FINANCIAL FEASIBILITY IN PRODUCTION, PROCESSING AND MARKETING OF MAJOR PULSES - A CASE STUDY IN BUNDELKHAND REGION OF UTTAR PRADESH
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Date
2014
Authors
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Journal ISSN
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Publisher
ACHARYA N.G. RANGA AGRICULTURAL UNIVERSITY, RAJENDRANAGAR, HYDERABAD
Abstract
Pulses are major sources of proteins among the vegetarians in India, and
complement the staple cereals in the diets with proteins, essential amino acids, vitamins
and minerals. They are known to enhance the soil fertility by fixing atmospheric
nitrogen and play a key role in improvement of physical condition of the soil.
Bundelkhand region is considered to be the pulse bowl of Uttar Pradesh as it shares
about 50% area and 45% of total pulse production of the state. (Technical Bulletin No.1,
Technologies for increasing production of Rabi Crops in Bundelkhand, National
Rainfed Area Authority). The present study entitled “Financial Feasibility in
Production, Processing and Marketing of Major Pulses - A Case Study in Bundelkhand
Region of Uttar Pradesh” was studied with the following objectives:
1. To study the trends in area, production and productivity of major pulse crops in
India as a whole, Uttar Pradesh state and Bundelkhand region of Uttar Pradesh.
2. To assess the farm level profitability in the cultivation of major pulse crops in the
study area.
3. To examine the efficiency of various marketing channels for major pulses in the
study area.
4. To examine the Investment pattern and financial feasibility of major pulse milling
units in the study area.
This study plays an important role in assessing business viability and potential of
pulse industry in India. It helps the producers as well as processors to analyze the
profitability of pulse production and feasibility of pulse industries. About 120
pulse growers and average of thirty processors were selected from three districts of
Bundelkhand region in Uttar Pradesh viz. Jhansi, Banda and Jalaun. Secondary data
on area, production and productivity of chickpea, lentil and field pea in India, Uttar
Pradesh as well as in Bundelkhand region of Uttar Pradesh was collected for a period
of ten years from 2003-04 to 2012-13, from which trends in growth rates of chickpea,
lentil and field pea production were analysed by using Compound Annual Growth
Rate (CAGR) function.
The result of the study showed the Compound Growth Rate of area, production
and productivity of chickpea in India was 3.07, 5.62 and 2.49 respectively. The
Compound Growth Rate of area, production and productivity of lentil in India was 1.86,
2.33 and -9.17 per cent respectively while the Compound Growth Rate of area,
production and productivity of field pea in India during was 5.03, 8.43 and 3.92 per cent
respectively. The Compound Growth Rate of area for chickpea, lentil and field pea in
Uttar Pradesh was -3.19, 0.45 and 2.49 per cent respectively. The Compound Growth
Rate of production for chickpea, lentil and field pea in Uttar Pradesh was -1.16, -1.07
and 6.67 per cent respectively while Compound Growth Rate of productivity for
chickpea, lentil and field pea in Uttar Pradesh was 2.07, -1.50 and 4.05 per cent
respectively . The Compound Growth Rate of area for chickpea, lentil and field pea in
Bundelkhand was -3.46, 4.96 and 0.86 per cent respectively. The Compound Growth
Rate of production for chickpea, lentil and field pea in Bundelkhand was -0.14, 3.85 and
1.16 per cent respectively while Compound Growth Rate of productivity for chickpea,
lentil and field pea in Bundelkhand was -0.37, -1.05 and 0.29 per cent respectively. The
cost of cultivation of chickpea, lentil and field pea is Rs. 15578.95, Rs. 17119.58 and
Rs. 16349.27 per acre and gross return per acre is Rs. 26505, Rs. 29750 and Rs. 28050
respectively. Thus, Benefit Cost Ratio in chickpea, lentil and field pea cultivation is
1.70, 1.74 and 1.72 respectively. Two channels of marketing were identified for
chickpea, lentil and field pea pulse marketing, which are
Channel I Producer – Commission agent – Processor – Consumer/ Exporter
Channel II Producer – Processor – Consumer/ Exporter
The producers share in consumer’s rupee in channel II is higher than channel I
since it is the shorter channel (71.07, 78.23 and 71.46 per cent for chickpea, lentil and
field pea respectively). Whereas the producers share in consumer’s rupee in channel
I for chickpea, lentil and field pea 65.70, 73.54 and 62.08 per cent respectively. The
marketing efficiency index of channel I for chickpea, lentil and field pea was 1.91, 2.77
and 1.66 respectively while marketing efficiency index in channel II for chickpea, lentil
and field pea was 2.45, 3.59 and 2.07 respectively indicating the superiority of channel
II. Average of thirty processing unit were selected, having a processing capacity of 3000
TPA (calculated considering 250 working days in a year). The BC Ratio for chickpea,
lentil and field pea were 1.02, 1.05 and 1.03 respectively. The NPV for chickpea, lentil
and field pea were 71.88 lakh, 83.16 lakh and 92.01 lakh respectively. The IRR for
chickpea, lentil and field pea were 28, 19 and 32 per cent respectively. Major problems
of producers and market intermediaries in the study area are inadequate supply of
quality certified seed and lack of storage facilities respectively. The processors are
facing the unavailability of input as the major problem during the peak season. The
study suggested an overall improvement in providing market information, quality of
produce, provision of storage facilities etc.
Description
Keywords
peas, productivity, costs, land resources, lentils, chickpeas, grain legumes, area, markets, crops, FINANCIAL, FEASIBILITY, PRODUCTION, PROCESSING, MARKETING, MAJOR, PULSES, BUNDELKHAND, UTTAR PRADESH