers’ Society, to examine the financial performance of the society and to study the problems faced by the society.
By considering the accomplishment of thesis works amidst of COVID -19 outbreaks, Ernakulam district was purposively selected for the study. The secondary data for studying the first two objectives was collected from the annual reports for ten years (from 2008-09 to 2017-18) of the society and was analysed with the help of statistical tools such as growth index, CAGR and financial ratios. The primary data for examining the problems existing in the society was collected from president, executive committee members (6) and employees (9) of RPS Poothrikka using a structured interview schedule. The data thus collected was analysed using the tools such as growth index, Compound Annual Growth Rate, liquidity ratios, profitability ratios, activity ratios, solvency ratios, indices and percentages.
By analysing the first objective, it was found that sale of estate inputs, collection of latex from member growers, processing of RSS 1X & RSS 4 and marketing of processed sheets, implementation of Rubber Producers’ Incentive Scheme, extension services, training etc., were the major functions and services provided by the society whereas, marketing was opinioned as the major function by the executive committee members. Unpleasant weather condition, grower’s reluctance in harvesting due to persistent low prices during the last few years, high level of incidence of abnormal leaf fall disease etc., were identified as the reasons for the decline in cultivation of rubber.
The financial performance of the Rubber Producers’ Society Poothrikka gives the outcome that all the 11 ratios considered under study shows positive results. Even though the fire accident occurred in the year 2010 accounted for an increase in amount due to creditors, the society was found to be in a position to meet the claims and debt obligations in the short run, usually within one year when they become due without raising external fund. RPS Poothrikka also maintained a good profitability ratio which showed the position of society in creating enough operational profit from their assets. Since all the four activity ratios of the society were found to be good, it can be concluded that the assets of the society are being used effectively and efficiently by the management to generate maximum possible revenue. As the debt-equity ratio of the society is less than 1 for almost all years, it can be concluded that the investors (members) have more stake in the business assets.
The identified problems faced by the society were lack of nurseries, irregular supply of latex, difficulty in trading with Rubber Board’s trading companies and price fluctuations. Staff paucity & employee overburden and delayed hike in salary were the identified problems faced by the employees. The study therefore suggests that the society should make arrangements to attract more members either by encouraging members to produce good seedlings or by purchasing it from other nurseries, collect rubber sheets along with latex, conduct regular training and extension services to attract members and encourage rubber cultivation while more active members will increase the income of the society as it fetches ₹20/kg as service charge for collection and marketing. And also involving in agreement with dealers can guarantee an assured profit to member growers as well as
the society despite of the fluctuations in the market. Only with proper intervention of RPS with the help of Rubber Board on the above mentioned areas can encourage the farmers to continue the rubber cultivation despite of the price fluctuations in the market.
Description
PG