MSc

India is one of the world’s largest producer as well as consumer of food products, with
the sector playing an important role in contributing to the development of the economy. Food
processing industry in India is increasingly seen as a potential source for driving the rural
economy as it brings about synergy between the consumer, industry and agriculture. It is one of
the largest industries in India and ranks fifth in terms of production, consumption and export
(ibef, 2016). Kerala ranks third in terms of the largest number of licensed food processing units
after Maharashtra and Tamil Nadu. The state is rich with resources and raw materials such as
fruits and vegetables, cereals, pulses, freshwater etc. Among the districts of Kerala, Palakkad
district, ranks first in cultivation of vegetables (14.85%), fresh fruits (13.68%) and pulses
(32.8%). Major portion of the cultivable area in the district is used for raising food crops i.e.,
86453 hectares, which accounts approximately 41 percent of Kerala’s total cultivable area under
food crops, 212544 hectares (GOK, 2015).Food processing enterprises play a major role in
reducing the wastage of food crops through value addition process and in the generating
employment opportunities to rural fold particularly for women
In this context, the objectives of the present study were framed to evaluate the
performance of women food processing enterprises, to identify the factors that motivate women
food processing entrepreneurs, to analyse the backward, forward and institutional linkage of
women enterprises and to assess the problems faced by women food processing enterprises. The
study area confined to the five taluks of Palakkad district namely Alathur, Palakkad,
Mannarkkad, Chittur and Ottapalam and sample units were taken proportionately from these
taluks. A total sample of 50 actively working food processing enterprises of women (micro
enterprises with at least three years of existence) comprising of 30 units registered under District
Industries Centre (DIC) and 20 units registered under Kudumbashree Mission, were selected. For
the purpose of analysis, the units registered under DIC was termed as Category 1 and under
Kudumbashree Mission was termed as category 2. The primary data were collected by using pretested
structured interview schedule and the analysis was carried out using descriptive statistics,
indices, Chi-square test, Kruskall-Wallis test and Kendall coefficient of concordance test.
Further, SWOC matrix was also formulated from the results of the study.
The performance of women enterprises was assessed through number and type of
products produced, size of the organization, growth of capital, sales turnover and employment
generation. Majority of the units were registered as sole proprietorship business followed by
Joint Liability Groups. Bakery products were the main category of the products produced by the
units and they were using traditional methods of production. Majority were found to be homebased
units. Local markets were figured out as the major market segment and they were mainly
following cost plus pricing. These units lacked proper record maintenance, quality control,
promotion strategies, market study and sales target fixation.
Internal motivational and external motivational factors of women entrepreneurs were
examined by selecting 20 internal motivational factors and 10 external motivational factors(
finalised through pilot study and experts opinion).Index method and Kendall coefficient of
concordance test were used for analysis. The results showed that among internal motivational
factors ‘substitute for male earner’ (I=98.3) and ‘welfare of the family’ (I=98.3) and among
external motivational factors ‘women friendly environment’ (I=99.18) were perceived as highly
motivating. Kendall’s coefficient of concordance for both internal (W = 0.459) and external (W
= 0.439) motivational factors indicate that there was significant difference in the opinion among
entrepreneurs. The analysis revealed that the internal motivation factors (CI=85.14) were more
motivating than external motivational factors (CI=77.41) for women entrepreneurs.
The backward, forward and institutional linkage of the food processing enterprises were
analysed in terms of supply of inputs, market information, linkages with Governmental, Non-
Governmental organizations, training institutions, financial institutions, farmers, farmer
organizations, association of women entrepreneurs, distribution channel members etc.
Percentages, indices, ranking method and Kendall’s co-efficient of concordance were used for
analysing this objective. Findings of the study revealed that own source was the major source of
finance. The category 1 did not have membership in any farmer’s /women entrepreneur
organization and category 2 had membership only in Kudumbashree mission. Majority of
women entrepreneurs were not aware about the grants and subsidy. Half of women entrepreneurs
were attending training programmes to boost their confidence level as well as to widen external
exposure. The units were having good linkage with DIC office, bank, Kudumbashree Mission
and channel members (wholesalers and retailers).The entrepreneurs were receiving adequate
information about price of the product (I=94.6), price of the raw materials (I=94.6) and training
(I=83.6). Updated information on supply, demand and new technology were not available to
them on time. The channel members were disseminating information through informal channels.
Mobile phones were mainly used by financial institutions whereas, Kudumbashree Mission and
DIC were disseminating the information through meetings.
The problems of women entrepreneurs were assessed by index method and Kruskall
Wallis test. Based on index method, marketing problems (I=71) followed by production
(I=63.27) and financial (I=61.5) problems were perceived as ‘mostly felt’ problems by the food
processing units. Whereas gender, legal and technical issues were recognized as ‘moderately felt’
problems. The results of the study point out that marketing problem was the major challenge
faced by the enterprises and it is mainly due to the competition from other units, low price for
the products, lack of demand for the products and frequent price fluctuations.
Based on the results of the study, strength and weakness of women enterprises engaged in
the food processing industry were derived. Domination of middle aged group, similar family
background, internally motivated entrepreneurs, good relationship with channel members and
limited problems like technical, legal and gender were the major strengths identified.
Concurrently, lack of awareness about beneficiary schemes, grants and financial sources, scarcity
of raw materials, lack of promotional methods, lack of quality control methods and lack of
proper monitoring were prioritized as the major weaknesses of enterprises. Results of the
research work pointed out the scope for reducing the cost of production by enhancing proper
linkage with farmers. The research findings also advocate implementation of quality control
system to set up export oriented business ventures. Suggestions were also made to perform
regular and systematic market study in order to address issues like low demand for the products
and high competition from other similar enterprises. However, lack of timely release of fund,
inadequate and lack of updated information on demand and supply and limited awareness
regarding the latest technologies were identified as the major challenges to the successful
running of the enterprise. Therefore, proper and regular monitoring of all the units registered
under District Industries Centre (DIC) and Kudumbashree Mission, co-ordination of Government
level training programmes to create awareness about new beneficiary schemes, financial sources
and, new technologies and ensure that the benefits of the schemes are reaching the real
beneficiaries are some of the possible suggestions to improve the overall performance of the
women enterprises.