A STUDY ON ENTREPRENEURSHIP IN GROUNDNUT VALUE CHAIN IN WANAPARTHY DISTRICT OF TELANGANA
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Date
2023-02-15
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PROFFESSOR JAYASHANKAR TELANGANA STATE AGRICULTURAL UNIVERSITY
Abstract
Groundnut (Arachis hypogea) known as the “King of oilseed crops” belongs to
the family Leguminosae and has unique characteristics of being both food and
commercial crop. Groundnut contains on an average 40 percent oil and 25 percent protein
and is a rich source of calcium, iron and vitamin B complex like thiamine, riboflavin,
niacin and vitamin A. Groundnut is one of the most important oilseed crops in the world
and in India. In india, the groundnut was cultivated in the area of 55,72,000 ha with the
production of 1,02,10,000 tonnes and the productivity of 1,831 kg/ha during the year
2020-21. The major groundnut-producing states are Gujarat, Andhra Pradesh, Rajasthan,
Karnataka, Tamil Nadu and Telangana. Gujarat is leading in the area under groundnut
crop with 20,65,000 hectares, followed by Andhra Pradesh with 8,70,000 hectares.
Telangana ranks eighth in groundnut production in India with 2,44,000 tonnes during the
year 2020-21.
The present study was conducted to map the existing value chain of groundnut in
Wanaparthy district of Telangana state, to study the extent of value addition, costs
incurred and returns secured by groundnut processing, to study and analyze the current
status of FPOs working in the study area, to evolve a viable business plan for startups for
enhanced value-added produce of groundnut. The data was collected from 120 farmers
and 30 intermediaries like 17 retailers, 10 wholesalers and 3 processors of Wanaparthy
district. The analytical tools employed include Descriptive statistics and Gross margin
analysis.
The study found that the major actors involved in the value chain of groundnut in
Wanaparthy district are farmers, traders, wholesalers, retailers, processors and
consumers. The value added by farmer is Rs. 34,398/acre when sold in APMC and the
value added by farmers is Rs. 38,250/acre when sold to traders, the value added by traders
is around Rs. 2,300/qtl of groundnuts, the value added by processors is Rs.10/ltr oil, the
value added by wholesalers is around Rs. 1,000/qtl of groundnuts, the value added by
retailers is around Rs. 1,500/qtl of groundnuts. The study analyzed the costs and returns
of a groundnut oil mill in the study area and found that the processing of groundnut into
oil is profitable in the study area and proves that there is a scope for the establishment of
startups focusing on groundnut processing in the study area (Wanaparthy district).
The study has shown that there are 4 active FPOs in Wanaparthy district of
Telangana state. These FPO were formed under the Central Sector Scheme “Formation
and Promotion of 10,000 new Farmer Producer Organizations” with funding from
Government of India, formation and promotion of FPOs was done through the
Implementing Agency (IA), National Bank for Agriculture and Rural Development
(NABARD) with the support of Youth For Action and Resource Support Agency NGOs.
These FPOs are mainly concentrated on Seed production and Input marketing. The FPOs
in the study area are still in the initial stages and need to be developed more and there is
a huge scope for groundnut processing FPO in the study area.
The study revealed that there is a huge scope for a start-up based on value added
products of groundnut in the study area. This is supported by the analysis of certain areas
like market for groundnut oil, selection of location, raw material, basic machinery
required for groundnut oil extraction, finance, man power requirement and groundnut oil
extraction process and SWOT Analysis for a new groundnut oil mill in the study area.