Economics of non-oil value chains in peanut: A case of peanut-candy and salted-peanut small-scale units in India

  • Govindaraj G
  • Jain V
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Abstract

This study was conducted to assess the extent of value-addition, employment generating potential and economics of peanut-candy and salted-peanut small-scale units in India. In the low-capacity peanut-candy units, the value-addition at the end of Stage-I (pod to kernel) was $ 2.4/q, whereas, it was $ 2.2/q in the high-capacity units. In salted-peanut units, the value-addition in the low- and high-capacity was $2.2/q and $2.3/q, respectively. In Stage-II (kernel to final product), the value-addition was high across sizes and type of the processing units. Around 525 and 635 man-days of employment/month/unit were generated by low and high-capacity peanut-candy units, respectively. The employment generation was less in salted-peanut vis-?-vis peanut-candy units due to different processing methods. The kernel alone constituted 50 to 52 per cent of the total cost in peanut-candy, and 89 per cent in salted-peanut units. The sensitivity analysis revealed that change in the kernel price directly affected the magnitude of profits. The important policy implications emerged were: if the units process the pods to obtain kernel (Stage-I) instead of procuring kernels from the market, considerable value-addition can be made, kernel price directly affects the profits and hence an appropriate mechanism like ?contract farming? would stabilise the kernel prices, majority of the units retrench labour during off-peak period due to less demand and hence diversification in processing will generate sufficient employment to retain the existing skilled employees, and appropriate policy intervention is necessary to address the capital, technology and marketing constraints of the peanut processing units.Ova studija je sprovedena kako bi se utvrdio nivo dodate vrednosti, potencijal za stvaranje radnih mesta i ekonomika malih proizvodnih jedinica za proizvodnju bombona sa kikirikijem i slanog kikirikija u Indiji. Kod proizvodnih jedinica niskog kapaciteta za proizvodnju bombona sa kikirikijem, dodata vrednost na kraju I faze (od mahune do jezgra) iznosila je $ 2,4/q, dok je kod proizvodnih jedinica visokog kapaciteta iznosila $ 2,2/q. Kod proizvodnih jedinica za proizvodnju slanog kikirikija, dodata vrednost iznosila je $2,2/q u slucaju proizvodnih jedinica niskog kapaciteta odnosno $2,3/q u slucaju proizvodnih jedinica visokog kapaciteta. U II fazi (od jezgra do finalnog proizvoda), dodata vrednost je bila visoka imajuci u vidu velicine i tipove jedinica za preradu. Proizvodne jedinice niskog odnosno visokog kapaciteta za proizvodnju bombona sa kikirikijem su generisale oko 525 odnosno 635 radnih dana radnika/mesec/proizvodna jedinica. Broj radnih mesta je bio manji u jedinicama za proizvodnju slanog kikirikija u odnosu na jedinice za proizvodnju bombona sa kikirikijem zbog razlicitih nacina prerade. Samo jezgro je cinilo 50 do 52 procenata ukupnih troskova u jedinicama za proizvodnju bombona sa kikirikijem, a 89 procenata u jedinicama za proizvodnju slanog kikirikija. Analiza osetljivosti je pokazala da promena cene jezgra direktno utice na velicinu profita. Vazne implikacije politike su se pojavile: ako proizvodne jedinice preradjuju mahune kako bi se dobila jezgra (I faza), umesto nabavke jezgra na trzistu, mogla bi se ostvariti znacajna dodata vrednost, cena jezgra direktno utice na profit, stoga bi odgovarajuci mehanizam kao sto je ?ugovorna proizvodnja? stabilizovao cenu jezgra, vecina proizvodnih jedinica bi smanjila troskove rada tokom vansezonskog perioda usled manje potraznje tako da ce diversifikacija u preradi stvoriti dovoljno radnih mesta da se zadrze postojeci obuceni radnici, i odgovarajuca politika intervencija je neophodna kako bi se resila pitanja ogranicenja kapitala, tehnologije i marketinga u proizvodnim jedinicama za preradu kikirikija.

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APA

Govindaraj, G., & Jain, V. (2011). Economics of non-oil value chains in peanut: A case of peanut-candy and salted-peanut small-scale units in India. Journal of Agricultural Sciences, Belgrade, 56(1), 37–54. https://doi.org/10.2298/jas1101037g

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