Economic analysis of farmer-producer –organization (FPO): A case study of Abhinav farmers group, Narayangaon, Pune

Abstract

Abhinav farmers group is the organization, which helps in linking small and marginal grape growers to export market. An attempt has been made to measure the economic performance of the project. Standard cost concept including was employed to estimate the cost of cultivation of grapes. The financial feasibility of investment in Abhinav Farmers Group was worked out by using different financial tools and ratios. The results revealed that average per hectare yield obtained was 204.64 and 211.31 quintals, respectively for member and non member growers while, the B: C ratio was 1.42 and 1.30, respectively which indicated that it was a profitable enterprise. The payback period and benefit cost ratio of Abhinav group was 18.4 years and 1.32 at 30 per cent of discount rate, respectively. The internal rate of return and break even quantity of export of grape for Abhinav farmers group was 32.10 per cent and 65.56 tones, respectively. More incidences of pest and disease, high cost of fertilizer and non-availability of labour were the major problems faced. Farmers should come together to form such type of FPO and government may support such investments.