A

PROJECT REPORT
O
N
“An Analytical study of
Cost Control & Cost
Reduction ”
A
T
“Company Name.”
B
Y
Mr. Sujal Haushiram
Sonawane.
(Year 2022-23)
Under the guidance of
PROF. PRERANA
HEGADE

Submitted to
“SAVITRIBAI
In partial fulfillment PHULE
of the requirement for the award of the degree of
PUNE UNIVERSITY”
BACHELOR OF BUSINESS ADMINISTRATION (B.B.A)

Through

PDEA’S
PROF.RAMKRISHNA MORE ARTS, COMMERCE AND SCIENCE COLLAGE,
AKURDI PUNE.
BBA- 2022-23
Certificate of the Institute

This is to certify, Mr. Sujal Haushiram Sonawane In a particular fulfilment of the requirement
for the degree of “Bachelor of Business Administration “of the University of Pune, has been
carried out under guidance and supervision of Mrs. Prerana Hegade at Prof. Ramkrishna More
Arts, Commerce, Science College Akurdi Pune, Topic entitled “An Analytical study of Cost
Control & Cost Reduction” at Name of Company Ltd" is successfully fulfilled.

Date :-
Place :- Akurdi

Prof. Prerana Hegade Prof. A.M.Tank

(Project Guide) (HOD)

External Examiner
 DECLARATION

I hereby declare that all the facts and figures including the summer project is a result of my own
research and investigation including formal analysis of the entire project work and the scene has
not been previously submitted to any examination of Savitribai Phule Pune University or any
other university.

This declaration will hold good and in my wise belief with consciousness.

Date:

Place:

Mr. Sujal Haushiram Sonawane.

SY.BBA ( FINANCE )
 ACKNOWLEDGEMENT

Before we get into the thick of the things, I would like to add a few heartfelt words
for the people who were the part of this project in numerous ways people who gave
understanding support right from the stage the basic idea was conceived.

This dissertation from a part of my two years B.B.A. programme and is in partial
fulfilment of the requirement of their in reference.

I acknowledge with the sense of reverence my gratitude towards the management

of Shri Swami Samartha Farmer Producer Company Ltd. for providing me an
opportunity to work as a trainee in their esteem organization.

I want to give a special thanks to FINANCE manager and other staff of the
company, who help me to complete the project.

I also thanks to my principal Dr. M. G. Chaskar

and my internal guide Prof. Prerana Hegade for guiding me from the time to
time.
 An Analytical
Study of
Cost Control & Cost
Reduction
 TABLE OF CONTENTS

Sr. No INDEX PAGE NO

1 Introduction (Topic Information) 2-23

2 Company Profile 24-32

3 Objectives 33-34

4 Research and Methodology 35-37

5 Data analysis and Interpretation of Farmers 38-52

6 Findings From Farmers Survey 53-55

7 Data analysis and Interpretation of Company 56-62

8 Findings From Company’s Survey 62-63

9 Conclusion 64-65

10 Suggestion 66-67

11 Bibliography 68-69
INTRODUCTION
Cost
Cost, in common usage, the monetary value of goods and services that producers
and consumers purchase. In a basic economic sense, cost is the measure of
the alternative opportunities foregone in the choice of one good or activity over
others. This fundamental cost is usually referred to as opportunity cost. For a
consumer with a fixed income, the opportunity cost of purchasing a new domestic
appliance may be, for example, the value of a vacation trip not taken. More
conventionally, cost has to do with the relationship between the value of
production inputs and the level of output. 
Total cost refers to the total expense incurred in reaching a particular level of
output; if such total cost is divided by the quantity produced, average or unit cost
is obtained. A portion of the total cost known as fixed cost—e.g., the costs of a
building lease or of heavy machinery—does not vary with the quantity produced
and, in the short run, does not alter with changes in the amount produced. Variable
costs, like the costs of labour or raw materials, change with the level of output

Meaning
In production, research, retail, and accounting, a cost is the value of money that has
been used up to produce something or deliver a service, and hence is not available
for use anymore. In business, the cost may be one of acquisition, in which case the
amount of money expended to acquire it is counted as cost. In this case, money is
the input that is gone in order to acquire the thing. This acquisition cost may be the
sum of the cost of production as incurred by the original producer, and further costs
of transaction as incurred by the acquirer over and above the price paid to the
producer. Usually, the price also includes a mark-up for profit over the cost of
production
Defenations

()I.C.M.A., London:
“Cost is the amount of expenditure (actual or notional) incurred
on or attributable to a specified thing or activity”.
()Crowningshield:
“It is an expenditure made to secure an economic benefit, generally
resources that promise to produce revenue. The resources may have tangible
substance (material or machinery) or they may take the form of services (wages,
rent, power)”.
() Shillinglaw:
“Cost represents the resources that must be sacrificed to attain a
particular objective”.
() The Committee on Cost Concepts and Standards of the American Accounting
Association:
“It is the foregoing, in monetary terms incurred or potentially to be
incurred to achieve a specific objective”.
()Anthony and Welsh:
“Cost is a measurement in monetary terms, of the amount of
resources used for some purposes”.
() A. I. C. P. A. Committee on terminology:
“It is the amount measured in money or cash expended or other
property transferred, capital stock issued, services performed, or a liability incurred
in consideration of goods or services received or to be received”.
Ii) W. M. Harper:
“It is the value of economic resources used as a result of producing or
doing the thing costed
Objectives Of Cost Accounting

1) Ascertainment of cost
2) Control of cost
3) Determination of selling price
4) To provide basis for operating policy
5) Frequent preparation of accounts and other reports
6) To provide data for cost reduction
7) Preparation of cost estimate
8) Standards for measuring efficiency

1. Subsistence Farming

Subsistence farming is the practice of raising crops and animals solely for
the farmer's consumption. It involves working on small agricultural plots
with fundamental farm machinery. It is believed that most subsistence
farmers are poor and therefore unable to buy better seeds and fertilizers. As
a result, the farm is on land with poor soil fertility or challenging
topography. Low- yielding subsistence farming doesn't employ irrigation or
electricity, both of which are frequently unavailable to these farmers. Almost
no food is sold for a profit because the farmer and his family consume
almost all the food that is produced. The mid-latitudes are experiencing a
boom in agricultural activity.
2. Dry Farming

A specific type of agriculture known as "dry farming" is practiced in regions

with irrigation issues and low rainfall totals of less than 20 inches. On dry
ground, crops including winter wheat, corn, beans, sunflower, and even
watermelon may be cultivated. Even with only 9 inches of precipitation
annually, arid soil can be successfully farmed; higher rainfall broadens the
range of crops.

