AWARENESS LEVEL OF CRYPTOCURRENCY AMONG PEOPLE IN

KANNUR DISTRICT IN KERALA

A PROJECT REPORT

Submitted by

ALEN BAIJU DB20BR0020

ALNA.T.V DB20BR0033
ATHUL SHIJU DB20BR0024
SHONIMA .V.T DB20BR0010

Under the supervision of

Mrs. NEETHU A.E

In partial fulfilment for the award of Bachelor degree in

COMMERCE

DON BOSCO ARTS AND SCIENCE COLLEGE

OF KANNUR UNIVERSITY

MARCH 2023
 KANNUR UNIVERSITY

BONAFIDE CERTIFICATE

Certified that this project report “AWARENESS LEVEL OF CRYPTOCURRENCY

AMONG PEOPLE IN KANNUR DISTRICT IN KERALA” is the bonafide work of
ALEN BAIJU, ALNA.T.V, ATHUL SHIJU & SHONIMA.V.T who carried out the
project work under my supervision

SIGNATURE SIGNATURE
Mrs.DEEPTHY JOSEPH Mrs.NEETHU.A.E
HEAD OF THE DEPARTMENT SUPERVISOR

DEPARTMENT OF COMMERCE

DON BOSCO ARTS & SCIENCE COLLEGE

ANGADIKADAVU, KANNUR
 DECLARATION

We, ALEN BAIJU, ALNA T V ,ATHUL SHIJU and SHONIMA V T , hereby declare
that the project work has entitled “AWARENESS LEVEL OF CRYPTOCURRENCY
AMONG PEOPLE IN KANNUR DISTRICT IN KERALA” has been prepared by me
and submitted to Kannur University in partial fulfilment of requirements for the award of
Bachelor of Commerce, is a record of original work done by me under the supervision of
Mrs.NEETHU A.E of Department of Commerce, Don Bosco Arts and Science
College,Angadikadavu.

We also declare that this project work has not been submitted by me fully or partly for the
award of any Degree, Diploma, Title or Recognition before.

Place: Angadikadavu Signature of the Student

Date:
DB20BR0020

DB20BR0033

DB20BR0024

DB20BR0010
 ACKNOWLEDGEMENTS

We sincerely wish to express my deep sense of gratitude to all who helped us to complete
project work. First and foremost, We thank the God Almighty, for his blessings and grace for
the successful completion of the project work.

We acknowledge my gratitude to the Principal, Fr. Francis Karackat, Don Bosco Arts and
Science College, Angadikadavu for giving me an opportunity to undertake this venture.

We also extend my sincere thanks to Mrs.DEEPTHY JOSEPH, Head of the Department

and all other staff members of the Department of Commerce, Don Bosco arts and Science
College, Angadikadavu for making available to us their valuable advice and sincere co-
operation for the completion of study during the academic period.

We also wish to express my thanks to my guide Mrs.NEETHU A.E, Asst. Professor,

Department of Commerce for her valuable advice and timely assistance during the period of
study.

We also wish to express our thanks to our incharge Ms. SHILPA VICHITHRAN, Asst.
Professor, Department of Commerce for her valuable advice and timely assistance during the
period of study.

We express our gratitude to all staff members of department of commerce and all our friends
for their encouragement and co-operation. We are indebted to our beloved parents and other
family members for their great support and care.

ALEN BAIJU

ALNA.T.V
ATHUL SHIJU
SHONIMA.V.T
 CONTENTS

CHAPTER NO. TITLE PAGE NO.

LIST OF TABLE

LIST OF CHART

INTRODUCTION AND DESIGN OF THE

CHAPTER I 1-7
STUDY
THEORETICAL BACKGROUND AND
CHAPTER II 8-18
REVIEW OF LITERATURE
DATA ANALYSIS AND
CHAPTER III 19-33
INTERPRETATION
FINDINGS, SUGGESTION AND
CHAPTER IV 34-35
CONCLUSION

REFERENCE

APPENDIX
 LIST OF TABLES

TABLE NO. TITLE PAGE NO.

