Deepak Shah

Managing Fisheries Development in Maharashtra

Maharashtra has 720 km. of coastline with the continental shelf area of 111512 sq. km. There are as many as 32 inland varieties of fish produced in this state. Among these varieties, shrimps, prawns, harpodon neherias, ribbon fish, otalithes, pomfrets, anchoviella, mackeral and cattle fish put together account for over 70 per cent share in total inland fish production of Maharashtra. Brihan Mumbai and Thane are the only two major regions of the state accounting for bulk of the total inland fish production. Though Maharashtra accounts for a significant share in total marine fish production of India, her share in total fish production of India has declined over the past two decades mainly due to a sharp decline in her share in total marine fish production of India. The major problem faced by the marine fisheries of Maharashtra is relating to depletion of resources due to illegal presence of foreign vessels and vessels belonging to other states, which appeared to have created pressure on the coast line. As a result, the marine fish production of Maharashtra has grown at very low pace during the last two decades. In order to tackle this problem, there is need for the Government of India to introduce zonalisation of coast line in the National Fishing Policy. This will certainly help in checking the depletion of marine resources. In fact, the present fishing fleet of the state is not capable of exploiting the deep sea resources. It is to be further noted that there has been decline in inland water spread area and numerical strength of fish curing yards in the state. The number of fishery schools in the state has also stagnated over the last two decades. These are certainly disturbing features of the fisheries sector of Maharashtra. Although in order to develop fisheries sector, the department of fisheries in the state is conducting various training programme relating to carp fish seed production, fresh water prawn culture, integrated fish farming and management of aquarium, etc., there is also need to educate fishermen with respect to dissemination of information relating to modern fishing techniques and efficient marketing of fish catch. Equally important is the need for more innovative technologies in this sector, diffusion of developed technology by extension workers and adoption by the clients. Education of fishermen about modern fishing techniques has significant impact on adoption of recommended fish culture practices by the farmers. Further, extension and mass media participation have strong positive relationship with adoption of fish culture practices. Nonetheless, inadequate infrastructure and flow of information technology are the major barriers for better market integration in the existing marine fish markets of India.

Rural Credit Delivery System in Maharashtra: Some Emerging Issues

An investigation into rural credit delivery system in Maharashtra shows slower growth in institutional finances through commercial banks, credit cooperatives, RRBs and LDBs, particularly during the decade of 1991-2000, which is mainly due to adverse environment created by the financial sector reforms. Due to unfavorable policy framework. the entire rural credit delivery system is reduced to a moribund state. High transaction costs and poor repayment performance are the twin root causes of the moribund slate of rural credit delivery system. With a view to revive the agricultural credit delivery system, there is need to adopt innovative approaches like linking of Self-Help Groups (SHGs) and Non-Government Organizations (NGOs) with mainstream financial institutions. The revival of rural credit delivery system of Maharashtra also depends on strategies that are required for tackling issues such as sustainability and viability, operational efficiency, recovery performance, small farmer coverage and balanced sectoral development of the state.

National Food Security Mission for Pulse Crops in India: Technology Adoption and Marketing Issues

