Year: 2025 | Month: September | Volume 70 | Issue 3
Business Viability and Market Linkages of Groundnut Value Added Products of Nagarkurnool FPO (Nagarkurnool) and Kashyam FPO (Wanaparthy) in Telangana
Buddolla Maheshkumar
D. Srinivasa Reddy
Ch. Srilatha and A. Meena and Boniga Mohan Uday Raj
DOI:10.46852/0424-2513.3.2025.9
Abstract:
The study evaluates the business viability and market linkages of major groundnut value-added products, including cold-pressed groundnut oil, groundnut chikki, and raw groundnut kernels. Key financial metrics such as cost, revenue, profitability, and benefit-cost (B:C) ratio are analysed to determine economic feasibility. The findings indicate that Cold-Pressed Groundnut Oil has a modest B:C ratio of 1.05, highlighting the need for improved market linkages and operational efficiencies to enhance profitability. Groundnut Chikki, despite its low investment and seasonal production, shows potential with a B:C ratio of 1.06, but higher fixed costs and limited branding impact margins.
Highlights
- All three products—cold-pressed groundnut oil, groundnut chikki, and raw groundnut kernels—show positive Benefit-Cost (B:C) ratios, indicating viability. However, profitability remains constrained due to high raw material costs, operational expenses, and limited economies of scale.
- Direct sales to consumers offer higher margins but are limited in scale, whereas wholesale and retail channels provide wider market access but reduce profit margins. Strengthening branding, expanding digital marketing, and forming partnerships can enhance market reach and profitability.
- Limited processing facilities, financial constraints, and supply chain inefficiencies hinder FPO growth. Strategic investments in machinery, working capital, and branding, along with government and institutional support, can improve sustainability and competitiveness.
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