3.1 CLASSIFICATION BASED ON GENDER 19

3.2 CLASSIFICATION BASED ON OCCUPATION 20

3.3 PEOPLE HEARD ABOUT CRYPTOCURRENCY 21

3.4 KNOWLEDGE ABOUT CRYPTOCURRENCY 22

PREFERENCES ON TYPES OF
3.5 23
CRYPTOCURRENCIES

3.6 STORAGE OF CRYPTOCURRENCY 24

3.7 USAGE OF CRYPTOCURRENCY 25

3.8 BARRIERS OF USAGE OF CRYPTOCURRENCY 26

3.9 MODES OF USE OF CRYPTOCURRENCY 27

3.10 FACTORS AFFECTING OF CRYPTOCURRENCY 28

3.11 RISKS OF CRYPTOCURRENCY 29

3.12 USES OF CRYPTOCURRENCY 30

3.13 GROWTH OF CRYPTOCURRENCY 31

POSITIVE IMPACTS OF CRYPTOCURRENCY IN

3.14 32
INDIAN ECONOMY

3.15 MISCONCEPTIONS ABOUT CRYPTOCURRENCY 33

 LIST OF CHART

CHART NO. TITLE PAGE NO.

3.1 CLASSIFICATION BASED ON GENDER 19

3.2 CLASSIFICATION BASED ON OCCUPATION 20

3.3 PEOPLE HEARD ABOUT CRYPTOCURRENCY 21

3.4 KNOWLEDGE ABOUT CRYPTOCURRENCY 22

PREFERENCES ON TYPES OF
3.5 23
CRYPTOCURRENCIES

3.6 STORAGE OF CRYPTOCURRENCY 24

3.7 USAGE OF CRYPTOCURRENCY 25

3.8 BARRIERS OF USAGE OF CRYPTOCURRENCY 26

3.9 MODES OF USE OF CRYPTOCURRENCY 27

3.10 FACTORS AFFECTING OF CRYPTOCURRENCY 28

3.11 RISKS OF CRYPTOCURRENCY 29

3.12 USES OF CRYPTOCURRENCY 30

3.13 GROWTH OF CRYPTOCURRENCY 31

POSITIVE IMPACTS OF CRYPTOCURRENCY IN

3.14 32
INDIAN ECONOMY
MISCONCEPTIONS ABOUT
3.15 33
CRYPTOCURRENCY
1.1 INTRODUCTION

The world is growing and expanding rapidly; Internet has made the world a different place
and has ensured that the world of information and business is available to its user at a press of
a button. The Internet has disrupted the old means of communication and transfer of ideas,
money, and business. The Internet is therefore known as one of the disruptive technologies
that has shaken the world. We order food, groceries, and other items of needs without leaving
our homes or offices as we can buy them online with the help of E-Commerce sites. We also
pay them online by using our debit or credit card and sometimes other wallets like the Paytm
etc. Besides this, a large part of the world is also transacting money with the aid of virtual
currencies, which called Crypto currencies.

Cryptocurrency does not exist in physical form (like paper money) and is typically not issued
by a central authority. Cryptocurrencies typically use decentralized control as opposed to
a central bank digital currency (CBDC). When a cryptocurrency is minted, or created prior to
issuance, or issued by a single issuer, it is generally considered centralized. When
implemented with decentralized control, each cryptocurrency works through distributed
ledger technology, typically a blockchain, that serves as a public financial transaction
database. Traditional asset classes like currencies, commodities, and stocks, as well as
macroeconomic factors, have modest exposures to cryptocurrency returns.

These tokens or coins are encrypted online for safety and are a medium of exchange designed
to use cryptography for its secured transfer or transactions and to ensure the authenticity of
the new currencies. Crypto currencies are money worth virtual currencies which are stored in
E-Wallets and transmitted online, securely, and anonymously using the Internet, on Peer-to-
Peer basis within seconds.Cryptocurrency is a digital currency which is created for the
purpose of transactions as a normal currency. Cryptocurrency adoption has seen some huge
spikes in the last few years. It has been different theories and conspiracies about crypto‟s
effect in short and long-term adoption. In the meantime, cryptocurrency market has also
increased and new forms of usage of crypto have been implemented. People pouring million
into cryptocurrency and it is safe to say that most people have some percentage of their
portfolio invested in crypto. Increased attention for the industry is followed by increased
adoption and countries also more well-known companies thinking over accepting
cryptocurrency as a method of payment. Many companies hold a fair share of crypto such as

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Bitcoin in their investment sheet, such as Tesla and Micro Strategy. In recent years, it has
been inevitable to avoid debates about cryptocurrency and regulation of that matter among
regular people and Politiscience. People‟s conversation surrounds investment, and the
government debate includes investment strategies as well as regularity concerns. Institutional
adoption of the cryptocurrency made a mark that a cryptocurrency is a form of technology
there available for the long term and more adoption will be added in near future

It uses Cryptography and Block chain technology to secure its exchanges and limit the
production of a particular type of cryptocurrency and keep track of each transaction in whole
network. Till here, we need a particular count of cash printed or minted by the Government
and it will be kept in a bank through which we carry out all our transactions, which is a form
of centralized system but now we have gone one step ahead and Decentralized form of
currency has emerged which is being used in transactions for various purposes, known as
Cryptocurrency.The Cryptocurrency laden with so much new age technologies and a huge
market presence all over the world, but still, even after a decade of its existence, it has not
attained an established image as a new age currency system among majority of the countries
in the world and people are still skeptical about its worth. Even though greater number of
countries coming forward to regularise its use in day-to-day business transactions, some
countries are regulating its use as part of financial investment as digital asset by devising
rules and regulations but still countries like India and China are not showing any friendly
stance towards the cryptocurrencies neither in form of currency nor as investment tool.