3. Mixed Farming

Commercial farming entails growing plants and animals intending to sell

them for a profit. It is the foundation of the global agriculture sector. Even
though the commercial economy has been around for thousands of years,
significant developments have occurred over the past century. The ability to
genetically modify crops to produce a variety of resistance is now possible
because of scientific and technological advancements.

4. Pastoral Farming

One of the oldest farming systems is pastoral farming. Pastoral farming is the
practice of only rearing animals in cold, humid climates that are not good for
growing crops. These steep slopes are less nutrient-rich and designed to
encourage mechanization rather than plant growth. These grounds are
typically good for weeds and grasses. Strong winds and heavy water flow
during rainstorms increase the likelihood of crop damage in sloping terrain.
Sheep are better raised in sloping terrain rather than dairy animals. Sheep can
eat grass and are adaptable to cold and humid climates.
5. Sedentary Farming

An agricultural practice known as sedentary farming involves using the same

piece of land year after year. In contrast to nomadic farming, this. This kind
of farming is carried out by a single farmer who does not rotate the fields.
Primitive farmers in tropical Africa who consistently cultivated the same plot
of land rather than rotating or changing it sometimes was referred to by this
word.

6. Nomadic Farming

A type of animal husbandry known as nomadic animal husbandry includes

moving cattle from one location to another in search of new grazing land and
water. Nomadic cattle can take many different shapes depending on the
region or culture. We refer to some human tribes and cultures as nomads
because they have always relied completely on roving livestock.

7. Shifting Cultivation

In the tropics, shifting agriculture entails the cultivation of crops on forest

grounds following forest removal or burning. Native Americans farm on
forest land until the soil is no longer fertile. The soil typically loses its
fertility or becomes dominated by local flora over a period of three to five
years. Farmers relocate to the next forest and continue the process thereafter
the soil loses its fertility. The primary use of this farming is to produce
grains in the tropics.
8. Commercial farming

Commercial agriculture refers to the activity of growing plants and animals

for profit. It also goes by the name of industrial agriculture. Huge landscapes
are largely necessary for commercial agriculture to grow crops and trees in
large quantities and of high quality. Due to its great commercial value,
farmers only use it on a small basis. Tea, coffee, rubber, coconut, grapes,
mangoes, apples, avocados, and palm oil are some of the most important
commercial crops.

9. Mediterranean farming

Mediterranean agriculture involves growing crops and rearing cattle in the

arid Mediterranean climate. The main agricultural products grown in the
region are small animals and crops including citrus fruits, vineyards, and
wheat. Horticulture is also practiced because of the winter rains, with most
crops being sown in the winter.

10. Cooperative Farming

In this style of farming, everyone who participates has an ownership stake in

the enterprise. There is no pressure other than the cooperative members, who
willingly combine their resources to run the business. All members are free
and have the freedom to quit society whenever they want without losing
their ownership of the land and resources they have reserved.

The members' respective shares of capital, labor, and land determine how
much money everyone receives. Additional classifications for this form of
farming include Cooperative improved farming Ownership & operations
both individually.
 Cooperative joint farming. Operations are carried out collaboratively while
ownership is individual. Cooperative Tenant farming Individual activities
and collective ownership. Cooperative collective farming Owning and
running the farm jointly.

11. Crop rotation

Crop rotation is one of the agricultural methods that involve changing the
cultivation of crops on the same plot of ground during various growing
seasons. By using this technique, the soil is helped to restore its fertility and
nutrients that were lost during a previous crop harvest.

12. Capitalist Farming

Big businesspeople or capitalists invest land and money in capitalism-based

farming. The employed laborers receive pay. Improved farming techniques
and intensive farming are used. In general, farms are mechanized. Workers
receive more pay. The investor or businessperson is responsible for the
company's profit or loss.
INDIAN FARMER

India is a land of villages. A majority of her population lives in villages.

Most of them are farmers. Agriculture is their main occupation. They
work on the fields that are around the village. Indian economy is an
agricultural one. So the importance of the farmer is very great. Let us
examine, in brief, the life of an Indian farmer.
Hard working-An Indian Farmer is very hard working. He gets up early
in the morning, takes his plough, and with his cattle goes to his field
even before it is full daylight. He works there all day without caring for
the hardships of the weather. Winter, summer or rain, it is all the same
for him. We find him working on his field sowing, ploughing or reaping
in biting cold as well as in the hot winds or summer.
He works till noon, when his wife or children bring for him his mid- day
meal. He takes it under the shade of some tree. Having eaten his food and
having washed it down with a glass of cool water of a flowing brook or
well, he again resumes his work. Often he sings a song to break the
monotony of his hard labour.
HISTORY OF INDIAN FARMER

Indian agriculture began by 9000 BCE on north-west India with the early
cultivation of plants, and domestication of crops and animals. Indian subcontinent
agriculture was the largest producer of wheat and grain. They settled life soon
followed with implements and techniques being developed for agriculture. Double
monsoons led to two harvests being reaped in one year. Indian products soon
reached the world via existing trading networks and foreign crops were introduced
to India. Plants and animals—considered essential to their survival by the Indians
—came to be worshiped and venerated. Due to the growth and prosperity that
followed India's economic reforms a strong middle class emerged as the main
consumer of fruits, dairy, fish, meat and vegetables—a marked shift from the
earlier staple based consumption. Since 1991, changing consumption patterns led
to a 'revolution' in 'high crop value' agriculture while the need for cereals is
experienced a decline. The per capita consumption of cereals declined from 192 to
152 kilograms from 1977 to 1999 while the consumption of fruits increased by
553%, vegetables by 167%, dairy products by 105%, and non-vegetarian products
by 85% in India's rural areas alone. Urban areas experienced a similar increase.
IMPORTANCE OF AGRICULTURE

Source of :-

 Livelihood :-

Most people’s main source of livelihood is farming. About 70% of people

rely directly on agriculture as a livelihood. The result of the non-
development of non-agricultural activities to absorb the fast-growing
population is this high percentage in agriculture. Furthermore, many people
are not engaged in agriculture in developed countries.

