Arecanut Business by Cooperatives In Karnataka – A Management Perspective
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Date
2016-06
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University of Agricultural Sciences, Dharwad
Abstract
Arecanut is one of the important plantation crop. The study analysed to role of Malnad Areca Marketing Cooperative Society, Ltd, (MAMCOS) Shivamogga and Totgars’ Cooperative Sales Society Ltd., Sirsi (TSS). The study was done on secondary data of the societies abstracted from annual reports of these cooperatives for a period of 15 years from 2000-01 to 2014-15. The study found that line organizational structure was present in both TSS and MAMCOS. It might be due to less number of activities and low investment. Business performance of the societies were studied by using financial ratios. Among liquidity ratios, the average values of the acid-test ratios were above unity that is 1.42 for TSS and 1.37 for MAMCOS. Working capital turnover ratio is 2.38 for TSS and 5.58 for MAMCOS. The average net worth was 54.60 crores for TSS and 22.13 crores for MAMCOS. This indicated a sound net worth of the society. The net capital ratios were more than unity in both the societies. This clearly indicates both the societies business are under profit. The main activities of TSS were running the grocery section, agriculture requisite section, rice mill, Samrat guest house, van section and arecanut trading section. Net profit ratios shows all sections were running under profit except van section. MAMCOS undertaking the activities like arecanut trading, providing consumption loan, providing harvesting loans and giving agriculture chemicals sale. In all the sections, net profit were positive. The SWOC analysis technique was employed to study the functioning of the societies. Here four broad aspects of the working of the societies viz., strengths, weaknesses, opportunities and challenges which were analysed for these two cooperatives.