However, the rise and fall of cryptocurrency usage is depended on different reasons. There
has been some fast phase adoption of crypto in some geographical areas and some slow
adoption in others. What that depends on can be a factor of different reasons. First, we can
refer to a different method of using cryptocurrency and why it exists. Crypto has been
invented by Satoshi Nakamoto in 2008, who has tried to solve the inflation problem and
accessibility of peer-2-peer transaction with Bitcoin. Later cryptocurrency tackled to reduce
the transaction fees of payment systems in the unbanked world.In 1983,
American cryptographer David Chaum conceived of a type of cryptographic electronic
money called ecash. Later, in 1995, he implemented it through Digicash, an early form of
cryptographic electronic payments. Digicash required user software in order to withdraw
notes from a bank and designate specific encrypted keys before it can be sent to a recipient.
This allowed the digital currency to be untraceable by a third party.

2
In 1996, the National Security Agency published a paper entitled How to Make a Mint: the
Cryptography of Anonymous Electronic Cash, describing a cryptocurrency system. The paper
was first published in an MIT mailing list and later in 1997 in The American Law Review. In
1998, Wei Dai described "b-money", an anonymous, distributed electronic cash system.
Shortly thereafter, Nick Szabo described bit gold. Like Bitcoin and other cryptocurrencies
that would follow it, bit gold (not to be confused with the later gold-based exchange BitGold)
was described as an electronic currency system which required users to complete a proof of
work function with solutions being cryptographically put together and published.In January
2009, Bitcoin was created by pseudonymous developer Satoshi Nakamoto. It used SHA-256,
a cryptographic hash function, in its proof-of-work scheme. In April 2011, Namecoin was
created as an attempt at forming a decentralized DNS. In October 2011, Litecoin was released
which used scrypt as its hash function instead of SHA-256. Peercoin, created in August 2012,
used a hybrid of proof-of-work and proof-of-stake. Cryptocurrency has undergone several
periods of growth and retraction, including several bubbles and market crashes, such as in
2011, 2013-2014–15, 2017-2018 and 2021–2023. On 6 August 2014, the UK announced
its Treasury had commissioned a study of cryptocurrencies, and what role, if any, they could
play in the UK economy. The study was also to report on whether regulation should be
considered. Its final report was published in 2018, and it issued a consultation on cryptoassets
and stablecoins in January 2021. In June 2021, El Salvador became the first country to accept
Bitcoin as legal tender, after the Legislative Assembly had voted 62–22 to pass a bill
submitted by President Nayib Bukele classifying the cryptocurrency as such. In August
2021, Cuba followed with Resolution 215 to recognize and regulate cryptocurrencies such as
Bitcoin. In September 2021, the government of China, the single largest market for
cryptocurrency, declared all cryptocurrency transactions illegal. This completed a crackdown
on cryptocurrency that had previously banned the operation of intermediaries and miners
within China. On 15 September 2022, the world second largest cryptocurrency at that
time, Ethereum transitioned its consensus mechanism from proof-of-work (PoW) to proof-of-
stake (PoS) in an upgrade process known as "the Merge". According to the Ethereum
Founder, the upgrade can cut Ethereum's energy use by 99.9% and carbon-dioxide emissions
by 99.9%.On 11 November 2022, FTX Trading Ltd., a cryptocurrency exchange, which also
operated a crypto hedge fund, and had been valued at $18 billion, filed for bankruptcy. The
financial impact of the collapse extended beyond the immediate FTX customer base, as
reported, while, at a Reuters conference, financial industry executives said that "regulators
must step in to protect crypto investors." Technology analyst Avivah Litan commented on the

3
cryptocurrency ecosystem that "everything...needs to improve dramatically in terms of user
experience, controls, safety, customer service."

