STUDY ON MARKET COMPETITIVENESS AND FINANCIAL PATTERNS OF FARMER PRODUCER ORGANISATIONS (FPOs) IN TELANGANA AND KARNATAKA
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Date
2015
Authors
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ACHARYA N.G. RANGA AGRICULTURAL UNIVERSITY, GUNTUR
Abstract
The present study entitled “Study on Market competitiveness and Financing Patterns of Farmer Producer Organisations (FPOs) in Telangana and Karnataka” was intended to examine the value chain, market competitiveness, financial models and assessment of FPCs.
Two-stage purposive sampling technique was adopted to select the ultimate sample units. The study was undertaken in five FPCs in Telangana and Karnataka states. For the present study, Mahabubnagar district of Telangana state and Bijapur district of Karnataka were selected as these were backward districts in their respective states. Three FPCs in Telangana state and two FPCs in Karnataka state were purposively selected since these FPCs were promoted by the same promoter. Both conventional analysis and financial ratio techniques were used to analyze the data and arrive at valid conclusions.
All the specified FPCs were involved in direct marketing and handled single commodity i.e. redgram. In 2013, the maximum and minimum volume
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of produce was handled by KOFSPC (190 tonnes) and KFSPC (120 tonnes) respectively. In 2014, maximum and minimum volume of produce was handled by AFSPC (136 tonnes) and JFSPC (102 tonnes) respectively. The marketing channel of redgram currently followed by specified FPCs: Farmers – Farmer Producer Company - Traders - Miller – Wholesaler – Retailer – Consumer.
The cost incurred in marketing of redgram in channel I (Rs.2732) was higher than channel II (Rs.2463). The marketing margins earned in marketing of redgram through channel II (Rs.915) were less than channel I (Rs.948). The price spread in the case of channel I (Rs.3440) was higher than channel-II (Rs.3225). The producer’s share in consumer’s rupee (PSCR) in channel II (64.560 per cent) was more than in channel I (62.198 per cent). The marketing efficiency of channel I was 1.53 and that of channel II was 1.73. It infers that channel II was more efficient than channel I.
The prices that are arranged by the five FPCs for redgram in 2013-14 and 2014-15 for the farmer members were relatively on the higher side when compared to modal price (Tandur market in Telangana state and Gulbarga market in Karnataka state) and MSP. The leverage ratios, profitability ratios, debt ratio and earnings per share of all but one i.e. KFSPC, indicated reasonably good performance of the FPCs though they were hardly two years old.
Description
D5114
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