COMPARATIVE ANALYSIS OF PUBLIC AND PRIVATE FOOD GRAIN WAREHOUSING IN VIDARBHA REGION OF MAHARSHTRA

MAHESH M. KADAM; SHARAD SACHAN; R.G.DESHMUKH

Volume : VI, Issue : XII, December - 2016

COMPARATIVE ANALYSIS OF PUBLIC AND PRIVATE FOOD GRAIN WAREHOUSING IN VIDARBHA REGION OF MAHARSHTRA

Mahesh M. Kadam, Sharad Sachan, R. G. Deshmukh

Abstract :

Warehousing plays a very vital role in promoting agriculture marketing, rural banking, financing and ensuring Food Security in the country. It enables the markets to ease the pressure during harvest season and to maintain uninterrupted supply of agricultural commodities during off season. Hence, it solves the problems of glut and scarcity, which are the usual problems in agricultural marketing With a view, following objectives were undertaken for study i.e; to study the investment pattern in different types of warehouses, to analyze the profile of commodities stored in the warehouses, to evaluate the economic, technical, and financial feasibility of the warehousing and to identify the constraints and suggest the remedial measures. The primary and secondary source of data was collected so as to elicit the first hand information about the functioning of Maharashtra State Warehousing corporation and Buldhana Urban Warehousing. The data was collected for the period from 2000–01 to 2011–12.In order to study the financial feasibility discounted cash flow technique involving internal rate of returns (IRR), benefit: cost ratio (BCR) and net present worth (NPW) was used. Stochastic Frontier Model was used to calculate economic performance of warehousing. The following conclusions were obtain from the study which were, Investment pattern in Public Warehouses, shows that Fixed Cost comprises (60 per cent) followed by (39.17 per cent) variable cost.Investment pattern in Private Warehouses, shows that Fixed Cost comprises (73.55 per cent) followed by (26.45) per cent variable cost Economic Viability shows that Public Warehouse has Net Present Worth Rs. 457360.4, followed by B:C Ratio 1.12 and Internal Rate of return 56.7 per cent.Economic Viability shows that Private Warehouse has Net Present worth Rs. 5561085, followed by B: C Ratio 3.02 and Internal Rate of return 43.3 per cent.Public Warehouses have profile of 50.00 per cent Rice, 38.8 per cent Wheat, 3.8 per cent Pulses, 5.4 per cent Oilseeds and 1.8 per cent other commodities stored in it.Private Warehouses have profile of 44.87 per cent Rice, 31.54 per cent Wheat, 8.11 per cent Pulses, 7.34 per cent Oilseeds and 6.34 per cent other commodities stored in it.In Public Warehouses. The mean efficiency in Private warehouses is about 51 per cent which inculcate that 49 per cent of the above inputs were not efficiently utilised in overall. High storage charges, Small quantity, Delay in getting storage space, Price fluctuations and Lack of awareness are major constraints faced by farmers through Public and Private Warehouses. P–P–P models can be used for increasing infrastructure in the era of warehousing. Warehouse receipts and Market information can be a helping hand to the farmers to get desirable returns from fluctuations in prices and awareness ignorance