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An Economic Appraisal of Mango Processing Plants of Chittoor District in Andhra Pradesh

KrishiKosh

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Title An Economic Appraisal of Mango Processing Plants of Chittoor District in Andhra Pradesh
 
Creator VISWANATHA REDDY. K
 
Contributor Pramod Kumar
 
Subject ---
 
Description t-7931
60
AN ECONOMIC APPRAISAL OF MANGO PROCESSING
PLANTS OF
CHITTOOR DISTRICT IN ANDHRA PRADESH
ABSTRACT
The present study was undertaken mainly to asses th
e status of mango processing plants
and economic feasibility mango processing plants in
the district.
The study revealed
during the decade of 1980s and 2000 that there was
spurt in growth of mango
processing firms. Out of the total number of firms
about 72 per cent are small scale
firms and remaining 28 per cent constitutes medium
and large firms. The quantity of
mango fruits exported from Chittoor has recorded mo
re than 2 fold increase, whereas,
in terms of value it has shown an increase of only
10 per cent. On the other hand the
mango pulp export has recorded more than 7 fold inc
rease both in quantity and value
terms. Eventhough there is marginal increase in uni
t value realization for mango pulp
the volatility in prices is very low. The processin
g industry was observed to have a
number of backward and forward linkages benefiting
the economy of the region. The
various backward linkages of mango processing indus
try are; i) producer-pre-harvest
contractor-regulated markets-processor; ii) produce
r-regulated market-processor; iii)
producer-processor; iv) distant wholesale market-pr
ocessor; v) producer-village trader-
processor; vi) producer-unregulated market-processo
r. The analysis of firm level
primary data revealed large variation in investment
, ranging from 2 crores (small firms)
to 15 crores (large frims) across firm size groups.
The ratio analysis revealed that the
small firms are more efficient than the other size
class of firms. The capital ratios
revealed that the large firms are more efficient th
an the small firms. All the three class
of firms are feasible as per both NPV and BC ratio
criteria. The small firms ranked
higher than the large firms. On the other hand the
NPV criteria showed that the large
firms rank higher than small and medium firms being
able to produce substantially
higher net present worth than the other two size cl
ass of firms. The three size classes of
firms were also found to be feasible as their IRR i
s greater than the opportunity cost of
capital. The small firms, however, rank highest and
the medium firms rank lowest as
per the IRR criteria. The small size mango process
ing plant recorded least pay back
61
period of 5.25 years and is followed by that of lar
ge firms (5.99 years) and medium
firms (6.89 years). The shorter pay back period for
mango processing plants provides an
important opportunity for entrepreneurs of the dist
rict. The analysis of constraints
faced by the mango processing industry revealed tha
t the inadequate supply of power;
high cost of credit; and inadequate supply and high
cost of labour were the major
problems of the processing firms. The other set of
problems were inadequate supply of
raw materials other than mango; wide variability in
price of pulp; low domestic
demand; and fluctuation in demand in international
market were the major constrai
 
Date 2017-01-25T10:49:20Z
2017-01-25T10:49:20Z
2008
 
Type Thesis
 
Identifier http://krishikosh.egranth.ac.in/handle/1/97504
 
Format application/pdf