At present, India neither prohibits nor allows investment in the cryptocurrency market. In
2020, the Supreme Court of India had lifted the ban on cryptocurrency, which was imposed
by the Reserve Bank of India. Since then, an investment in cryptocurrency is considered
legitimate, though there is still ambiguity about the issues regarding the extent and payment
of tax on the income accrued thereupon and also its regulatory regime. But it is being
contemplated that the Indian Parliament will soon pass a specific law to either ban or regulate
the cryptocurrency market in India. Expressing his public policy opinion on the Indian
cryptocurrency market to a well-known online publication, a leading public policy lawyer
and Vice President of SAARCLAW (South Asian Association for Regional Co-operation in
Law) Hemant Batra has said that the "cryptocurrency market has now become very big with
involvement of billions of dollars in the market hence, it is now unattainable and
irreconcilable for the government to completely ban all sorts of cryptocurrency and its trading
and investment".He mooted regulating the cryptocurrency market rather than completely
banning it. He favoured following IMF and FATF guidelines in this regard.

1.2 STATEMENT OF THE PROBLEM

The Cryptocurrencies can be utilized just like our traditional currency for transaction purpose
but still the Regulatory Authority as well as Government are skeptical about its use. It is
almost a decade that Cryptocurrencies are existing all over world but still its status has not
been identified as whether it will ever attain the actual currency status or remain as a part of
investment portfolio. People are also not much aware about the worth of cryptocurrency and
mostly they perceive it as illegal means. The purpose of the study is to examine the
awareness level of people on Cryptocurrency in Kannur District of Kerala.

1.3 SIGNIFICANCE AND SCOPE OF STUDY

As Cryptocurrency is a digital currency which has not been perceived as legal means of
transaction for day-to-day activities till now in majority of the countries in the world. In India
too, it has not been taken positively by the Government or Regulatory Authority, as currently
RBI has issued notice to ban any transaction related to Cryptocurrency through any bank in
the country. So, the study of its awareness and perception among people which is mainly

4
based in Kannur District of Kerala will give some insight on how people have perceived its
presence in our own State. So, this study will reflect the overall perception of people towards
Cryptocurrency. The samples under the study were employed people in various
public/private/educational institutions, Business community, unemployed categories and
students. As survey was done through Google Survey Form, so it was restricted to the people
who have online connectivity.

1.4 OBJECTIVES OF STUDY

 To study the awareness of people towards Cryptocurrency

 To understand the factors investing in cryptocurrency
 To find out the challenges and issues faced by cryptocurrency.

1.5 RESEARCH METHODOLOGY

In common words research means to search for knowledge. One can also define research
as a scientific and systematic search forinformation on a specific topic. In fact, research is
an art of scientific investigation. Thus, research methodology is the way to systematically
solve the research problem. It describes the procedure which has been used in the
research.

1.5.1 RESEARCH DESIGN

Research Design is a set of methods and procedures used in collecting and analysing
measures of the variables specified in the problem research. The present study is descriptive
in nature.

1.5.2 POPULATION

The total number of items or things in a particular equity is known as population. Here the
population is infinite that means the population cannot be measured. The population of the
study is entire Kannur district

1.5.3 SAMPLING TECHNIQUE

The Sampling is mainly convenience sampling. The questionnaire was distributed specially to
working class community, business & students and their responses were collected which

5
formed the basis of study. As the questionnaire was in Google Survey Form, so it was easy to
reach to different sampling units

1.5.4 SAMPLE SIZE

Sample size is the number of persons chosen for data collection. The number of respondents
selected for the study is 45.

1.5.5 COLLECTION OF DATA

A. Primary data: Questionnaire was used for primary data

B. Secondary data: Secondary data are already collected and analysed by some other
persons for their own use and later the same data are used by another person. These were
collected from journals, books related to the topic and websites etc.

1.5.6 TOOLS FOR DATA COLLECTION

Primary data collected through Survey method, by using a structured Questionnaire,

circulated in the form of Google Forms online. The options in each question are multiple
choice.

1.5.7 AREA OF STUDY

This study is conducted with the people who have heard about cryptocurrencies in Kannur
district in Kerala.

1.6 STATISTICAL TOOLS

To analysis and interpret the data collected from different sources are used to graphs methods
for the presentation of necessary data.

1.7 PERIOD OF THE STUDY

The duration of study is from December 2022 to February 2023.

1.8 LIMITATION OF STUDY

 As the survey was circulated through Google Survey Forms, which require internet
connection. So, this study is limited to the internet users only.
 Some of the respondents of sampling units filled the survey without any interest and
knowledge, which lead to sampling error to some extent.
 Cryptocurrency is a global product, but this study is mainly based on the people of
Kannur District of Kerala. So, it will not give clear picture of its adoption at larger
platform as people really want to have this as currency or investment tool.
 The responses may not be accurate.