The study showed positive impact of NFSM programme on pulses crops cultivation in the state of Maharashtra since not only the per household quantity of mung and gram crop production as well as their marketing increased after the implementation of the programme but the prices of these pulse crops were substantially high during this period as against the pre-implementation of the programme. Not only this, the quantum of production, marketing and prices of pulses crops were higher on the sampled farms belonging to the NFSM district of Amravati as against the non-NFSM district of Beed. The plausible reasons for rise in production and marketing of major pulse crops could be traced in rise in yield levels, higher prices on offer for pulses, adoption of improved varieties of seeds in pulses crops cultivation, area under improved varieties, higher adoption of recommended practices such as sowing, seed and other practices, including application of organic manure, chemical fertilizers, etc., assistance received under NFSM-pulses programme viz. improved varieties of seeds, assistance on Integrated Nutrient Management (INM) - micronutrients/line/gypsum, etc., assistance on Integrated Pest Management (IPM) - micronutrients/line/gypsum IPM, provision of equipment like seed drills, pumpsets, sprinklers, participation of farmers in various training programmes, reasonably assured market for the pulses produce, etc. It is to be further noted that regulated market, village market and commission agents were the major marketing agencies through which pulse crops were diverted in the domestic market in the case of NFSM district of Amravati. On the other hand, the producers in the non-NFSM district of Beed depended chiefly on regulated market and to a smaller extent on commission agents for this purpose. Since the prices offered by the regulated market and village markets were reasonably high, the framers belonging to the NFSM district of Amravati depended on these channels for the marketing of their pulse crops produce. In fact, the positive impact of the programme has led the State to include all 33 districts from 2010-11. However, such impact assessment would be more meaningful if 3-5 years period is considered after the initiation of the programme. This is concomitant from the fact that though study shows reasonably higher production and marketing of pulses crop as well as their higher prices in 2008-09, a reason for this could be partly attributed to favourable rainfall during this year.

Synthesis of Agribusiness Success Models Under Co-Operative and Private Sector in India

The present study attempts to address issues relating to supply chain management of Indian dairy sector with focus on both cooperative and private sector. Supply chain management is the most comprehensive approach since it integrates all the stakeholders in the system to make the product or the service available at least cost and with maximum customer satisfaction. In dairy sector, supply chain consists of coordination of production, procurement, processing and distribution system. Amul supply chain model under cooperative sector is a three-tiered structure with the dairy cooperative societies at the village level federated under a milk union at the district level and a federation of member unions at the state level. It eliminates middlemen and directly engages farmer with the processor. The model has linked rural dairy producers to urban consumers through dairy cooperatives, trucking networks, chilling plants and processing plants. The milk grid model is instrumental in establishing the Indian dairy industry as an organized sector with efficient supply chains from production to consumption. However, dairy cooperatives have been facing increasing competition from private sectors, both in procurement and retailing of milk. The turnover of Amul is much lower than a large MNC dairy company like Nestle, which uses the Milk District model for its agro-industrial activity in India. The Companys activities in India have facilitated direct and indirect employment and provides livelihood to about one million people including farmers, suppliers of packaging materials, services and other goods. In the private sector, Reliance Fresh has also been actively involved in supply chain management of milk in India. In order to ensure sustained supply, it not only extends low-interest loans to farmers but also provides advices to them on business development, livestock insurance, and other technical advisory services. These private sector players involved in the supply chain management of milk have capability to handle larger volumes, expand reach, balance costs and address the demographic variations. They have also motivated dairy producers and others involved in the supply chain to invest and increase their earnings from dairying. Since efficient supply chain management involves adequate planning, implementation and control of operations, long term profitability and sustainability of cooperative and private sector players will depend on how their supply chain is realigned into efficient, agile and adaptable network.

Institutional Reforms in India and Dwindling Viability of Primary Cooperative Credit Societies

The present investigation was conducted in Kolhapur district of Maharashtra. The study showed a reduction in the operational efficiency of the selected PACS during the post-economic reform period as against the pre-economic reform period. The operational efficiency was measured in respect of various liquidity ratio, profitability ratios and financial leverage ratios. Not only the selected societies showed a decline in their current ratio, rate of return on assets, return on owner’s equity and marginal efficiency of capital (MEC) but also higher dependency on lender’s capital for their finances. This dependency was seen to be higher in the case of ‘A’ graded society. Nonetheless, ‘A’ graded society showed an improvement in its permanent capital during the latter period as against the former period. On the other hand, permanent capital position of ‘B’ graded society had declined during the latter period. Further, in the case of ‘A’ graded society there was not much improvement in the net worth, and in fact the share of net worth in its total liability had declined in the post-economic reform period. The declining share of net worth had caused an increase in debt-asset ratio of this society during the latter period as against the former period. In fact, among various ratios, the most important ratio estimated in this study was the return on owner’s equity. The estimated return on owner’s equity of the selected societies were seen to fall sharply during the post-economic reform period. Since the return on owner’s equity is a function of as to how efficiently a firm manages its assets, the net profit margin on sales and the degree of financial leverage, a reduction in return on equity of the selected societies could, therefore, be considered as a sign of reduction in the efficiency of the societies in managing their assets and liabilities, and also income and expenditure pattern during the latter period as against the former period.

