ECONOMIC ANALYSIS OF IMPACT OF FARMER PRODUCER ORGANIZATIONS IN KURNOOL DISTRICT OF ANDHRA PRADESH

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dc.contributor.advisorBHAVANI DEVI, I
dc.contributor.authorSONIYA, G. R.
dc.date.accessioned2022-05-12T10:57:20Z
dc.date.available2022-05-12T10:57:20Z
dc.date.issued2022-12-22
dc.descriptionECONOMIC ANALYSIS OF IMPACT OF FARMER PRODUCER ORGANIZATIONS IN KURNOOL DISTRICT OF ANDHRA PRADESHen_US
dc.description.abstractA FPO can be registered under several legal forms like co-operatives, producer companies and societies or public trust. The Government of Andhra Pradesh has identified Farmer Producer Organizations (FPOs) as the appropriate institutional form around which farmers would be mobilized and their collective capacity of production and marketing can be leveraged by strengthening their capacities. The present study “Economic analysis of impact of Farmer Producer Organizations in Kurnool District of Andhra Pradesh” was mainly aimed at studying the business performance of selected FPOs on marketing, processing, input availability and prices and also identification of the impediments and offer suggestions for sustainability of Farmer Producer Organizations. The primary data were obtained from 120 beneficiaries of FPOs and 60 non-beneficiaries and also secondary data were obtained from the selected 13 FPOs (5 under APRIGP, 4 under NABARD and 4 under private sector) for the period of 2017-18 and 2018-19. The techniques used in the study for analysis were ratio analysis, tabular analysis, logistic regression analysis and Garrett’s ranking technique. The results revealed that the overall liquidity position of all the 13 FPOs under three organizations over the two years was average. This indicated that there was a need for improvement of working capital management of the FPOs in Kurnool district of Andhra Pradesh. The overall solvency position of all the FPOs was average. All the 13 FPOs had debt in their capital structure. This indicated that the FPOs were willing to take risk of defaulting to their creditors or long-term debts were available for the FPOs in the market. The overall efficiency position of all the FPOs was good. This showed the high efficiency of management in generating sales per rupee of capital employed. The investors could do their investment in the FPOs, used their working capital more efficiently in order to improve their working capital ratio. The overall profitability position of all the FPOs was average except private FPOs. This showed the beneficiaries under private were not getting the sufficient returns for the investment they made. The FPOs under private authority could either try to improve the profitability by injecting more capital or try to reduce the operating and non-operating expenses. The second option xiv was that the beneficiaries could find other avenues for their investment as their objective of the investment was not fulfilled. The results of the tabular analysis revealed that most of the beneficiaries sold the produce immediately after harvest than non-beneficiaries. The receipt of payment within a month was opined by 61.66 per cent of the beneficiaries, while 5 per cent beneficiaries opined that payment was received immediately. In the case of non-beneficiaries, 28.33 per cent opined that payment was received immediately after the sale of the produce to the local traders. Majority (90 per cent) of beneficiaries expressed that payment was received in the form of account transfer whereas 36.66 per cent non-beneficiaries respondents received the payment in the form of cheques. Majority (75.83%) beneficiaries sold their produce to the FPOs while 46.66 per cent of non-beneficiaries disposed their produce to local traders at a market price. The study revealed that the impact of FPOs on inputs availed by the beneficiaries was higher than non-beneficiaries. Beneficiaries had benefited highest in the case of inputs availed like seeds, fertilizers, pesticides and plant protection chemicals by saving in the cost to the maximum extent. There was less savings in the case of non-beneficiaries. The study also revealed that the impact of FPOs on price realised from the sale of output of different crops by the beneficiaries was higher than non-beneficiaries. The analysis indicated that beneficiaries reaped more benefits from sale of their produce to the FPO as compared to that of nonbeneficiaries. Binary logistic regression was employed to analyse the impact of farmer producer organizations on beneficiaries and non-beneficiaries based on the marketing, processing, input availability and prices services provided by the FPOs. The findings of the results indicated that the results of chi-square test showed marketing, processing, input availability and prices had a statistically significant relationship with beneficiaries. Cox and Snell R square indicated that 70.4% of the variation in impact of FPOs on beneficiaries was explained by categorical independent variables (marketing, processing, input availability and prices). The results also indicated that source of finance, procurement of output, market information, storage services, transport services, credit sources for marketing, processing services, input services, timely availability of inputs, credit source for inputs, FPOs collaboration with departments for inputs, price paid for purchase of inputs, selling price, quality of produce and quantity of produce were statistically significant. The beneficiaries faced problems due to lack of financial services, delay in payment, far off location of procurement centre, lack of market information, announcement of procurement price, lack of extension services, transportation and improper management of the FPOs. The sample FPOs faced various problems like dependence on external sources of finance and insufficient capital accumulation. Other constraints faced by them were poor infrastructure, lack of trained staff, Illiteracy and lack of awareness on digital facilities among farmers, lack of government support etc. The suggestions given for improving the functioning of FPO were awareness among the farmers by the scientists, financial support from the government, credit and input provisions to the farmers, providing infrastructure and storage facilities and reducing the transportation cost.en_US
dc.identifier.otherd6130
dc.identifier.urihttps://krishikosh.egranth.ac.in/handle/1/5810184680
dc.keywordsECONOMIC ANALYSIS, IMPACT , FARMER PRODUCER ORGANIZATIONSen_US
dc.language.isoEnglishen_US
dc.pages211en_US
dc.publisherAcharya N.G. Ranga Agricultural University, Gunturen_US
dc.subAgricultural Economicsen_US
dc.themeECONOMIC ANALYSIS OF IMPACT OF FARMER PRODUCER ORGANIZATIONS IN KURNOOL DISTRICT OF ANDHRA PRADESHen_US
dc.these.typeM.Scen_US
dc.titleECONOMIC ANALYSIS OF IMPACT OF FARMER PRODUCER ORGANIZATIONS IN KURNOOL DISTRICT OF ANDHRA PRADESHen_US
dc.typeThesisen_US
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