6
1.9 CHAPTER SCHEME

The chapter is divided into four chapters

Chapter 1: Introduction and design of the study
The chapter deals with introduction, significance of the study, statement of the
problem,objectives, research methodology, period of the study and limitations of the
study
Chapter 2: Theoretical Background and review of literature
Following the introductory chapter, the second chapter deals with theoretical background
and review of literature on this area and other relevant to study.
Chapter 3: Data analysis and interpretation
In connection of the objectives the presentation of data for analysis and interpretations
were don in a systematic manner with necessary tables.
Chapter 4: Findings, suggestions and conclusions
This chapter provides a brief summary of findings, suggestions which drawn on the basis
of result of the study and conclusions.

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2.1 REVIEW OF LITERATURE

Bierer (2016): This paper briefly defines cryptocurrency, explains how it functions in its
various forms, and shows why it would behove lenders to utilize cryptocurrency as collateral.
The paper then examine the various regulatory approaches taken regarding cryptocurrency
within the United States as context for subsequent discussions as to how a secured transaction
utilizing cryptocurrency as collateral might be accomplished, both now and under proposed
amendments or clarifications to Article 9 of the Uniform Commercial Code. The data is
collected from secondary sources. The study concludes that cryptocurrencies represent both a
useful opportunity to lenders and debtors alike, and can be effectively utilized, even under the
current regulatory and legal schemes, as collateral.

Vyas (2017): This research was mainly to find out the awareness about the cryptocurrency,
people‟s preference, their trading preference, advantage, disadvantage and important factors
about cryptocurrency. This study uses exploratory study, and a survey has been used to
collect primary data and 68 respondents were used in final analysis. The study revealed that
cryptocurrencies are indeed a known topic among Indians. After 9 years of inception,
Bitcoins still the most preferred cryptocurrency which means that security and widespread
acceptance is far important than utility and other application of crypto and Blockchain.

Hileman & Rauchs (2017): This research focused on alternative payment systems and
digital assets. The research team collected data from over one hundred cryptocurrency
companies and organizations as well as 30 individual miners participated in one or more of
the four surveys. The findings of the research shown that the user adoption of various
cryptocurrencies has really taken of, with billions in market cap and millions of wallets
estimated to have been „active‟ in 2016. Second, the cryptocurrency industry is both
globalized and localized, with borderless exchange operations, as well as geographically
clustered mining activities. Third, the industry is becoming more fluid. Fourth, issues of
security and regulatory compliance are likely to remain prevalent for years to come.

Catania & Grassi (2017): This paper studies the behaviour of cryptocurrencies financial
time-series of which Bitcoin is the most prominent example. The dynamic of those series
quite complex displaying extreme observations, asymmetries, and several nonlinear
characteristics which are difficult to model. They develop a new dynamic model able to
account for long-memory and asymmetries in the volatility process as well as for the presence
of time-varying skewness and kurtosis. The empirical application carried out on 606

8
cryptocurrencies. Results are robust when considering different level of market capitalization
and forecast horizon. Their suggestion for investors and risk managers is to implement a
robust specification with the inclusion of time-varying skewness.

Mazikana (2018):The study sought to analyse the impact of cryptocurrencies in Zimbabwe:

an analysis of bitcoin. The objective of the study was to gain an understanding of Bitcoins
used by banks in Zimbabwe; to find out if bitcoin can solve liquidity crunch; ascertain the
factors that influence the adoption of Bitcoins by banks. The study used primary data which
was collected through use of questionnaires with respondents were from selected sample of
banks in Zimbabwe such as CBZ, Stewart bank and Cabs. The sample size was fifty. The
study concluded that there are many meanings attached to cryptocurrency, it is beneficial to
adopt cryptocurrency and there are many challenges faced in adopting cryptocurrency. The
study recommended that banks need to adopt cryptocurrency and banks should enhance
cryptocurrency.

Jani (2018): The paper is aimed to measure the spread of cryptocurrency use and analysis the
way in which 21 different countries have responded in terms of regulation and legislation
towards cryptocurrency and its impact on various laws in India in order to regulate it. A pilot
study has been conducted in march2018 to collect data of different aspects of cryptocurrency.
The survey questionnaire involved 21 questions and collect data from 45 multinational
internet users and most of them where Indians. The paper reveals that there many concerns,
challenges, and issues are existing in many cryptocurrency platforms. Until cryptocurrency is
being well regulated and controlled, users need to take extra precautions of using such using
money and it has a promising future.

Rahman, Jasim, & Dawood (2018): This research paper tries to find the status of
cryptocurrency in the eye of law tries to define it and found that it is not a currency or legal
tender as per Indian legislation however it, use as goods. The data has been collected from
various secondary sources like journals, research papers etc. The objective of the paper is to
find the exact status of cryptocurrency in the light of legislation and literature review. The
paper concluded that the cryptocurrency may be considered as „goods. It can be transferred of
purchased or sold anywhere in India and in the world easily.

