Nov , 2021, Volume : 2 Article : 5
Driving and Restraining Forces in Potato Processing of Uttar Pradesh
Author : Shruti and Madan Singh
ABSRACT
Potato production in Uttar Pradesh (15555.53 thousand MT) is the highest in the country but the farmers are not fetching remunerative prices for their produce due to low market price at the producers’ level. To improve the income at producers’ level, processing of potato will be a suitable alternative. The value-added products, i.e., chips, namkeen, papad etc. not only add profit but also increase the shelf life of produce. The article discussed about the value chain up-gradation by focussing on existing driving and restraining forces for potato processing in Modipuram. The availability of skilled labour; logistic, grading, packaging and repair and maintenance facility; direct forward marketing; banking facility; easy enterprise registering facility and family support were found as major existing driving forces for potato processing. Whereas, lack of training facility; middleman’s intervention; price fluctuation of raw potato; lack of credit information and difficulty in getting licence were the major restraining forces in potato processing.
Keywords: Potato, Value chain, driving forces and Restraining forces
Potato is used in almost any curry especially in North India. In the survey conducted under PhD research programme in 2017, it was found that the farmers sell the potato at a very low price from Rs 4 per Kg during the season and Rs 7 per Kg in off-season in villages of Modipuram district of U.P. It was observed that potato producers were in the loss because of low market price of potato at producers’ level; the farmers even could not meet the cost of production. During the survey in Modipuram, it was observed that many small and large potato processors were engaged in making value-added products like chips, namkeen, laccha, papad etc. and earning profits as well as providing employment opportunities. In India, only 6.83 per cent of potato production was used for processing during 2007-2008 whereas, at the world level the figure was about to double (13.65 %) in 2006. During 2007–08, the per capita potato processing was just 365 g (89.69% potato chips, or ‘crisps’, 9.28% potato powder/flakes and 1.03% French fries) with using 1.475 kg fresh potatoes per capita. It indicates that still, potato processing is in the infancy stage (Rana, 2011).
A study was conducted in the Modipuram district of Uttar Pradesh. The 20 potato producers and 15 potato processors were selected randomly. The objective of the study was to compare the profitability of potato production and its processing unit. Further, the entrepreneurial environment for potato processing whether favourable or not was identified through Force Field Analysis (Lewin, 1951). Under the entrepreneurial environment, the driving and restraining forces with the major dimensions i.e., Technical, Infrastructure, Market, Finance, Legal and Socio-personal factors were identified. The forces which promote potato processing are driving forces whereas those forces which limit or restrict potato processing are restraining forces.
Comparative profitability of potato processing and production unit
The comparison was done between the production unit (n=20) and processing unit (n=15) and it was found that the net return was higher for the processing unit (net return = ₹ 5710.30/q) whereas the production unit was in loss (net return = - ₹ 166/q). However, the cost incurred was 13.14 times higher for the processing unit compared to production unit. The benefit-cost ratio was higher for the processing unit (2.65) than the production unit (0.66), as the producers benefit was too low even to meet the cost of cultivation. Therefore, potato processing can be a good start-up.
Technical Dimension of Force Field Analysis
Within technical driving forces, the raw material was moderately available to potato processors like namkeen, papad, laccha making but for chips, the variety was not available locally. Sufficient skilled labour was available and access to technical information and technology was also good.
Within technical restraining forces, there was a lack of training facility, enterprise diversification support and follow ups programme. However, machine affordability was not an issue. Banding of value-added products of potato was lacking due to a greater number of small processors engaged in its processing.
Table 1. Comparative profitability of potato processing and production unit
|
Particular |
Processing unit (n=15) |
Production unit (n=20) |
|
Production cost (Rs/q) |
6334.12 |
481.99 |
|
Net return (Rs/q) |
5710.30 |
-166.04 |
|
Price Rate (Rs/q) |
11933.33 |
400.00 |
|
BC ratio |
2.65 |
0.66 |
Infrastructure Dimension of Force Field Analysis
The facility was available for logistic, grading, packaging and repair and maintenance but institutional support was poor. At the initial level, for small scale production high investment is not required. The problem regarding interrupted power supply, storage, transport and machinery availability was not observed.
Market Dimension of Force Field Analysis
The direct forward marketing was available to the potato processors but the suitable variety was not available directly to chips processors from producers. The online marketing facility was lacking as most of the processors were of small scale so didn’t have much knowledge about online marketing. Access to marketing information and distance selling was missing. Price fluctuation in processed products was rare but in fresh potato, it was observed. Middlemen existence was seen but distress sale was not realized.
Finance Dimension of Force Field Analysis
Banking facility was available. Loan and insurance facility was available but most of the processors where small scale so did not avail this facility. A special facility was available to women on subsidy. Difficulty in obtaining a subsidy was observed.
Legal Dimension of Force Field Analysis
Registering enterprise was easy but since many where small scale processors so didn’t register their enterprise. Large processors believed that registering GST was not cumbersome and GST promoted trade transparency. Digital payment has done the task easy. Small scale processors felt a high GST rate. Demonetization affected turnover and labour payment.
Socio-personal Dimension of Force Field Analysis
Family support was observed more in small scale potato processors and moderate risk-taking ability was realized. Courses related to food processing was available in the city but entrepreneurial based education was lacking. Differences based on caste and politics was not found. For those who were engaged in potato processing, the society value was observed high.
Conclusion
The potato processing is worth start-up then simply growing only potato. The value addition not only adds the price to processors but also increases the shelf life of the produce. More training and workshops should be organized to encourage processing among farmers, women and youth.
References
Horticultural statistics At a Glance. 2018. Government of India. Ministry of Agriculture & Farmers’ Welfare. Department of Agriculture, Cooperation & Farmers’ Welfare. Horticulture Statistics Division
Lewin, K. (1951). Field Theory in social science: Selected theoretical papers. New York: Harper & Row.
Rana, R.K. (2011). The Indian Potato-Processing Industry: Global Comparison and Business Prospects. Outlook on Agriculture, 40(3), 237-243.
4. Driving and Restraining Forces in Potato Processing of Uttar Pradesh_compressed.pdf
COMMENTS