STUDY ON ORGANISATIONAL STRUCTURE OF FARMER PRODUCER ORGANISATIONS (FPOs)

113 Pages·2015·4.6 MB·English

STUDY ON ORGANISATIONAL
STRUCTURE OF FARMER PRODUCER
ORGANISATIONS (FPOs) FOR
EFFECTIVE VALUE CHAIN ANALYSIS
- A CASE ANALYSIS OF TELANGANA
AND KARNATAKA

R.L.S. ADITYA.,

B.Sc. (CA&BM)

MASTER OF BUSINESS ADMINISTRATION
(AGRIBUSINESS MANAGEMENT)

2015
STUDY ON ORGANISATIONAL STRUCTURE
OF FARMER PRODUCER ORGANISATIONS
(FPOs) FOR EFFECTIVE VALUE CHAIN
ANALYSIS - A CASE ANALYSIS OF
TELANGANA AND KARNATAKA

BY
R.L.S. ADITYA.,
B.Sc. (CA&BM)

THESIS SUBMITTED TO THE
ACHARYA N.G. RANGA AGRICULTURAL UNIVERSITY
IN PARTIAL FULFILMENT OF THE REQUIREMENTS
FOR THE AWARD OF THE DEGREE OF

MASTER OF BUSINESS ADMINISTRATION
(AGRIBUSINESS MANAGEMENT)

CHAIRPERSON: Smt. Y. PRABHAVATHI

DEPARTMENT OF AGRIBUSINESS MANAGEMENT
SRI VENKATESWARA AGRICULTURAL COLLEGE, TIRUPATI
ACHARYA N.G. RANGA AGRICULTURAL UNIVERSITY
RAJENDRANAGAR, HYDERABAD – 500 030
2015
DECLARATION

I, R.L.S.ADITYA, hereby declare that the thesis entitled “STUDY ON
ORGANISATIONAL STRUCTURE OF FARMER PRODUCER
ORGANISATIONS (FPOs) FOR EFFECTIVE VALUE CHAIN
ANALYSIS - A CASE ANALYSIS OF TELANGANA AND
KARNATAKA” submitted to the Acharya N.G. Ranga Agricultural
University for the award of degree of Master of Business Administration
(Agribusiness Management) is the result of original research work done by me.
I also declare that no material contained in the thesis has been published earlier
in any manner.

Place : (R.L.S.ADITYA)
Date : I.D. No. TMBA/2013-06

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CERTIFICATE
Mr. R.L.S.ADITYA, has satisfactorily prosecuted the course of research
and that thesis entitled “STUDY ON ORGANISATIONAL STRUCTURE OF
FARMER PRODUCER ORGANISATIONS (FPOs) FOR EFFECTIVE
VALUE CHAIN ANALYSIS - A CASE ANALYSIS OF TELANGANA
AND KARNATAKA” submitted is the result of original research work and is of
sufficiently high standard to warrant its presentation to the examination. I also
certify that neither the thesis nor its part thereof has been previously submitted by
him for a degree of any university.

Place : (Smt. Y.PRABHAVATHI)
Chairperson
Date : Assistant Professor
Dept. of Agribusiness Management
S.V. Agricultural College
Tirupati - 517 502, A.P.

ii
CERTIFICATE

This is to certify that the thesis entitled “STUDY ON ORGANISATIONAL
STRUCTURE OF FARMER PRODUCER ORGANISATIONS (FPOs)
FOR EFFECTIVE VALUE CHAIN ANALYSIS - A CASE ANALYSIS OF
TELANGANA AND KARNATAKA” submitted in partial fulfillment of the
requirements for the award of degree of MASTER OF BUSINESS
ADMINISTRATION (AGRIBUSINESS MANAGEMENT) to the Acharya
N.G. Ranga Agricultural University, Hyderabad, is a record of the bonafide
research work carried out by Mr. R.L.S.ADITYA under our guidance and
supervision.
No part of the thesis has been submitted by the student for any other
degree or diploma. The published part and all assistance and help received
during the course of the investigations have been duly acknowledged by the
author of the thesis.
Thesis approved by the Student’s Advisory Committee:

Chairperson : Smt. Y. PRABHAVATHI
Assistant Professor
Dept. of Agribusiness Management
S.V. Agricultural College
Tirupati – 517 502, A.P. ____________

Member : Dr. N. VANI
Assistant Professor
Dept. of Agricultural Economics
S.V. Agricultural College
Tirupati – 517 502, A.P. ____________

Member : Dr. G. MOHAN NAIDU
Associate Professor
Dept. of Statistics and Mathematics
S.V. Agricultural College
Tirupati – 517 502, A.P. ____________

Date of final viva-voce:
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ACKNOWLEDGEMENTS

It is by the immense blessings of Lord Sri Venkateshwara, Lord
Vigneshwara for their grace and blessings showered on me, always
accompanied me in all endeavours and successfully achieving my goals.
But for the affection, words of encouragement, boundless love,
unflagging inspiration, interest and selfless sacrifice of my parents I would
not have been what I am today. I owe all my success to the special persons in
my life my grandfather late Sri. S. Rama Rao garu, my mother Smt. R. Naga
Ratnam, my father Sri. R. Satyanarayana and my sister Ms. R. Manasa
Jyothi Sree.
I am inexpressibly ecstatic to extend my deep sense of gratitude to
luminous educationalist and esteemed chairperson of my advisory committee
Smt. Y. Prabhavathi, Assistant Professor, Department of Agribusiness
Management, S.V. Agricultural College, Tirupati for her dexterous guidance,
illuminating suggestions and unremitting help throughout the period of study,
research and in completion of this thesis. I owe her a huge debt of gratitude
forever for all that I got from her.
I am ineffable to express my esteemed thanks to the revered member of
my advisory committee, Dr. N. Vani, Assistant Professor, Department of
Agricultural Economics, S.V. Agricultural College, Tirupati for her keen
interest, ardent support and persistent encouragement showered to me.
I sincerely accentuate my everlasting gratitude to the revered member
of my advisory committee, Dr. G. Mohan Naidu, Associate Professor, Dept.
of Statistics and Maths, Tirupati for his inspiring, meticulous and valuable
guidance during the entire period of my investigation.