Kumar V V & Swathy(2019):This is a conceptual paper that tries to study the different
aspects of cryptocurrencies, starting with their history, types, its working, advantages and
disadvantages, challenges and opportunities. The objective is to understand the concept of

9
cryptocurrency, its working, advantages, disadvantages and opportunities in India. This paper
is purely based on secondary data referring to various journals, newspapers, articles, websites
and reports. Results showed that cryptocurrency can bring more positive changes to e-
Business and e-Payment sector. Many concerns, challenges and issues are existing in many
cryptocurrency platforms. Until cryptocurrency is being well regulated and controlled, users
need to take extra precautions of using such virtual money. So, the lack of legislations is
considered as the main concern in cryptocurrency systems.

Jaideep & Prashanth Jyoty (2019):The study is focused on assessing the role and impact of
Bitcoin. As India is in the technical era, techno-Indians speak, invest, and possess Bitcoin.
This paper is an outcome of an exploratory research on the role of Bitcoin and its future in the
Indian economy. The study answers the question “Is Bitcoin boon or bane in India”. The
analysis has been done through secondary data to answer the quarries related with bitcoins.
The study revealed that Cryptocurrency has potential to replace the traditional monetary
system. In order to adopt this phase of Cryptocurrency it must first evolve and accept a secure
network of currency exchange. This will help Indians to reach the next platform of e-
commerce.

2.2 THEORETICAL BACKGROUND

A cryptocurrency (or crypto currency or crypto for short) is a digital asset designed to work
as a medium of exchange wherein individual coin ownership records are stored in a ledger
existing in a form of computerized database using strong cryptography to secure transaction
records, to control the creation of additional coins, and to verify the transfer of coin
ownership. It typically does not exist in physical form (like paper money) and is typically not
issued by a central authority. Cryptocurrencies typically use decentralized control as opposed
to centralized digital currency and central banking systems. When a cryptocurrency is minted
or created prior to issuance or issued by a single issuer, it is generally considered centralized.
When implemented with decentralized control, each cryptocurrency works through
distributed ledger technology, typically a blockchain, that serves as a public financial
transaction database.

Bitcoin, first released as open-source software in 2009, is the first decentralized

cryptocurrency. Since the release of bitcoin, other cryptocurrencies have been created.

However, the interest is not represented in the same amount in all countries. Bitcoin as the
first fully functional cryptocurrency has solved the problem of double-spending and made it

10
possible to consider bitcoin as a form of payment. But the idea of the Bitcoin invention as it
is mentioned in the bitcoins white paper is deflationary and in time would work as a hedge
against inflation (Bitcoin Whitepaper, 2008). It has not been proven yet that Bitcoin could be
used as a hedge against inflation, but the main idea of many other cryptocurrencies invented
after Bitcoin is to be used as a hedge fund. Later, other cryptocurrencies such as Ethereum,
Cardano, Solana etc. This cryptocurrency represents the technology to improve digital money
and global payment by offering tokens to its users. These cryptos made it possible for
anyone, anywhere with access to the internet to start a financial payment system which led to
more people joining the crypto community. The downside of cryptocurrency decentralization
is the scams (Ethereum Whitepaper 2014). So, Cryptocurrency being a form of payment in
purely an empirical question, thus, it fills all criteria as form of payment system, but it could
still have a long road to go as similar as cash transformation to debit and credit payment. And
in our paper, we will use access to financial system to determine effect of current payment
system on adoption of cryptocurrency

WORKING OF CRYPTOCURRENCY
Transactions are sent between peers using software called “cryptocurrency wallets.” The
person creating the transaction uses the wallet software to transfer balances from one account
(AKA a public address) to another. To transfer funds, knowledge of a password (AKA a
private key) associated with the account is needed. Transactions made between peers are
encrypted and then broadcast to the cryptocurrency‟s network and queued up to be added to
the public ledger. Transactions are then recorded on the public ledger via a process called
“mining”. All users of a given cryptocurrency have access to the ledger if they choose to
access it, for example by downloading and running a copy of the software called a “full
node” wallet (as opposed to holding their coins in a third party wallet like Coin base). The
transaction amounts are public, but who sent the transaction is encrypted (transactions are
pseudo-anonymous). Each transaction leads back to a unique set of keys. Whoever owns a set
of keys, owns the amount of cryptocurrency associated with those keys (just like whoever
owns a bank account owns the money in it). Many transactions are added to a ledger at once.
These “blocks” of transactions are added sequentially by miners. That is why the ledger and
the technology behind it are called “block chain”. It is a system to transfer and store data or
information that is generated while transacting in a cryptocurrency.