 Contribution to National revenue :-

Agriculture is the main source of national income for most developing

countries. However, for developed countries, agriculture contributes a
smaller percentage to their national income.

 Supply of Food as well as Fodder :-

The agricultural sector provides fodder for domestic animals. The cow
provides people with milk which is a form of protective food. Moreover,
livestock also meets people’s food requirements.

 Significance to the International Trade :-

Agricultural products like sugar, tea, rice, spices, tobacco, coffee, etc.
constitute the major items of exports of countries that rely on agriculture. If
there is a smooth development practice of agriculture, imports are reduced
while export increases considerably. This helps to reduce countries’
unfavorable balance of payments as well as saving foreign exchange. This
amount may be well used to import other essential inputs, machinery, raw
material, and other infrastructure that is helpful for the support of the
country’s economic development.
  CONTRBUTION OF AGRICULTUE IN GDP OF INDIA

The history of Agriculture in India dates back to the Neolithic. India ranks second
worldwide in farm outputs. As per 2018, agriculture employed more than 50% of
the Indian work force and contributed 17–18% to country's GDP.
In 2016, agriculture and allied sectors like animal
husbandry, forestry and fisheries accounted for 17.5% of the GDP (gross domestic
product) with about 41.49% of the workforce in 2020. India ranks first in the world
with highest net cropped area followed by US and China. The economic
contribution of agriculture to India's GDP is steadily declining with the country's
broad-based economic growth. Still, agriculture is demographically the broadest
economic sector and plays a significant role in the overall socio-economic fabric
of India.
The total agriculture commodities export was US$3.50 billion in March - June
2020. India exported $38 billion worth of agricultural products in 2013, making it
the seventh largest agricultural exporter worldwide and the sixth largest net
exporter.
  CONTIBUTION OF AGRICULTURE IN EMPLOYMENT OF INDIA

Labour in India refers to employment in the economy of India. In 2020, there

were around 501 million workers in India, the second largest after China. Out of
which, agriculture industry consist of 41.19%, industry sector consist of 26.18%
and service sector consist 32.33% of total labour force. Of these over 94
percent work in unincorporated, unorganized enterprises ranging from pushcart
vendors to home- based diamond and gem polishing operations. The organized
sector includes workers employed by the government, state-owned enterprises and
private sector enterprises. In 2008, the organized sector employed 27.5 million
workers, of which
17.3 million worked for government or government owned entities. The Human
Rights Measurement Initiative finds that India is only doing 43.9% of what should
be possible at its level of income for the right to work.

SECTOR WISE EMPLOYMENT IN INDIA

32.33 41.19

26.18

AGRICULTURE INDUSRTY SERVICE

IMPORTANCE OF AGRICULTURE IN INDIA

Farmers are simply called as the ‘Backbone of India’. They are the most useful
people as they provide food. They never stop their work even furring heavy rains
and sunny days. Agriculture is an important part of every country, as they are also
one of the major contribution to economic growth. The government should concern
for our agriculture heroes. Farmers have great importance in our society. They are
the ones who provide us food. Since every person needs proper food for their
living, so they are a necessity for the society.

 Farming is a remarkable part of the economy in India, as it adds about 20.19

per cent of the absolute GDP. It gives employment to over 41.19 per cent of
the population.
 Farmers are an important part of the existence of our various societies
because they provide food and fiber, which gives us nutrition and
cloth.
 Farming is an industry that relies on the natural environment.
 Cultivation practices often provide natural biologically active
filter mechanisms for water as well as soil vegetation
stabilization.

 Indian Farmer and farming communities provide an excellent

environment to raise relations
 They offer opportunities for young and old alike to gain experiences in
basic lifelong values, an appreciation for success, as well as the sorrow of
life’s most challenging occurrences.
 Agriculture plays a vital role in the Indian economy. Over 70 per cent of the
rural households depend on agriculture.
INCOME SOURCES OF FARMERS

The following are some of the examples of Agricultural Income:

 Income derived from sale of replanted trees.
 Income from sale of seeds.
 Rent received for agricultural land.
 Income from growing flowers and creepers.
 Profits received from a partner from a firm engaged in agricultural
produce or activities.
 Interest on capital that a partner from a firm, engaged in
agricultural operations, receives.

The following are some of the examples of Non-Agricultural Income:

 Income from poultry farming.
 Income from bee hiving.
 Any dividend that an organization pays from its agriculture income.
 Income from the sale of spontaneously grown trees.
 Income from dairy farming.
 Income from salt produced after the land has flooded with sea water.
 Purchase of standing crop.
 Royalty income from mines.
 Income from butter and cheese making.
 Receipts from TV serial shooting in farm house.
The Economic Survey 2021-22, released, said that the average monthly income per
agricultural household in the country stood at Rs 10,218 in 2019 as against Rs 6,426 in
2014.

The Economic Survey, tabled by Finance Minister Nirmala Sitharaman in the

parliament, cited the data from the 'Land and Livestock Holdings of Households and
Situation Assessment of Agricultural Households' (SAS) survey carried out by the
National Statistical Office (NSO) during January 1, 2019 to December 31, 2019 period
for these numbers.