I wish to express my cordial thanks to Dr. I. Bhavani Devi, Professor
and coordinator, Department of Agribusiness Management, S.V. Agricultural
College, Tirupati for her articulate criticisms, transcendent suggestions and
persistent encouragement and for providing congenial atmosphere for the
study.

I deem it my privilege in expressing fidelity to Dr. P. Raghu Ram,
retired professor and head, Department of Agricultural Economics, Tirupati
for his meticulous guidance and immense help during the entire study and
project work. I owe him a huge debt of gratitude forever for all that I got from
him.
I am inexpressibly ecstatic to extend my deep sense of gratitude
to Smt J. Rajya Lakshmi, Teaching Associate, Department of Agribusiness
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Management, S.V. Agricultural College, Tirupati for her help and guidance
during my period of study at this college.
I am ineffable to express my esteemed thanks to Dr. C. S. Sundaresan,
President, Alliance for Advanced Research and Development Initiatives
(AARDI), Chennai, Director, Institute of Agribusiness Management;
Professor, KIIT University, for his valuable suggestions, kind hearted
cooperation and meticulous guidance showered to me.
I sincerely accentuate my everlasting gratitude to the revered member
of Access livelihood consultancy India Pvt. Ltd (ALC), Sri Sharad Pant,
Project Manager, Sri Md. Waseem, Senior Executive and Sri Madhava Rao,
Senior Project Manager for their guidance, sustained help and cooperation
during my research work.
From the bottom of my heart I acknowledge the enormous help and
assistance of my uncles S.S.S.D. Prasad, S. Ramesh and N. Vivek.
Diction is not enough to express my feelings and affection with my
colleagues Kandee, Chandu, Vineel, Narayananna, Phani, Anu and Shiny
for their help during the course of my study.
I express my deep affection to my beloved friends Siri, Nagarjun,
Anil. K (chauvinist), Srikanth (Wangdoo), Sanjeev, Narendra (Kidult),
Priyanka, Sindhu and Samatha whose sparkling enthustride smile, affection
and encouragement moulded me throughout my educational career.
I derive great pleasure in expressing honest appreciation to the galaxy
of friends Sneha, Surya, Sunil, Peeru, Amar, Vedadri, K.T, Chandrasekhar,
Satish, Sidheswari, my seniors Govardhan, Bharat, Bhaskar, Arunodayam
and my junior friends Prashant, Pradeep, Vasu, Anand, Abhilash, Mallika,
Shinde, Joshi, Reshma, Haseena, Joshi(Jc), Vinood & Sunil (Vetty)
Meeriah, Praveen, Dileep, D.V., Ashok and Lokhnadham, who made my
stay at Tirupati a memorable and unforgettable one with their high degree of
friendliness and deep affection.
In finale, I thank all my well-wishers and others who helped me directly
or indirectly not placed here, for their kind cooperation and support rendered
to me.

Aditya 
…..

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LIST OF CONTENTS
Chapter
Title Page No.
No.
I INTRODUCTION 1-6
II REVIEW OF LITERATURE 7-15
III METHODOLOGY 16-23
IV RESULTS AND DISCUSSION 24-78
V SUMMARY AND CONCLUSIONS 79-85
LITERATURE CITED 86-89
APPENDICES 90-92

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LIST OF TABLES
Table Page
Title
No. No.
List of selected producer companies
3.1 17
3.2 Level of investigation at the producer member level 18
Level of investigation at the producer company management
3.3 19
level
4.1 Particulars of each farmer producer company in detail 32
Input business carried out by five FPCs in Telangana &
4.2 40
Karnataka states for the year 2014-15
Equity grant and finance availed by FPCs for the year 2014-
4.3 41
15 in Telangana & Karnataka states
Procurement details of FPCs in Telangana & Karnataka states
4.4 44
for the financial year 2014-15

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LIST OF FIGURES
Fig Page
Title
No. No.
Organisational structure of FPO
4.1 25
4.2 Equity share capital of five FPCs 33
4.3 No of Shareholders of five FPCs 34
4.4 No of FAG associated in five FPCs 35
4.5 No of RGB leaders in five FPCs 36
Forward and Backward linkages of Farmer
4.6 38
Producer Company
Educational status of HFSPC Board of Directors
4.7 50
4.8 Skill base of HFSPC Board of Directors 51
4.9 Educational status of KFSPC Board of Directors 56
4.10 Skill base of KFSPC Board of Directors 57
4.11 Educational status of AFSPC Board of Directors 62
4.12 Skill base of AFSPC Board of Directors 63
4.13 Educational status of KLFSPC Board of Directors 68
4.14 Skill base of KLFSPC Board of Directors 69
4.15 Educational status of JFSPC Board of Directors 74
4.16 Skill base of JFSPC Board of Directors 75
4.17 Capacity building of the FPC 78

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