Collective Action-Leadership Nexus of Multipurpose Agro-Processing Marketing Institutions: A Cooperative Innovation

The fruits and vegetable (F&Vs) marketing societies in general and PCMS in particular have performed reasonably well in Maharashtra during the past two decades, if certain deficiencies in their operation are set aside. There could be several factors behind the success of these societies. The factors such as higher literacy and enterprising nature of farmers, flow of efficient and dedicated leadership, an environment conducive to production, infrastructure facilities, facilities extended by NABARD and other financial institutions, government support, etc., might have played a crucial role in inducing these societies to perform well in the state of Maharashtra. However, since the F&Vs societies operating in Maharashtra have also shown a falling trend in their amount of extension of loan and its recovery, and also in respect of higher amount of losses in proportion to profit, efforts should be made to rectify these deficiencies in the functioning of these societies dealing with the marketing of high value crops. Some minor remedial measures and strategies framed or initiated by these marketing societies, particularly in respect of recovery of their loan advances, will certainly further improve the efficiency and functioning of these societies in the future. Government support in this respect will have a catalytic effect in improving the overall efficacy and efficiency, as well as functioning, of various PCMS operating in Maharashtra.

Assessing Success of Multi-Purpose Cooperatives in India

In view of deficiencies in co-operative marketing network and recognizing the significance of various emerging problems and issues facing the co-operative marketing system, the present study, carried out in the state of Maharashtra of India, has its foci on evaluating the functional dimensions, management efficiency and strengths of a multipurpose agro-processing marketing cooperative society showing success. The performance evaluation is done for Deogad Mango Growers’ Co-operative Sale Purchase Society (DMGSS), which is located in Sindhudurg district of Maharashtra. Though it mainly deals with the marketing of mango, its functional dimensions also encompass input marketing and various other welfare activities. The evaluation of DMGSS has revealed several reasons for its efficient functioning. The major reasons that weighed in favour of the functioning of the society were timely delivery of inputs to the farmer members, reasonable rates of fertilizer, remunerative prices for the farmers’ produce, fair weighing practices followed by the society, provision of finances to the members for meeting expenses towards electricity bill, labour payment, purchase of land, illness, marriage, etc. In addition to these reasons, the existence of interest-cum-entrepreneurial groups in extending dedicated and efficient leadership was the main factor that weighed in favour of efficient functioning of the society. The DMGSS has shown autonomy/independence in its functioning and shows, by and large, perfect knowledge about the market forces and its business activities in accordance to the market situation. The roles of various members, non-members, employees, board, higher-tier bodies and outside suppliers and their influence in this respect are quite high in this case of DMGSS. The DMGSS is also able to generate allies for lobbing to safeguard as well as promoting its own interests and the interests of its members. The functional dimensions of DMGSS clearly underscore the fact that marketing management efficiency of the society is very high due to several positive features associated with it. It is quite successful not only at farm level in terms of payment of farmers’ produce and input delivery and guidance to farmers about package of practices but also with respect to final disposal of produce at the consumer point at remunerative rates due to efficient management practices followed by it.