The SAS report was released in September 2021, while the earlier SAS report was
published in 2014."The SAS, 2021 reveals that the average monthly income per
agricultural household, as per paid out expenses approach, works out to be Rs 10,218.
The average monthly income per agricultural household was Rs 6,426 as per the last
SAS Report of 2014 estimated by the same approach," the Survey said.
PROBLEMS FACED BY FARMERS IN INDIA
While Indian agriculture has performed fairly well during the last two decades in
terms of record production, diversification towards high value horticulture,
livestock and marine products and doubling its share in global trade in agriculture,
the sector is currently saddled with issues, especially related to sustainability,
nutrition, adoption of new agricultural technologies and, perhaps most importantly,
income levels of the population dependent on farming which require long-term
reorientation of food, agriculture, and farm policies. Some of the major challenges
faced by the farm sector are highlighted in this section.
 1. Climate Change :-
The climatic factors continue to have a significant impact on the agricultural
productivity in India. Rising temperature along with increased occurrences
of
extreme weather conditions have made climate change a major threat to
Indian agriculture and productivity loss (RBI, 2020). Season-wise analysis
shows that months pertaining to the rabi season (October to February) have
recorded
maximum changes in rainfall and temperature. Long-term co-movements
show that the change in different climatic variables have different
implications for rabi and kharif crops.
While the maximum temperature anomalies in both the seasons depict a
significant negative relationship with respective yields, for minimum
temperature anomalies, the correlation turned out to be negative but
statistically significant in case of rabi season only (Chart 9a). Overall, the
preliminary findings indicate that maximum temperature impact is more
prominent during kharif season while minimum temperature anomalies
impact rabi crop yields more. Apart from hampering the biological growth of
the plants, climate change also results in crop damage by increasing pest and
disease attacks. The increased incidence of extreme weather conditions like
flood and droughts coupled with unseasonal rains also pose a serious threat
to the standing crops. It has been observed that small and marginal farmers
are more prone to these impacts (Praveen & Sharma, 2020). Under such
scenario, climate risk mitigating policies can play an important role to save
the farm income.
 2. Agricultural Waste Management :-
Agricultural waste management poses another major challenge as crop
residue burnings in the northern states increase the air pollution levels,
create health
hazards and contribute to global warming. At all India level, crop residue
burning touched a figure of 48.6 million tons during 2018 and out of this, 50
per cent was contributed by paddy alone (Chart 9b). Short gap between the
kharif harvest and rabi sowing in the northern states along with difficulties
faced by farmers in residue management – physical (unavailability of labour)
and economical (high cost in removing) – induces the small and marginal
farmers to go for in situ residue burning which leads to air pollution. There
are many solutions suggested by experts including improved and effective
mechanization for in situ residue management, viz., briquetting and
conversion of wastes into fuel forms, various industrial usages and recent
intervention of microbial decomposing solution etc. However, sustainable
solutions should consider cost effectiveness, multiple stakeholders’
involvement as well as suitability from the socio economic and
environmental point of view.
 3. Fragmented Landholdings :-
Over the years, the number of farm holdings in India has increased but the
area under farming has come down. As a result, the average size of holdings
has decreased substantially. The average size of landholding in the country
has come down to 1.08 hectares in 2015-16 from 2.28 hectares in 1970-71.
Marginal and small holdings together constitute 86 per cent of total holdings
in India. Such fragmented land occupancy structure makes it almost
impossible for farmers to viably invest in tube wells, drip irrigation, storage
or bulk inputs. Land consolidation is thus important to drive higher
efficiency. Unfortunately, the land market in India is thin and various
constraints such as poor quality of land records, complex administrative
procedures, restrictions on transferability of land rights, leasing, sub-leasing
and rental arrangements hinder the development of land market
(Bhattacharjee, 2020).

 4. Disguised Unemployment :-
As per Census statistics, the rural population in India stands at 833 million,
constituting almost 68 per cent of the total. While the agriculture sector
engages 49 per cent of the total labour force in the country, its contribution
to overall GVA is only 17 per cent which shows the overdependence of
Indian labour force on agriculture resulting in significant hidden or
disguised unemployment in the sector and thus lower labour productivity
(FAO, 2020;
 Joshi 2005) (Chart 10a). Studies show that many farmers [around 40 per cent
of the farmers surveyed by the National Sample Survey Organization
(NSSO)] have expressed willingness to move out of farming if they find
suitable alternatives (Chand, 2017; Himanshu et al.., 2016 and Chand and
Srivastava, 2014). With surplus labour moving out of agriculture, the land
holding size per capita will increase and would in turn lead to increasing
economies of scale. However due to various socio-economic constraints like
low skill and education levels, locational disadvantage of rural dwellers and
limited labour absorbing capacity of non-farm sectors, the shift has been
taking place at a very slow rate (Chand and Srivastava, 2014).

 5. Food Inflation and Volatility in Food Prices :-

As agricultural production in India is still heavily dependent on rainfall and
its spatial distribution, adverse climatic conditions like draught, flood and
unseasonal rains tend to disrupt both aggregate supply and supply chains,
imparting large volatility to food inflation trajectory. In addition,
inefficiencies in the food supply chain – high and volatile retail mark ups on
wholesale/farm gate prices and limited level of development of the food
processing industry – impact food inflation in India (Bhoi et al.. 2019;
Dhanya et.al., 2020). While the overall level of food inflation has moderated
since 2014-15, backed by a series of record production of foodgrains and
horticultural crops as well as lower global food prices, the volatility in food
inflation continues to remain high (Chart 11a). The contribution of food, and
particularly, vegetables, to volatility in headline inflation is significantly
higher than non-food items, reflecting the perishable nature of the crop, short
crop cycles, lack of adequate storage and poor pre- and post-harvest
practices (RBI, 2020).
Even non-perishables such as pulses and cereals have exhibited considerable
volatility (Chart 11b). In general, prices of agricultural products in India
have displayed a cobweb phenomenon i.e., alternate years of high and low
prices based on supply response to price sentiments. The role of supply
management in terms of minimizing post-harvest losses, scaling up storage
infrastructure, development of food processing industry and upgrading food
safety standards assumes importance in this context. Public and private
sector investment can
play a critical role to build up the agricultural infrastructure required for
efficient post-harvest practices.

Even non-perishables such as pulses and cereals have exhibited considerable

volatility (Chart 11b). In general, prices of agricultural products in India
have displayed a cobweb phenomenon i.e., alternate years of high and low
prices based on supply response to price sentiments. The role of supply
management in terms of minimizing post-harvest losses, scaling up storage
infrastructure, development of food processing industry and upgrading food
safety standards assumes importance in this context. Public and private
sector investment can play a critical role to build up the agricultural
infrastructure required for efficient post-harvest practices.
OTHER CHALLENGES OF INDIAN AGRICULTURE

