MSc

The research entitled "Economic impact of SUBICSHA on SHG members of
Kozhikode district" was conducted in Perambra block of Kozhikode district.
SUBICSHA means Special project for Sustainable Business Development of
Innovative Coconut Based Micro-Enterprises for Holistic Growth and Poverty
Alleviation. The objective of the study was to analyze the economics and marketing
of major coconut products produced by SUBICSHA, to assess the economic impact
of SUBICSHA on SHG members and to study the constraints faced by SUBICSHA
and SHG members. Both primary and secondary data were used for the analysis of
this study. Secondary data regarding SUBICSHA were collected from the
SUBICSHA headquarters located at Nochad in Kozhikode district. Data on
production and price of coconut based products and data on capital investment, fund
distribution, machinery and details of cost incurred in the production and
establishment of the firm were collected for the period 2003-2017. Primary data were
collected from 120 SHG members associated with SUBICSHA. The respondents
were classified into Group I (SHG generating more than 4 lakh per annum), Group
II (SHG generating 2- 4 lakh per annum) and Group III (SHG generating less than
2 lakh per annum).
Financial analysis were done to understand the profitability of four major
products by SUBICSHA viz; 1) coconut oil 2) virgin coconut oil 3) chutney powder
4) sandal soap. Marketing channels of SUBICSHA were identified and cost of
production of four major products was computed. Percentage analysis and paired ttest
were done to identify the economic impact of SUBICSHA on SHG members.
Garret's ranking technique was used to rank the constraints faced by SHG members
associated with SUBICSHA and constraints faced by SUBICSHA were listed out.
Compound annual growth rate was calculated for the quantity produced and average
unit prices over the years (2003-17) to know the growth trend.

Among the 59 products developed by SUBICSHA, 25 products were
exclusively from coconut. All the products analyzed were found to have positive
growth trend for price and quantity produced over the years. Among 4 major products
virgin coconut oil showed the maximum growth of 5.04 per cent per annum for
quantity produced.
The annual turnover of SUBICSHA from all the products produced in 2016-17
was 5.47 Cr. Out of this 83.4 ( 4,56,40,496) and 8.57 ( 47,07,576) per cent were
contributed respectively by coconut products and by products. In the year 2016-2017
SUBICHA producer company received an annual net profit of 8,51,035.
SUBICSHA was initiated with the supporting and revolving fund from
Swarnajayanthi Gram Swarozgar Yojana (SGSY) of GOI, 1999. SGSY scheme
endured 66.5 per cent of the total establishment and developmental cost of the
project.
The cost incurred for the production of 1 kg of coconut oil, virgin coconut oil,
chutney powder and sandal soap were 202.72, 303, 167 and 264 respectively.
Firm sells coconut oil, virgin coconut oil, chutney powder and sandal soap with an
average price of 220, 560, 245 and 270 per kg. The net returns obtained from
four major products of SUBICSHA per year was 15,10,850 with a B-C ratio of 1.02.
From financial analysis, it was found that the net present value of coconut oil,
virgin coconut oil, chutney powder and sandal soap were 85,25,413, 9,64,523,
1,21,009 and 2,81,754 respectively and benefit cost ratios of these products were
respectively 1.50, 1.10, 1.24 and 1.12. The estimated internal rate of return of
coconut oil, virgin coconut oil, chutney powder and sandal soap were 44.70, 16.61,
26.27 and 20.39 per cent respectively.
SUBICSHA had only two channels for marketing all its products. More than 90
per cent of the SUBICSHA products were sold through SUBICSHA outlets itself.

Less than 10 per cent of the quantity sold through other retailer shops. SUBICSHA
had a high marketing efficiency due to its direct selling pattern in the market.
Economic impact of SUBICSHA on SHG members was analysed based on
before and after status using paired t-test. It was found that the income levels, overall
expenditure pattern, saving habit, borrowing power and asset creation of SHG
members were significantly improved after joining SUBICSHA.
Garrett ranking technique was used to rank the major constraints faced by the
SHG members associated with SUBICSHA. In constraints related to participation in
SHGs, weak financial status of the SHGs was the prominent constraint faced by
Group I and III while lack of stability and unity among members were ranked as first
constraint by Group II. In constraints related to participation in SUBICSHA,
inadequate technical training was ranked as first by Group I (high income generating
SHGs) members while wage problem was ranked first by Group II (middle income
generating SHGs) and Group III(low income generating SHGs) members. Regarding
socio economic constraints, benefit sharing problem was given as first rank by Group
I member while low returns was given as first rank by Group II and Group III
members.
Among the constraints faced by SUBICSHA, coordination of more than 522
SHG groups, inefficient handling of the technology, unavailability of raw material
(coconut) were the prominent constraints in formation, developmental and nurturing
stages respectively.
Summing up, it can be concluded that SUBICSHA as a women empowerment
and poverty alleviation programme was successfully implemented in Kozhikode
district and SUBICSHA had significant economic impact on SHG members
associated with it. Hence such initiatives may be replicated and promoted in the other
districts of Kerala.