Cooperative Institutions and Horticultural Exports In New Trade Regime

Developing countries like India should find potentiality in non- traditional exports at a time when growth in the traditional ones is foundering. At the same time, it deserves mention that the future growth in horticultural production in developing world mainly depend on future price mechanism and also on the import demand of these high value crops in various regions of the world. The production deficit of various regions in fruits and vegetables will act as engine of export growth of the same for developing nations. Import demand for fruits and vegetables has already been predicted to grow sharply in developed region of the world in the near future. This will lead to rise in export prices, especially for fruits. Production deficit of other countries and regions and a likelihood of rise in export prices of these high value crops may serve as a catalyst for significant expansion in the production of horticultural crops, particularly in developing world. India is expected to take advantage of this situation and cooperatives are likely to play a key role in shaping India’s exports. However, in order to exploit this situation cooperatives have to be developed as economically effective organizations, capable of meeting the challenges of the new, liberalized economic environment. Besides, they have to achieve full utilization of the existing infrastructural facilities with due emphasis on scaling up of the economy through expansion of production capacity and upgradation of technology.

Financial Health of Credit Cooperatives in Maharashtra: A Case of Sangli and Buldana District Central Cooperative Banks

An analysis encompassing two case studies conducted in forward and backward regions of Maharashtra (India) has shown deterioration in the financial health of central level credit cooperatives (Sangli District Central Cooperative Bank (SDCCB)) in forward region and gross inefficiency in their functioning (Buldana District Central Cooperative Bank (BDCCB)) in the backward region of the state, due mainly to their mounting NPAs or overdues’. Because of substantially high NPAs, the fixed expenses of these institutions have been adversely affected, which in turn have grossly affected the break-even levels of loan advances and deposits of these credit institutions, so much so that there has been huge gap between the break-even levels of loan advances and deposits and the actual loan advances and deposits. In the case of BDCCB, the deficit between actual and the break-even levels are so high (about 60 per cent) that it will be well-nigh impossible for it to overcome this situation. High transaction costs, poor repayment performance, and mounting NPAs are the root causes of the moribund state of rural credit delivery through these cooperatives. Further, it is to be noted that the estimated trend over the past two decades in Maharashtra shows a slower growth in institutional finances through credit cooperatives and also in their membership during the decade of economic reforms (1991-2000) as against the decade preceding it (1980-1990). On the other hand, the outstanding loans of these cooperatives have grown at much faster rate as compared to their loan advances during both pre- and post economic reform periods. The slower growth in institutional finance through credit cooperatives during the decade of 1991-2000 is mainly due to adverse environment created by the financial sector reforms. Due to unfavourable policy framework, much of the deposits of the credit cooperatives are going into investments, instead of advancing loans to the farming sector. As a result, the C-D ratios of these credit cooperatives have been adversely affected. With a view to revive agricultural credit delivery through cooperatives, the need of the hour is to adopt innovative approaches like linking of SHGs and NGOs with mainstream financial institutions, including cooperatives. Such linkages are reported to have not only reduced transaction costs but also ensured better repayment performance. In brief, in order to rejuvenate rural credit delivery system through cooperatives, the root problems facing the system, viz., high transaction cost, poor recovery performance, and NPAs, need to be tackled with more fiscal jurisprudence reserving exemplary punishment for willful defaults, especially by large farmers, and the individual cases who have borrowed credit from these institutions. In fact, insofar as rural credit delivery through credit cooperatives is concerned, the focus should be on strategies that are required for tackling issues such as sustainability and viability, operational efficiency, recovery performance, small farmer coverage and balanced sectoral development.

Working of Milk Producers' Co-Operatives in Maharashtra

The past trend of production of milk in Maharashtra State has been quite encouraging. The State started showing quantum leaps and bounds in milk production from 1987-88 onwards when its milk production was 2.66 million tons. Thereafter. within 6-7 years the States milk production figures touched 4.2 million tons. Undoubtedly, the dairy co-operative movement in the State has contributed in no small measure towards this substantial increase in the milk production. However, it seems that this movement could gain momentum only in some specified regions of the State. It is a matter of great concern that only a couple of regions (Pune and Nashik) in the State are contributing more than 50 per cent of the total milk production.