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TYPES OF CRYPTOCURRENCIES

Cryptocurrency is designed to work as a medium of exchange. The number of

cryptocurrencies available over the internet is over 1600 and growing. A new cryptocurrency
can be created at any time. Some of the cryptocurrencies recently used are bitcoin, Ethereum,
tether, Litecoin etc.

Bitcoin (BTC):

One of the most known currencies, Bitcoin is considered an original cryptocurrency.Using

blockchain technology, Bitcoin allows users to make transparent peer-to-peer transactions.
Whileeveryone can see the transaction, only the owner of that Bitcoin can decrypt it with a
“private key” that is given to each owner. Unlike a bank, there is no central authority figure
in the Bitcoin. Bitcoin users control the sending and receiving of money, which allows for
anonymous transactions to take place throughout the world. Bitcoin has become a fixture in
today‟s modern society, a source of innovation and mystery, and has begun to change the
way we think about currency. Because of Bitcoin‟s success, many
modern cryptocurrencies are simply variations on the Bitcoin framework. These Bitcoin
derivatives are referred to as Altcoins. By understanding the cryptocurrency framework,
through analysis of Bitcoin, examiners will be capable of understanding artifacts in a wide
range of cryptocurrencies.

Litecoin (LTC):

Like other cryptocurrencies, Litecoin is a peer-to-peer cryptocurrency and open source-

source software project released under the MIT/X11 license. Its creation and transfer are
based on an open-source cryptographic protocol and it is completely decentralized. Litecoin
is different in some ways from Bitcoin. A few differences between these digital currencies
are: The Litecoin network aims to process a block every 2.5 minutes but Bitcoin takes 10
minutes. This allows Litecoin to have faster transaction confirmation.

The improved transaction speed was meant to prove to merchants that they no longer had to
be frustrated by Bitcoin‟s long settlement time. Instead, they could accept Litecoin and settle

12
payments faster and, therefore, conduct business more quickly and at speeds more on par
with other digital payment methods.

Ethereum (ETH):

It is an open-source platform based on blockchain technology. While tracking ownership of

digital currency transactions, Ethereumblockchain also focuses on running the programming
code of any decentralized application, allowing it to be used by application developers to pay
for transaction fees and services on the Ethereum network.

Ethereum is a decentralized blockchain platform that establishes a peer-to-peer network that

securely executes and verifies application code, called smart contracts. Smart contracts allow
participants to transact with each other without a trusted central authority.

Tether(USDT):

Tether is a type of cryptocurrency, that is designed to maintain a stable value that is pegged to
the US dollar. It is known as stable coin because its value is relatively stable as compared to
other cryptocurrency, which can experience significant price fluctuations.

Tether is described as a stablecoin because it was originally designed to be valued at USD

$1.00. Tether Limited has stated that it maintains USD $1 of asset reserves for each USD₮ 1
issued, but has been fined by regulators for failing to do this and has failed to present audits
showing sufficient asset reserves.

ADVANTAGES OF CRYPTOCURRENCY:
Protection from inflation
Inflation has caused many currencies to get their value declined with time. Almost every
cryptocurrency, at the time of its launch, is released with a fixed amount. The source code
specifies the amount of any coin; like, there are only 21 million Bitcoins released in the
world. So, as the demand increases, its value will increase which will keep up with the
market and, in the long run, prevent inflation.

13
Self-governed and managed
Governance and maintenance of any currency is a major factor for its development. The
cryptocurrency transactions are stored by developers/miners on their hardware, and they get
the transaction fee as a reward for doing so. Since the miners are getting paid for it, they keep
transaction records accurate and up to date, keeping the integrity of the cryptocurrency and
the records decentralized.

Secure and private

Privacy and security have always been a major concern for cryptocurrencies. The blockchain
ledger is based on different mathematical puzzles, which are hard to decode. This makes a
cryptocurrency more secure than ordinary electronic transactions. Cryptocurrencies, for better
security and privacy, use pseudonyms that are unconnected to any user, account or stored
data that could be linked to a profile.
Currency exchanges can be done easily
Cryptocurrency can be bought using many currencies like the US dollar, European euro,
British pound, Indian rupee, or Japanese yen. With the help of different cryptocurrency
wallets and exchanges, one currency can be converted into the other by trading in
cryptocurrency, across different wallets, and with minimal transaction fees.

