Record Details

GROWTH AND BUSINESS VIABILITY OF COLD STORAGE UNITS IN GUNTUR DISTRICT OF ANDHRA PRADESH

KrishiKosh

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Title GROWTH AND BUSINESS VIABILITY OF COLD STORAGE UNITS IN GUNTUR DISTRICT OF ANDHRA PRADESH
 
Creator CHAITANYA BHAVANI
 
Contributor SEEMA
 
Subject storage, cold storage, costs, productivity, storage structures, investment, physical control, biological development, area, marketing
GROWTH, BUSINESS, VIABILITY, GUNTUR DISTRICT, ANDHRA PRADESH
 
Description A cold storage is a place where various items such as vegetables, fruits, medicines,
meat etc. are stored so as to protect them from getting spoiled and thereby prolong their
preservation period. Cold storage industry is popularly known as agricultural service
oriented industry which serves as a vital link between the production and consumption of
agricultural produce. The importance of cold storage is to achieve the twin objectives of
price stabilization and fair prices to producers and consumers. The overall growth of the
agricultural sector and its output has a close relationship with the level of investment made
in agricultural infrastructure. The chilli crop is one of the prominent crops in Guntur district
and is also vulnerable to the price fluctuations. Therefore, farmers in order to maintain the
quality of the produce without any spoilage, stock the chillies in cold storages. The present
study entitled “Growth and business viability of cold storage units in Guntur district of
Andhra Pradesh” was studied with following objectives: 1. To study the growth in cold storage units in the Guntur district and in Andhra Pradesh.
2. To study the investment pattern, cost and returns, and financial feasibility of selected
units.
3. To examine the types and pattern of different commodities stored in the selected units.
4. To analyze benefits accrued to the chilli farmers by stocking produce in the cold
storages.
5. To identify the constraints faced by cold storage entrepreneurs and the users in the
selected area.
The research focuses on the growth in the number of cold storage units in the study
area. This study plays an important role in assessing business viability and helps the
investor to analyze feasibility of establishing cold storage unit. The study included
estimation of investment cost of establishment, cost and returns and financial feasibility of
cold storage units. The data was primarily collected through personal interview with the
help of a pre-tested questionnaire designed especially for the purpose. Total cost for
establishing and maintenance cost for cold storage and total returns were analyzed.The data
was compiled, tabulated and analyzed using Net Present Value (NPV), Internal Rate of
Return (IRR) and Benefit-Cost-Ratio (BCR). Pattern of storage of commodities was
recorded in percentages. Benefits accrued to the farmers have been calculated. Constraints
faced by the cold storage units, farmers and traders are analyzed through Garrett ranking
and Likert scaling techniques.
The compound growth rates for number of cold storages in Guntur district and
Andhra Pradesh over period 2003-2013 were found to be 17.064 and 7.781. The result of
the study showed that there is more investment scope for cold storage units with positive
Net Present Value i.e., Rs.23264985.48, Rs.21118718.12 and Rs.13999132.86 for large,
medium and small cold storage units respectively. Benefit Cost Ratio was 1.61 for large
cold storage, 1.80 for medium cold storage units and 1.55 for small cold storage units. The
Internal Rate of Return being 110 per cent, 125 per cent and 104 per cent for large, medium
and small cold storage units respectively.
Chilli and turmeric are the major crops being stored in the cold storages in Guntur
district. Chilli was stored in 18.7 lakh bags in the year 2013-14, turmeric was stored in 0.59
lakh bags (each bag is equal to 50 kgs). The profit per bag to the farmers by storing in cold
storage was Rs.101.50. The major problem faced by the cold storage units are high cost of
storage, heavy capital investment, fire risk and heavy competition as major problems.
Farmers are facing the issues of delay in getting cold storage space, high cost of storage,
risk of damage in utilizing the cold storage services. Traders face the problems of high cost
of storage, price fluctuations of produce, inadequate and delay in getting the cold storage
space.
Keywords: Cold storage units, Chilli, Net Present Value (NPV), Internal Rate of Return
(IRR), Benefit Cost Ratio(BCR), Garrett ranking, Likert scaling.
 
Date 2016-09-12T13:54:16Z
2016-09-12T13:54:16Z
2014
 
Type Thesis
 
Identifier http://krishikosh.egranth.ac.in/handle/1/76438
 
Language en
 
Relation D9700;
 
Format application/pdf
 
Publisher ACHARYA N.G. RANGA AGRICULTURAL UNIVERSITY, RAJENDRANAGAR, HYDERABAD