VALUE CHAIN ANALYSIS OF MAIZE IN RANGAREDDY AND MAHABOOBNAGAR DISTRICTS OF ANDHRA PRADESH

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Date
2010
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ACHARYA N.G. RANGA AGRICULTURAL UNIVERSITY RAJENDRANAGAR, HYDERABAD
Abstract
On global front, in recent past, maize gained a tremendous importance on rising demand from diversified sectors like food, feed and ethanol production. As a result since last one decade acreage under maize cultivation is continuously on increasing trend to meet the rising demand. Maize crop is grown in warm weather condition and is adaptable to wide range of climatic conditions. About 85% of the total acreage under maize is grown during rainy season because of the fact that the crop stops growing if the night temperature falls below 15.600 C. Maize is picking up in Rangareddy and Mahabubnagar districts due to the demand for maize as poultry feed and from other industries located at Hyderabad and the relative proximity of these two districts to Hyderabad. The study is under taken with following objectives Objectives 1. to study the economics of maize production in Ranga Reddy and Mahaboobnagar districts. 2. to map different value chains of maize in the study area. 3. to study value addition in maize with specific reference to Ranga Reddy and Mahaboobnagar. It was observed that only 17.78 per cent of the respondents were illiterates and remaining 82.22 per cent of the respondents were literates. Age wise classification shows the preponderance of respondents (64.44 %) upto the age group of 45 years is a good sign for resorting to acceptance of newer techniques of production and preparedness to face risks involved in farming. Most of the respondents i.e., 53.33 per cent belong to other castes.The respondents from scheduled caste were having small holdings of less than 2 hectares. Average family size of the respondents is five. It emphasizes that even in rural areas also the concept of nuclear families is encouraged which has a positive impact on the food and nutritional security. The hybrids that are used in the study area are Kargil, Pioneer, Bioseed and Kaveri. Among which pioneer and Kaveri are preferred by majority of the sample followed by Bioseed and Kargil. The reason behind this is farmers being influenced by the advertisements and demonstrations organized by the seed companies in the villages and few of them follow the recommendations of the agricultural officers. Mostly all the produce is sold to the traders/commission agents and a few farmers also give the produce on an average 10-15 per cent of the produce as kind wage to the labourers along with the labour charges. Marketable surplus for farmers in black soils is 32.93 qt out of which 29.18 qt is marketed surplus and marketable surplus is 25.65 qt and 23.25 qt is marketed surplus in case of farmers in red soil. This shows a negligible amount is used as kind wage or for house hold consumption 1-2% in some areas. Accordingly to mapping of the value chain is which is viewed in three different activities involving Poultry feed, manufaturing kurkure and popcorn for human consumption. Mapping of value chain revealed that there are three key value chain activities and participants in the study area namely, farmer, seed producing companies and seed distribution agents, fertilizer companies, input suppliers, dealers, market committees, commission agents and traders, product manufacturing processing industries, hatcheries, wholesalers and retailers, consumers and poultry growers. This poultry feed manufacturers assume the functions like buying good quantities and quality of maize, procurement raw material through direct contracts from the farmers by the way of in-formal contracts. They maintain good and efficient marketing logistics, infrastructure and distribution network. Therefore it is evident that the processors assume two three levels of vertical integration in the value chain. The net value addition carried out for one quintal maize in poultry processing is Rs. 2081. Tremendous value addition is observed in processing, that value of Rs. 2200 and Rs. 15888 per quintal in case of pop corn and kurkure. It indicates that these are important and a definite amount of total production 5 to 10 per cent can be diverted to this channel systematically.  Maize is a potential crop in the study area. The supply of inputs and establishment of effective seed delivery systems involving public and private organisations is important to keep in pace with the growth and reduce the costs incurred by the farmer and help the farmer to hope for better remuneration.  Vertical integration can be tried by assuming functions like supply of all imputs by one agency including technical support, grading and cleaning and ware housing facilities can be promoted  Contracts by way of developing backward and forward linkages with farmers and poultry growers can solve some problems, these contractual arrangements can be promoted by the intervention of marketing department and establishment of standardized procedures and certification which need to addressed immediately  Maize is a crop having complex value chain seeks establishment of commodity board to promote value addition by providing linkages of marketing.
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VALUE, CHAIN, ANALYSIS, MAIZE, RANGAREDDY, MAHABOOBNAGAR, DISTRICTS, ANDHRA PRADESH
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