Feasibility of Establishing the Farmer Producer Organization (FPO) on Lime in Vijayapur District

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Date
2017-06
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University of Agricultural Science, Dharwad
Abstract
The study was conducted in all five taluks (Vijayapur, Basavana Bagewadi, Indi, Sindagi, Muddebihal) of Vijayapur district. The descriptive analytical tools such as average, per cent, etc., compound annual growth rate (CAGR), discounted cash flow techniques and Garrett Ranking techniques were employed to analyse the collected data. A positive and significant annual growth in area and production of acid lime was recorded in Karnataka state. Likewise, the CAGR of area and production of acid lime was positive in case of Basavana Bagewadi, Vijayapur and Indi taluks, whereas, it was negative with respect to Sindagi and Muddebihal taluks of the selected district. The SWOT analysis for establishment of lime FPO in the study area revealed that availability of fertilizers and PPCs were the major strengths. Whereas, non-availability of storage facilities and lack of crop insurance were noted to be the weaknesses and easy market access was one of the greatest opportunities. Major threats for establishing FPO for lime in Vijayapur district include, non-acquisition of tractor, grading techniques, counting machine and high commission charges by the agents. Indi taluk of Vijayapur district was considered as a potential taluk for the establishment of lime FPO. The results of discounted cash flow techniques like NPV, BCR and IRR showed that the establishment of FPO for lime in Indi taluk would be financially feasible. In addition, the project would be feasible, even if the total revenue is decreased and the total cost increased by 2 per cent, respectively. Overall, the establishment of lime FPO in Indi taluk is found to be economically feasible. Hence, investing in FPO would definitely enhance the livelihood of small and marginal lime cultivators of the selected district and also fetch profit for the investors. The project would be supported by institutions like SFAC, NABARD and other private organizations.
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