 Instability: Agriculture in India is largely depends on monsoon. As a

result, production of food-grains fluctuates year after year. A year of
abundant output of cereals is often followed by a year of acute
shortage.
 Cropping Pattern: The crops that are grown in India are divided into
two broad categories: food crops and non-food crops. While the former
comprise food-grains, sugarcane and other beverages, the latter includes
different kinds of fibers and oilseeds.
 Land Ownership: Although the ownership of agricultural land in India
is fairly widely distributed, there is some degree of concentration of
land holding. Inequality in land distribution is also due to the fact that
there are frequent changes in land ownership in India. It is believed that
large parcels of land in India are owned by a- relatively small section of
the rich farmers, landlords and money-lenders, while the vast majority
of farmers own very little amount of land, or no land at all.
 Sub-Division and Fragmentation of Holding: Due to the growth of
population and breakdown of the joint family system, there has occurred
continuous sub-division of agricultural land into smaller and smaller
plots. At times small farmers are forced to sell a portion of their land to
repay their debt. This creates further sub-division of land.
 Land Tenure: The land tenure system of India is also far from perfect.
In the pre-independence period, most tenants suffered from insecurity
of tenancy. They could be evicted any time. However, various steps
have been taken after Independence to provide security of tenancy.
 Conditions of Agricultural Labourers: The conditions of most
agricultural labourers in India are far from satisfactory. There is also the
problem of surplus labour or disguised unemployment. This pushes the
wage rates below the subsistence levels.
 Manures, Fertilizers and Biocides: Indian soils have been used for
growing crops over thousands of years without caring much for
replenishing. This has led to depletion and exhaustion of soils
resulting in their low productivity. The average yields of almost all the
crops are among t e lowest in the world. This is a serious problem which
can be solved by using more manures and fertilizers.
 Irrigation: Although India is the second largest irrigated country of the
world after China, only one-third of the cropped area is under
irrigation. Irrigation is the most important agricultural input in a
tropical monsoon country like India where rainfall is uncertain,
unreliable and erratic India cannot achieve sustained progress in
agriculture unless and until more than half of the cropped area is
brought under assured irrigation.
 Lack of mechanization: In spite of the large-scale mechanization of
agriculture in some parts of the country, most of the agricultural
operations in larger parts are carried on by human hand using simple and
conventional tools and implements like wooden plough, sickle, etc.
Little or no use of machines is made in ploughing, sowing, irrigating,
thinning and pruning, weeding, harvesting threshing and transporting
the crops.
 Agricultural Marketing: Agricultural marketing still continues to be in
a bad shape in rural India. In the absence of sound marketing facilities,
the farmers have to depend upon local traders and middlemen for the
disposal of their farm produce which is sold at throw-away price.
 Inadequate transport: One of the main handicaps with Indian
agriculture is the lack of cheap and efficient means of transportation.
Even at present there are lakhs of villages which are not well connected
with main roads or with market centers.
Shortcomings or Negative Aspects of Market Methods

1)As the agricultural produce is transferred to multiple entities,

ownership in the system stays solely with the farmers. The produce is
not cared for because no one else claims it.
2)Farmers alone are responsible for all losses and notes. (Loss in
quality, quantity, during transportation, and weight)
3)At three to four locations, farmers will be responsible for paying all
costs, including Portage, Measuring, Loading, Levy, Carriage, etc. As a
result, these components bear the bulk of the cost share.
4)All transactions are under the eyes of farmers, e.g., pricing
determination. Due to the distribution of goods and the weighing of
agricultural products, farmers are defrauded on a wide scale.
(5) The quality of perishable items is drastically declining, and the rate
of agricultural produce loss has grown, as a result of the current system's
handling of agricultural produce 4-5 times.
6) Dangerous procedures and chemicals are frequently used to
agricultural products to preserve them and raise their value by using
middlemen, compromising the consumers' health.
 ABOUT THE
SHRI SWAMI SAMARTHA
FARMER PRODUCER
COMPANY LTD
Farmers' decreasing ability to hold onto their land, the negative effects of
unfavorable environmental conditions on cropping systems, their declining
influence over the market system, the increase in price volatility brought on by
artificial price increases or decreases, and the rising cost of agricultural inputs all
result in a declining percentage of farmers' total farm income. With the support of
progressive farmers and young people with higher education and professional
training, the Shri Swami Samarth Shetkari Self-help Group was founded in order to
promote the engagement of farmers in the aforementioned elements.

In the face of unpredictable natural circumstances, the group seeks to strengthen

the involvement of farmers in all that is within their control. As a result, actions
include direct sales of agricultural products and the direct procurement of
agricultural supplies from producer.

Farmers' associations served as the foundation for the production of agricultural

goods directly from farmers, cutting out the middlemen.

A direct selling programme from farmers to customers was put into place in
January 2013 in accordance with the Maharashtra State's Agriculture and
Marketing Policy. of the scheme From the start, the group took an active role in
the plan. supporter of the Farmer to Consumer Direct Selling Scheme as a group
Consequently, a number of the group's members also made the appointment for
agricultural marketing. also spent 6-7 months working as a facilitator for the
board.

Through 84 farmer groups, the selling of agricultural goods generated by farmers

was initiated in 264 cooperative housing communities in Pune City.

Economic support for rural economies from urban locations. Farmers that want to
provide a portion of their income to rural areas. The idea of weekly marketplaces
has been put forth. manufactured in remote areas. agricultural goods, cereals,
pulses, home goods, items made by women's self-help organizations, Traditional,
rural goods are much sought for in urban places. It is clear from this vantage point
that urban consumers and rural producers. By fusing markets, urban consumers,
and rural products. The farmers' market is where agricultural products and goods
are directly supplied. The majority of consumer spending goes to rural areas and
the rural economy since agricultural and rural goods are sold directly by farmers.
 CURRENT MARKET MECHANISM

Fruits, Leafy Vegetables, Flowers in Large City Market Committee.

Pune, Nashik, Mumbai, Nagpur, Chh. Sambhajinagar

Harvesting and Transport of Agricultural Products

Dowry and Transportation

Market Committee/Hinders

Market Committee Wholesalers

Market Committee Retailers

Retailers and Transportation

Customers
FARMERS SHARE OF THE RUPEE SPENT BY THE CONSUMER
( E.g., Tomato Crop)

Current Situation
Dowry
2%

Farmers
(Production
Retiler (Including with cost)
Selling 21%
Expense)
31%

Destruction of
Goods
14%

C h a rges
6%

Wholesaler
Transportation and 13%
Marketing Expense
13%

Dowry
Farmers (Production with cost)
Destruction of Goods
Wholesaler
Transportation and Marketing Expense
Charges
COMPERATIVE CURRENT STATUS MARKET SYSTEM AND
FARMERS MARKET (ALL FIGURES IN PERCENTAGE) IN RUPEES
SPENT BY CONSUMERS

Farmers (including cost of production)

D owry

Charges

Wholesaler

Retailer

Transportation and Marketing Expense

Desruction of Goods

consumer purchase price

0 20 40 60 80 100 120

Present Situation Farmer's Market

SHRI SWAMI SAMARTHA FARMERS PRODUCER
CO. LTD. ORGANIZES THE FARMERS WEEKED
MARKET.

