An economic analysis of farmer producer organizations in Garhwal division of Uttarakhand
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Date
2021-12
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G.B. Pant University of Agriculture and Technology, Pantnagar - 263145 (Uttarakhand)
Abstract
Agriculture is the main occupation in developing countries like India, where the majority of rural peoples depend on it for livelihood and income. To overcome the problems and multifold the income of these small and marginal farmers, the government has launched a new form of collective organization called Farmers Producer Organization. In Uttarakhand, average land holding constitutes around 1.15 hectare. There are 98.2 millions marginal farms holding and 24.8 millions are small farm holders. One of the major challenges is aggregating small and marginal farmers to enable them to integrate with agricultural market. Thus produce grown in these land holding constitute small marketable surplus. The present study was based on 90 samples of FPOs selected from two districts viz. Dehradun and Pauri Garhwal of the Garhwal Division. The study was aimed to achieve three objectives viz., to examine the business performance of selected farmer producer organizations, to analyze the marketing efficiency of farmer producer organizations and to identify the constraints faced by members of Farmer Producer Organizations and various non-members. Balance sheet analysis revealed that the current ratio and acid test ratio of selected six FPOs was more than one which indicate the sound financial status. The debt- asset ratio of all the six FPOs was good enough so that the debts can be paid off by selling its assets in case of liquidation. The net capital ratio and equity to asset value ratio of all six FPOs were more than one which means the fund of lenders is safe and also highlights the profit of the organization. Income statement analysis revealed that the efficiency ratio and profitability ratio of selected six FPOs was less than one which indicates that organization was able to meet out its expenses. The ratio within one indicates that the organization spent less than what it earned in carrying out its operation .Among the six FPOs, the SBSS had highest marketing efficiency (2.7) followed by BDFPCL (1.41), BBSS (1.11), KUSSS (1.08), PSS (1.06) and HKSS (0.99). Channel II was more efficient than channel I as there were less number of intermediaries in channel II. The Garrett’s ranking analysis depicts that major constraints faced by members of FPO was lack of proper infrastructure, unawareness of credit facilities, price fluctuations over the year where untimely, costly and poor quality inputs and lack of awareness about grading and packaging were minor constraints. The important constraints faced by non- members were delay in payment, exploitation by middle men , lack of market information, lack of facilities of transportation , poor market linkage , lower price for produce and distress sale and lack of extension facilities. Suitable recommendations from the study were FPO farmers should be trained about strategic decisions, awareness and knowledge about management and marketing skills, because small and marginal farmers were primary producers they need to learn modern marketing tactics.