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A STUDY ON PROCUREMENT PLANNING OF TURMERIC, MAIZE AND CHILLIES AND TO CONDUCT FEASIBILITY STUDY FOR ESTABLISHMENT OF SPOT EXCHANGE CENTRES IN ANDHRA PRADESH

KrishiKosh

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Title A STUDY ON PROCUREMENT PLANNING OF TURMERIC, MAIZE AND CHILLIES AND TO CONDUCT FEASIBILITY STUDY FOR ESTABLISHMENT OF SPOT EXCHANGE CENTRES IN ANDHRA PRADESH
 
Creator NAZMI, SHIFA
 
Contributor JANAIAH, ALDAS
 
Subject markets, turmeric, chillies, economics, maize, marketing, diseases, area, productivity, costs
PROCUREMENT PLANNING,TURMERIC, MAIZE, CHILLIES, SPOT EXCHANGE CENTRES
 
Description In the present scenario the major problems faced by agriculture commodities are
long supply chain, more number of intermediaries involved leading to lower price
realization by farmers, lack of inadequate infrastructure, lack of proper marketing channels,
poor technology for handling and storage. To develop active trading interest across
commodities and to solve these issues, it is necessary to have a common platform of
commodity spot exchange where demand and supply forces can act together in bringing out
the best price for any commodity. The main objective of spot exchange is to enable seller
especially farmers to have prior knowledge of both spot and future prices before deciding
when and where to sell in order to maximize incomes.
Andhra Pradesh is the leading producer of chilli, turmeric and maize and the utility
of spot exchange is high for these crops so study entitled “A study on procurement planning
of turmeric, maize and chillies and to conduct feasibility study to establishment of spot
exchange centres in Andhra Pradesh” was undertaken to study viability of launching chilli,
maize and turmeric contracts on NSEL (National Spot Exchange Limited) platform in
Andhra Pradesh. Primary data on marketing aspects, method of procurement, problems
faced during trading, quality assessment, awareness about spot trading, suggestions of
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starting chilli maize and turmeric contracts in spot exchange were collected from selected
respondents. Collected data were analysed using tabular analysis, economic analysis
techniques such as NPV (Net Present Value), IRR (Internal Rate of Returns) and BC
(Benefit-Cost) ratio were calculated for chilli, maize and turmeric. The net present worth
for procurement of chilli and turmeric is Rs. 9016547.95 and Rs. 5854085.80 for maize
appraising the profitability of these crops at 12 per cent discount factor. The benefit cost
ratio at 12 per cent discount rate was computed as 1.36:1 for chilli and turmeric and 1.65:1
for maize which indicates that it is worthwhile to establish spot exchange centres for these
commodities. The internal rate of returns was computed as 30 per cent for chilli and
turmeric and 18 per cent for maize at discount factor of 12 per cent. Computed values
depict the viability of the project to establish spot exchange centres for these commodities.
For chilli and turmeric suggested procurement centres are Karimnagar, Guntur and
Nizamabad and for maize suggested procurement centres are Nizamabad, Karimnagar,
Mahbubnagar and Warangal. Hence there is great potential for improvement in procument
channels of agri- commodities through spot exchange platform.
Keywords: NSEL (National Spot Exchange Limited), tabular analysis, NPV (Net Present
Value), IRR (Internal Rate of Returns), BC (Benefit-Cost) ratio, procurement channel.
 
Date 2016-06-08T14:05:23Z
2016-06-08T14:05:23Z
2012
 
Type Thesis
 
Identifier http://krishikosh.egranth.ac.in/handle/1/67015
 
Language en
 
Relation ;D9264
 
Format application/pdf
 
Publisher ACHARYA N. G. RANGA AGRICULTURAL UNIVERSITY