1)To provide direct markets for farmers' produce as well as that of rural women's
self-help organizations done
2)Sales of 15-20 different varieties of fruits and vegetables made by farmer
organizations through their 3% direct sales in cities.
3) Not every farmer has need to for sale. Selling by Representative.
4)Farmers have direct contact with consumers and receive direct payment in
exchange for agricultural products.
5)The representative now weighs the items straight from the farm or collecting
location and is responsible for all subsequent actions. Count the cost to the farmer
before you applaud. Commercial, cultural becomes like
6)Because there is only one transit of items during the Farmers' Weekly Market,
mother quality is preserved.
7) The cheek's quality, weight, and quality are maintained.
8) Since supply and demand are in balance, there is less loss of perishable items.
9)Customers can purchase fresh produce straight from producers. This guarantees a
nice cheek.
10)It has been shown that price increases of 10% to 20% typically benefit both
farmers and consumers.
(11)It is noted that there is a great deal of enthusiasm and curiosity among the
customers as a result of the introduction of the country culture to the city
customers.
Farmers generate
(12)For the educated peasantry, self-employment that is self-respecting and secure
is preferable than unemployment or menial work. Agribusiness, horticulture, and
farm kids.
Farmers Field School for Quality Production

Because of the direct involvement of the farmer in this farm school and getting
guidance from a trained person, it is well used for farmer training.
Currently, 40 to 45 farmers participate in direct marketing, and typically, 900 to
1000 farmers participate directly in a group of 20. Additionally, other farmer
associations and production firms are interested in joining the direct marketing
programme. These farmer groups are FFS. The subsequent instruction might be
provided through
:-

1) Improved vegetable cultivation technology.

2) Organic Vegetable Cultivation Technology
3) Integrated pest control technology.
4) Environment controlled vegetable cultivation.
5) Harvesting of vegetables, manual selection and grading etc. Training
Cultural Farming Innovation Selling
6) Vegetable Packaging Training.
7) Care to be taken while transporting vegetables.
8) Training in direct selling, good communication skills, customer relations etc.
Benefits of Farmers Weekly Markets and Direct Marketing
 By The Farmers Point of view:-

1) Farm products have direct market access.

2) The farmer controls the whole price of the produced agricultural goods.
3) Farmers also receive consumer demand forecasts for the future. Farmers
learn about marketplaces.
4) Customer demand and quality as a result of direct customer interaction
5) Demand, anticipated prices, etc. You can find out in-depth details about it.
6) Farmers are released from the constraints of the established selling system.
7) On the market and, alternatively, on the supply, demand, and price of
agricultural products The farmer keeps the reins.
8) The farmer has access to a wealth of knowledge and information to plan the
upcoming crops, enabling him to create the crop's timetable on his own.
9) It contributes to farmers having a higher level of living.
10) Farmers get more comfortable with risk-taking and entrepreneurship.

 By The Customers Point of view:-

1) Direct access to fresh, hygienic, carefully chosen farm products for

consumers.
2) Because the products are produced by the farmers themselves, they are
reliable.
3) The availability of high-quality agricultural products, including organic
produce grown without the use of hazardous fertilizers or chemical
treatments.
4) Since the customers and farmers are in close contact, the customers can
express their expectations to the farmers.
5) Consumers enjoy purchasing farm products from farmers and farmers
appreciate being compensated for their labor-intensive labour.
6) Since customers are exposed to rural life, culture, and agriculture, it is clear
that a significant portion of consumers are responding to this experiment.
7) Everything you need is under one roof, including fruits, vegetables, grains,
beans, milk, and agricultural goods. rationing sales
OBJECTIVES
OBJECTIVES :-

 To study the role of Shri Swami Samartha Farmer Producer

Company.
 To understand strategies of Shri Swami Samartha Farmer Producer
Company to increase income of Farmers.
 To analyses the various innovative strategies of Shri
Swami Samartha Farmer Producer Company.
 To evaluate the impact of strategies to improve income of farmers.
 RESEARCH
AND
METHODOLOGY
 1. Qualitative Research

Qualitative Research is primarily exploratory research. It is used to gain an

understanding of underlying reasons, opinions and motivations. It provides insights
into the problem or helps to develop ideas or hypotheses for potential quantitative
research.

Data collection approaches for qualitative research usually involves:

1. Direct interaction with individuals on a one to one basis.

2. Direct interact with individuals in a group setting.

Qualitative research data collection methods are time consuming; therefore, data is
usually collected from a smaller sample than would be the case for quantitative
approaches; therefore, this makes qualitative research more expensive.

The benefits of the qualitative approach are that the information is richer and ha a
deeper insight into the phenomenon under study. The main methods for collecting
qualitative data are:

1. Individual Interviews 3. Observation

2. Focus Group 4. Action

2. Quantitative Research
Quantitative Research is the systematic empirical and detailed investigation
of observable phenomenon via statistical, mathematical and computational
techniques.

Quantitative research is generally made using scientific measures, which

includes:

 The generation of models, theories and hypotheses.

 The development of instruments and methods for measurements.
 Experimental control and manipulation of variables.
 DATA
ANLISES
AND
INTERPRETATION
OF FARMER’S
 1)GEDNER

MALE FEMALE PREFER NOT TO SAY

Gender
Number of Respondent Percentage of Respondent
Male 23 100%
Female 0 0%
Prefer not to say 0 0%

From the above table, 100% of respondents are Male, 0% of respondent

are Female and also 0% of respondents are Prefer not to say.
 2)EDUCATION

18%

48%

17%

17%

Below 10th 10th 12th Above 12th

Education
Number of Respondent Percentage of Respondent
Below 10th 4 18%
10th 4 17%
12th 4 17%
Above 12th 11 48%

Around 48% of respondents receive education above the 12th grade and
18% receive education below the 10th, while 17% receive education in
the 10th and also 17% receive education in the 12th grades.
 3)What kind of product are you selling on the Shri Swami
Samartha Farmer Producer company’s market?

4%

35%

61%

Vegetables Fruits Seeds Dry-Fruits Dairy Products

What kind of product are you selling on the Shri Swami Samartha Farmer
Producer company’s market?
Number of Respondent Percentage of Respondent
Vegetables 14 61%
Fruits 8 35%
Seeds 0 0%
Dry-Fruits 0 0%
Dairy Products 1 4%

According to the above table, 61% of farmers sell vegetables and 35%
sell fruits in market. 4% Farmers also sell dairy products.
 4)Did you expect income from your farming before joining
the Shri Swami Samartha Farmer Producer Company?

