An economic analysis of MSME in Udham Singh nagar district of Uttarakhand: A case of frozen pea units
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Date
2019-07
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G.B. Pant University of Agriculture and Technology, Pantnagar - 263145 (Uttarakhand)
Abstract
Vegetable pea (Pisum sativum L.) is an important horticultural crop ranking fourth in world legume production. India ranks second in the world production of green peas sharing 24.22 per cent in total production. Uttarakhand ranks ninth in the production of green pea among all
states with the production of 83.01 thousand tonnes contributing 1.73 per cent share in total production. MSMEs in Uttarakhand are showing an increasing trend in its establishment in the last decade. This sector is dominated by flour mills, rice mills and dairy enterprises. The study
conducted in Udham Singh Nagar district of Uttarakhand was based on the data collected from a sample of 16 units from the total number of 52 frozen pea units registered under MSME for the year 2018. The study is aimed at identifying financial performance of the units, factors
influencing performance of entrepreneur, factors affecting processing and marketing of frozen pea and the constraints associated with the growth of frozen pea units. The results revealed that out of 16 units; 8 units (50.00%) were established before 2000, 5 units (31.75%) were established during 2000-2010 and 3 units (18.75%) were established after 2010. The input-output ratio of micro unit was found to be 1.01 and that for small and medium was 1.37 and 1.42 respectively, which reflects the profitability of units. The fixed capital ratio (Micro-0.12, Small-0.36, and Medium-0.39), operating ratio (Micro-0.47, Small-0.55, and Medium-0.63) and gross ratio (Micro-0.59, Small-0.69, and Medium-0.72) were found to be minimum which reflects that the units are capital efficient in use. The break even analysis reflects that micro enterprises have the breakeven point production of 54.80 quintal and that for small and medium enterprises are 498.84 quintals and 805.38 quintals respectively. It is clear that all the units are performing at profitable level as their actual production is greater than their breakeven point of production. Multinomial logistic analysis reflects that year of schooling, training and experience of the entrepreneurs has significant association with performance level of the entrepreneurs. But gender, family size, age of the entrepreneur and location of the unit has no significant association with performance of entrepreneurs. From the Kendall’s Coefficient of Concordance to see the agreement in ranking the constraints associated with processing and marketing of frozen pea it is revealed that poor storage and poor technology & managerial skill is the major constraint in processing of frozen pea. Inadequate market information and Nonavailability of graded & good quality of raw material are also among major constraints. Z-Score analysis done to identify constraints with special reference to infrastructural, financial and marketing aspects indicates that Lack of Cold storage, Lack of Quality testing laboratory, Poor cooperation from the staff, Problem in packaging and labeling, Advertising, unavailability of refrigerated van, high rate of interest were very serious problems as reported by the entrepreneurs. Lack of institutional credit, poor market research and seasonal demand were the least affecting problems.
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