A STUDY ON VALUE CHAIN ANALYSIS OF CHICKPEA IN KURNOOL DISTRICT OF ANDHRA PRADESH
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Date
2022-12-22
Authors
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Publisher
Acharya N.G. Ranga Agricultural University, Guntur
Abstract
India is one of the largest producer, largest consumer and also the largest
importer of pulses in the world. In India, chickpea is considered as major pulse
crop as it accounts for 35% of area and 44% of total pulse production. The
present investigation was aimed for analyzing the value chain of chickpea in
Kurnool district of Andhra Pradesh. Kurnool district was purposively selected for
the present study as it occupies first position in area and production of chickpea
and the top three mandals were chosen which has maximum area under
cultivation of chickpea crop and two villages from each mandal were selected.
The selected villages were Perusomala, Alvakonda from Sanjamala mandal,
Nemakal, Chippagiri from Chippagiri mandal and Burujula, Maddikera north
from Maddikera mandal as they were the highest chickpea growing villages in
the respective mandals of Kurnool district. The study is based on both primary
and secondary data. The primary data needed for the study have been collected
from 112 stakeholders selected using probability proportional cum snow ball
sampling technique from selected district duly categorized into 60 farmers, 15
commission agents / traders, seven dal millers, 15 wholesalers and 15 retailers.
The secondary data pertaining to area, production and productivity of chickpea
crop for India, Andhra Pradesh and Kurnool district was obtained from the
website www.indiastat.com as well as from the Directorate of Economics &
Statistics, Govt. of AP and Joint Directorate of Agriculture, Kurnool. The data
was analyzed to attain the stated objectives by using AGR, CAGR, Cost analysis,
Value chain mapping technique, Price spread analysis, Acharya’s modified
marketing approach and Garette ranking technique.
The trend analysis study shows an increasing trend in area, production and
productivity of chickpea crop for a period from 1991-92 to 2017-18 in India,
Andhra Pradesh and Kurnool district. The CAGR of chickpea production was
higher compared to area and productivity under chickpea crop in the study. The
reason for higher growth rate in chickpea production was mainly due to the
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positive growth rate in its area and productivity. The production of chickpea
increased more because of improvement in the yield and its interaction with area.
In the study, producers were the first value adding actors, farmers could
earn on an average of the gross return per hectare Rs. 61200 by cultivating
chickpea. Farmers sold their produce immediately after harvest in farm gate itself
at a very low price without adding any value to their produce. Awareness among
farmers for value addition was not so much pronounced in selected district. The
value chain mapping in the study area prompts existence of two major products
prepared out of chickpea viz., split dal and fried gram. There were four value
marketing chains of chickpea prevailing in the selected area. The value chain IV
was followed by a greater number of farmers (33) compared to the other chains I
(19), II (2) and III (6). The producer selected the chain IV which is more efficient
because the minimum support price offered by the central/state government for
chickpea was remunerative than prices prevailing in the market. However further
value addition done after govt. procurement could not be tracked. It is, therefore,
the producer’s share in consumer’s rupee has not been worked out particularly
for this chain. In chain- I the producer sell their produce to village trader, village
trader sold the produce to dal miller, then dal miller sold its processed products
to wholesaler, wholesaler to retailer and finally retailer handed over them to
consumer. So, here the producer’s share in consumer’s rupee was (70.09%) for
split dal and (67.14%) for fried gram. In chain- II trader cum commission agent
was involved between producer and dal miller and further it was same as in chain
–I. In this producer’s share in consumer’s rupee was (66.60%) for split dal and
(63.90%) for fried gram. In chain- III the producer sold their produce directly to
dal miller without any intermediary and further it was same as in case of chain-I
and II. Here, the producer’s share in consumer’s rupee was (72.98%) for split dal
and (69.30%) for fried gram.
Thus the price spread analysis revealed that total value added costs
incurred and margins obtained by different stakeholders were highest in chain-II
followed by chain I and III. It was because of the fact that a large number of
stakeholders were involved in chain II. The findings of the study also showed
that the producer’s share in consumer’s rupee and marketing efficiency index
were found to be higher in chain- III in case of both split dal and fried gram as
compared to the other chains I and II, where the number of stakeholders involved
in that chain were lesser. The chain III had been found to be most efficient and
suitable to the farmers in the study area.
The major constraints perceived by farmers during the production were
high cost of fertilizers & pesticides and high prevalence of pests & diseases etc.
And the major constraints perceived by farmers during marketing were low price
for the produce at the time of harvest and involvement of large number of
intermediaries in the marketing etc. The major constraints faced by commission
agents / traders in their business were price fluctuation, lesser price for the
produce and presence of unlicensed traders within the market etc. The dal millers
are facing the problem of underutilization of processing units, labour shortage
and competition from illegal traders in the market etc., as a processor.
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Competition from fellow wholesalers or retailers and price condition in market
for procurement were the major constraints faced by wholesalers and retailers in
their business.
From the present study, certain pros and cons are recognized in the value
chain of chickpea. These difficulties need to be curtailed, in order to increase the
net income to farmers and stakeholders involved in the value chain of chickpea.
Some policies and suggestions need to be advocated in order to ameliorate the
efficiency of the value chain of chickpea in the study area.
Description
A STUDY ON VALUE CHAIN ANALYSIS OF
CHICKPEA IN KURNOOL DISTRICT OF
ANDHRA PRADESH