9%

26%

43% 22%

Sometime Average Always Rarely

Did you expect income from your farming before joining the Shri
Swami Samartha Farmer Producer Company?
Number of Respondent Percentage of Respondent
Sometime 6 26%
Average 5 22%
Always 10 43%
Rarely 2 9%

From the table, 26% of respondents expect the income sometime. 22% of
respondents anticipate income in average time, whereas 43% anticipate
income from farming at all times. 9% of respondents rarely expect
income from farming.
 5)What problems did you face before joining the this Shri
Swami Samartha Farmer Producer Company?

17%

48% 13%

17%

5%

Lacking in supply chain Lack of Price Fixation system Lack of Market Information
Predominance of Intermediaries All of the above

What problems did you face before joining the this Shri Swami Samartha Farmer
Producer Company?
Number of Respondent Percentage of Respondent
Lacking in Supply 4 17%
Chain
Lack of Price 3 13%
Fixation
Lack of Market 4 17%
Information
Predominance of 1 5%
Intermediaries
All of the above 11 48%
According to the above table, 17% of respondents face the issue of a lack
of a supply chain. 13% of respondents are concerned about a lack of
price fixation, 17% are concerned about a lack of market information,
and 5% are concerned about the dominance of intermediaries. 48% of
farmers face all of the problems listed above.
 6)What kind of platform is provided by Shri Swami Samartha
Farmer Producer Company?

57% 39%

4%

Provide Infrastructure for selling of goods

Guidance and Training on Strategies to improve Farming

All of the above

What kind of platform is provided by Shri Swami Samartha Farmer Producer

Company?
Number of Respondent Percentage of Respondent
Provide Infrastructure 9 39%
for selling of goods
Guidance and Training 1 4%
All of the above 13 57%

In this case, 39% of farmers receive a platform to sell their goods, while
4% receive guidance and training from the company. The 57% of farmers
receive both services from company.
 7)What kind of problems are solved when you join the Shri
Swami Samartha Farmer Producer Company?

18%

52% 17%

9%

4%

Lacking in supply chain Lack of Price Fixation system Lack of Market Information
Predominance of Intermediaries All of the above

What kind of problems are solved when you join the Shri Swami Samartha Farmer
Producer Company?
Number of Respondent Percentage of Respondent
Lacking in Supply 4 18%
Chain
Lack of Price 4 17%
Fixation
Lack of Market 2 9%
Information
Predominance of 1 4%
Intermediaries
All of the above 12 52%
According to the above table, 18% of respondents solve the issue of a
lack of a supply chain. 13% of respondents who were concerned about a
lack of price fixation are satisfied; 17% are concerned about a lack of
market information are satisfied; and 5% are concerned about the
dominance of intermediaries are also satisfied. 48% of farmers solve all
of the problems listed above.
 8) Do you have own Pricing Strategy or They have suggest
you?

13%

9%

78%

Pricing by own Pricing by SSSFP Company Get decisions by co-ordinate with

company

Do you have own Pricing Strategy or They have suggest you?

Number of Respondent Percentage of Respondent
Pricing by own 3 13%
Pricing by SSSFP 2 9%
Company
Get decisions by co- 18 78%
ordinate with company

In the above table, 13% of farmers price their goods by themselves, 8.7%
of farmers price their goods by company, and 78% of farmers get
decisions about pricing by co-ordinating with the company.
 9)Whether they provide training related to your profession?

30%

70%

Weekly Monthly Quarterly Yearly

Whether they provide training related to your profession?

Number of Respondent Percentage of Respondent
Weekly 16 70%
Monthly 7 30%
Quarterly 0 0%
Yearly 0 0%

According to the table, 70% of farmers receive weekly training. Every

month, 30% of farmers receive training related to their profession.
 10) Did you get popularity when you join the Shri Swami
Samartha Farmer Producer company?

17%

83%

Little bit Its effective Not helpful

Did you get popularity when you join the Shri Swami Samartha Farmer
Producer company?
Number of Respondent Percentage of Respondent
Little bit 19 83%
Its Effective 4 17%
Not Helpful 0 0%

From the above table, 83% farmers get some popularity when they join
the company and 17% farmers response that its effective for popularity.
 11) What percentage(%) of your income is increased when
you join Shri Swami Samartha Farmer Producer company?

9%

17%

74%

5% 10% 20%
25%

What percentage(%) of your income is increased when you join

Shri Swami Samartha Farmer Producer company?
Number of Respondent Percentage of Respondent
5% 0 0%
10% 2 9%
20% 4 17%
25% 17 74%

According to the above table, 9% of farmers' income increased by 10%,

17% of farmers' income increased by 20%, and 74% of farmers' income
increased by 25%.
 12) If you are satisfied with the performance of
the company, How would you rate it?

4%

96%

1 Star 2 Star 3 Star 4 Star 5 Star

If you are satisfied with the performance of the company, How would you
rate it?
Number of Respondent Percentage of Respondent
1 Star 0 0%
2 Star 0 0%
3 Star 0 0%
4 Star 1 4%
5 Star 22 96%

From the above table, 4% of farmers rate the company as 4 stars, and
96% of farmers rate the company as 5 stars.
 FINDING
FROM
FARMER’S
SURVEY
 FINDING

