Financial Performance Analysis of Farmer-producer Organizations in Anantapuram District of Andhra Pradesh

Authors

  • M. Ravikishore Dr. K.L. Rao Krishi Vigyan Kendra, Garikapadu, Acharya N.G. Ranga Agricultural University, Andhra Pradesh (521 175), India https://orcid.org/0000-0001-5490-0053
  • A. Prudvi Royal Institute of Agri-Business Management, S.V. Agricultural College, Acharya N.G. Ranga Agricultural University, Tirupati, A.P. (517 502), India
  • Seedari Ujwala Rani Agricultural College, Acharya N.G. Ranga Agricultural University, Rajamahendravarm, Andhra Pradesh (533 103), India
  • K. Raghavendra Chowdary Krishi Vigyan Kendra, Acharya N.G. Ranga Agricultural University, Banavasi, Andhra Pradesh (518 323), India
  • B. K. Kishore Reddy Krishi Vigyan Kendra, Acharya N.G. Ranga Agricultural University, Reddipalli, Andhra Pradesh (515 701), India
  • P. Sujathamma District Agricultural Advisory and Transfer of Technology Center, Acharya N.G. Ranga Agricultural University, Kurnool, A.P. (518 003), India
  • N. Nagendra Babu District Agricultural Advisory and Transfer of Technology Center, Eluru, Acharya N.G. Ranga Agricultural University, A.P. (534 005), India
  • P. N. Siva Prasad Dr. K.L. Rao Krishi Vigyan Kendra, Garikapadu, Acharya N.G. Ranga Agricultural University, Andhra Pradesh (521 175), India

DOI:

https://doi.org/10.23910/1.2026.6681

Keywords:

Capital, current, debt–equity, liquidity, membership, profitability, ratio, share

Abstract

The study was conducted during the period from September, 2020 to August, 2022 at Anantapuram district of Andhra Pradesh, India to analyse the financial viability of Farmer-Producer Organizations. This study evaluated the financial performance of five FPOs, namely Tadipatri Horticulture FPO, Sri Venkateswara Swamy FPO, Sri Ramaswamy FPO, Sri Peddamma Thalli FPO, and Narpala Rythunestam FPC in Anantapuram district of Andhra Pradesh, a drought-prone and resource-constrained region. Using audited financial statements from 2018 to 2022, key financial indicators, including current ratio, return on assets (ROA), return on equity (ROE), and debt–equity ratio, were analyzed to assess liquidity, profitability, and leverage. The findings revealed significant variations across the evaluated FPOs. Tadipatri Horticulture FPO exhibited robust profitability (ROA 0.34; ROE 0.19), while Narpala Rythunestam FPC demonstrated strong liquidity (current ratio 2.7) and efficient resource utilization (ROA 0.35). Sri Venkateswara Swamy FPO showed rapid membership and share capital growth (97%) but faced liquidity constraints (current ratio 1.04) and higher debt dependence (DER 0.89). Sri Ramaswamy and Sri Peddamma Thalli FPOs achieved moderate financial progress, though declining liquidity ratios highlighted working capital challenges. Comparative analysis suggested that the financial sustainability of FPOs is closely linked to member mobilization, equity participation, prudent debt management, and market integration. The results emphasized the need for context-specific policy support, particularly in improving access to concessional credit, strengthening value chain linkages and building managerial capacities. Overall, the study highlighted the critical role of financial health in determining the resilience and long-term sustainability of FPOs in semi-arid regions like Anantapuram district of Andhra Pradesh.

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Published

2026-04-16

How to Cite

1.
Ravikishore M, Royal AP, Rani SU, Chowdary KR, Reddy BKK, Sujathamma P, et al. Financial Performance Analysis of Farmer-producer Organizations in Anantapuram District of Andhra Pradesh. IJBSM [Internet]. 2026 Apr. 16 [cited 2026 Jul. 18];17(Apr, 4):01-12. Available from: https://ojs.pphouse.org/index.php/IJBSM/article/view/6681

Issue

Vol. 17 No. Apr, 4 (2026)

Section

Articles

License

Copyright (c) 2026 M. Ravikishore, A. Prudvi Royal, Seedari Ujwala Rani, K. Raghavendra Chowdary, B. K. Kishore Reddy, P. Sujathamma, N. Nagendra Babu, P. N. Siva Prasad

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