1) 100% of respondents are Male, 0% of respondent are Female and

also 0% of respondents are Prefer not to say.
2) Around 48% of respondents receive education above the 12th grade
and 18% receive education below the 10th, while 17%
receive education in the 10th and also 17% receive education in the
12th grades.
3) 61% of farmers sell vegetables and 35% sell fruits in market. 4%
Farmers also sell dairy products.
4) 26% of respondents expect the income sometime. 22% of
respondents anticipate income in average time, whereas 43%
anticipate income from farming at all times. 9% of respondents
rarely expect income from farming.
5) 17% of respondents face the issue of a lack of a supply chain. 13%
of respondents are concerned about a lack of price fixation, 17%
are
concerned about a lack of market information, and 5% are
concerned about the dominance of intermediaries. 48% of farmers
face all of the problems listed above.
6) 39% of farmers receive a platform to sell their goods, while 4%
receive guidance and training from the company. The 57% of
farmers receive both services from company.
7) 18% of respondents solve the issue of a lack of a supply chain.
13%
of respondents who were concerned about a lack of price fixation
are satisfied; 17% are concerned about a lack of market information
are satisfied; and 5% are concerned about the dominance of
intermediaries are also satisfied. 48% of farmers solve all of the
problems listed above.
8) 13% of farmers price their goods by themselves, 8.7% of farmers
price their goods by company, and 78% of farmers get decisions
about pricing by co-ordinating with the company.
9) 70% of farmers receive weekly training. Every month, 30% of
farmers receive training related to their profession.
10)83% farmers get some popularity when they join the company and
17% farmers response that its effective for popularity.
11) 9% of farmers' income increased by 10%, 17% of farmers'
income increased by 20%, and 74% of farmers' income increased
by 25%.
12) 4% of farmers rate the company as 4 stars, and 96% of
farmers rate the company as 5 stars.
 DATA
ANLISES
AND
INTERPRETATION
OFCOMPANY
 1) Howdid you get inspired to start a farmers
market company?

How did you get inspired to start a farmers market company?

Number of Percentage of
Respondent Respondent
Effect of presence of a 1 25%
large number of
Middlemen on farmers
Logistical issues of 0 0%
getting products to
customers
Lack of marketing skills 0 0%
and resources
High levels of 0 0%
competition
All of the above 3 75%
According to the above table, 25% of respondents notice the issue of the
impact of a large number of middlemen on farmers, and 75% notice and
are inspired to start a farmers market company from all of the problems
listed above.
 2)How did you understand the Farmers Problems?

How did you understand the Farmers Problems?

Number of Respondent Percentage of Respondent
By direct contact 1 25%
with Farmers
By analyzing the 1 25%
survey
Get information 0 0%
from Rural area
informer
By observation 2 50%

According to the table above, 25% of respondents understand the

farmer's problem through direct contact with farmers, 25% through
survey analysis, and 50% through personal observation.
 3)What kind of support do you provide to farmers?

What kind of support do you provide to farmers?

Number of Respondent Percentage of
Respondent
Providing 0 0%
infrastructure for
selling of Goods
Training and 1 25%
Guidance for
Farming
Both 3 75%

From the above table, 25% of respondents respond that they provide
infrastructure for the sale of goods while 75% of respondents respond
that they provide both services to farmers listed above.
 4)What were the biggest challenges you faced when you first
started the company?

What were the biggest challenges you faced when you first started the
company?
Number of Respondent Percentage of Respondent
Finance 1 25%
Contact with 0 0%
Farmers
Convincing the 1 25%
benefits of
direct selling
All of the above 2 50%

In the above table, 25% of respondents respond that they faced the
lack of finance, 25% of respondent respond that they get difficulty in
convincing the benefits of direct selling to farmers while 50% of
respondents respond that they faced all challenges listed above.
 5)How did the farmers feel about joining your business and
using your platform to market their goods?

How did the farmers feel about joining your business and using your
platform to market their goods?
Number of Respondent Percentage of Respondent
Very satisfied 3 75%
Somewhat 0 0%
Satisfied
Not satisfied 0 0%
Completely 1 25%
Dissatisfied

According to the table above, 75% of respondents who received a

response from farmers are extremely satisfied, while 25% are completely
dissatisfied.
FINDING
FROM
COMPANY
SURVEY
 FINDINGS

1) 25% of respondents notice the issue of the impact of a large number

of middlemen on farmers, and 75% notice and are inspired to start
a farmers market company from all of the problems listed above.
2) 25% of respondents understand the farmer's problem through direct
contact with farmers, 25% through survey analysis, and 50%
through personal observation.
3) 25% of respondents respond that they provide infrastructure for the
sale of goods while 75% of respondents respond that they provide
both services to farmers listed above.
4) 25% of respondents respond that they faced the lack of finance,
25% of respondent respond that they get difficulty in convincing
the benefits of direct selling to farmers while 50% of respondents
respond that they faced all challenges listed above.
5) 75% of respondents who received a response from farmers are
extremely satisfied, while 25% are completely dissatisfied.
CONCLUSION
 CONCLUSION

Agriculture is the heart of the Indian economy pockets & Farmers play a
vital role in uplifting millions of lives. The value paid by consumers
never goes directly to the farmer's pocket. Intermediaries like dealers,
transporters & carriers bought vegetables or fruit at cheap rates from
farmers and sold us at an alarming rate. The end terminals or level of this
supply chain always get perished due to dependencies. We figure out the
loop holes in the entire system & cut down all intermediate money
lenders. The farmer gets the direct profit & consumers also get fresh
veggies & fruits. We provide a platform for farmers to fix the rate of
his/her goods. Further, we provide consultation about the selection of
crops, the use of pesticides & fertilizers, crop diseases etc. I hold the real
time survey & visit farmers and company site or consumers on field.
Farmers' income seems to have increased due to the help of the company.
Farmer's information capacity and skills have increased with help of skill
development programs provided by company. This smooth interaction
between farmers & consumers provide me satisfactory results.
SUGGESTION
 SUGGESTION

1. The company should also encourage and motivate women to

become prominent person in Marketing and Agriculture.
2. Company should expand their Markets.
3. If the company is suitable to provide insurance to the farmers, then
the company should provide it to the farmers.
BIBLIOGRAPHY
 BIBLIOGRAPHY

Search Engine :-
www.google.c
om Websites :-
1) https://en.wikipedia.org/wiki/Farmer#:~:text=Far
ming%20dates%20back%20as%20far,when%20
harvesting%20in%20the%20spring.
2) https://agricoop.nic.in/en
3) https://www.indiabudget.gov.in/economicsurvey
/ebook_es2022/files/basic-
html/page262.html#:~:text=The%20share%20of
%20the%20agriculture,per%20cent%20in%2020

21%2D22.
4) http://www.samarthasfarmersmarket.com/
5) https://docs.google.com/forms/u/0/
cost, in common usage, the monetary value of goods and
services that producers and consumers purchase. In a basic
economic sense, cost is the measure of
the alternative opportunities foregone in the choice of one
good or activity over others. This fundamental cost is usually
referred to as opportunity cost. For a consumer with a fixed
income, the opportunity cost of purchasing a new domestic
appliance may be, for example, the value of a vacation trip not
taken.