Decentralized –
A major advantage of cryptocurrency is that they are mainly decentralized. A lot of
cryptocurrencies are controlled by the developers using it and the people who have a
significant amount of the coin, or by an organization to develop it before it is released into the
market. The decentralization helps keep the currency monopoly free and in check so that no
one organization can determine the flow and the value of the coin, which, in turn, will keep it
stable and secure, unlike fiat currencies which are controlled by the government.
Cost-effective mode of transaction
One of the major uses of cryptocurrencies is to send money across borders. With the help of
cryptocurrency, the transaction fees paid by a user is reduced to a negligible or zero amount.
It does so by eliminating the need for third parties, like VISA or PayPal, to verify a
transaction. This removes the need to pay any extra transaction fees.

14
A fast way to transfer funds
Cryptocurrencies have always kept itself as an optimal solution for transactions.
Transactions, whether international or domestic in cryptocurrencies, are lightning-fast. This is
because the verification requires very little time to process as there are very few barrier.
Transparent
With the decentralized nature of blockchains, one can view the money transfer transactions by simply
using blockchain explorer on the platform to track live transfers. This open and transparent system is a
relief among investors and is corruption-free.

DISADVANTAGES OF CRYPTOCURRENCY:
Can be used for illegal transactions:
Since the privacy and security of cryptocurrency transactions are high, it is hard for the
government to track down any user by their wallet address or keep tabs on their data. Bitcoin
has been used as a mode of exchanging money in a lot of illegal deals in the past, such as
buying drugs on the dark web. Cryptocurrencies are also used by some to convert their
illicitly obtained money through a clean intermediary, to hide its source.
Data losses can cause financial losses:
The developers wanted to create virtually untraceable source code, strong hacking defences,
and impenetrable authentication protocols. This would make it safer to put money in
cryptocurrencies than physical cash or bank vaults. But if any user loses the private key to their
wallet, there is no getting it back. The wallet will remain locked away along with the number of
coins inside it. This will result in the financial loss of the user.
Decentralized but still operated by some organization:
The cryptocurrencies are known for its feature of being decentralized. But the flow and
amount of some currencies in the market are still controlled by their creators and some
organizations. These holders can manipulate the coin for large swings in its price. Even
hugely traded coins are susceptible to these manipulations like Bitcoin, whose value doubled
several times in 2017.
Some coins not available in other fiat currencies:
Some cryptocurrencies can only be traded in one or a few fiat currencies. This forces the user
to convert these currencies into one of the major currencies, like Bitcoin or Ethereum first and
then through other exchanges, to their desired currency. This applies to only a few

15
cryptocurrencies. By doing this, the extra transaction fees are added in the process, costing
unnecessary money.

Adverse Effects of mining on the environment:

Mining cryptocurrencies require a lot of computational power and electricity input, making it
highly energy intensive. The biggest culprit in this is Bitcoin. Mining Bitcoin requires
advanced computers and a lot of energy. It cannot be done on ordinary computers.
Susceptible to hacks:
Although cryptocurrencies are very secure, exchanges are not that secure. Most exchanges
store the wallet data of users to operate their user ID properly. This data can be stolen by
hackers, giving them access to a lot of accounts. After getting access, these hackers can easily
transfer funds from those accounts.
No refund or cancellation policy:
If there is a dispute between concerning parties, or if someone mistakenly sends funds to a
wrong wallet address, the coin cannot be retrieved by the sender. This can be used by many
people to cheat others out of their money. Since there are no refunds, one can easily be
created for a transaction whose product or services they never received.

CHALLENGES/ ISSUES OF CRYPTOCURRENCIES

The form of cryptocurrencies is not free from some financial problems and security concerns.
I analyzed several studies and cryptocurrency platforms and observed some cryptocurrency
selling forums in order to explore challenges and issues that are exist in such virtual
phenomenon. The main problems and impacts of cryptocurrency can include:

Government Regulation:

Indian government stand towards Bitcoin is the prime challenge for its growth. The future of
cryptocurrency is doubtful in India for now. In 2019 RBI announced that cryptocurrency will
not be considered as a legal tender. Because it is completely decentralized.

Security threats:

Hackers and malicious users can create as much as they want from virtual currency if they
break the system and know the method of virtual currency creations. This will lead to the

16
ability to create fake virtual currency or steal virtual currency by just changing the accounts
balances.

Collapse concerns in cryptocurrency systems:

Unlimited issuing of virtual currency in the variety virtual communities will lead to
economic problems since its issuing is not based on the demand and supply. It is possible for
some providers such as Second Life to issue unlimited Linden Dollars and increase their
virtual items prices in order to gain more real revenues. On the other hand, it will suffer from
inflation and economic issues leading to collapse in the virtual currency system.

Unknown identity risks:

Since creating an account in most of virtual currency platforms such as social games and
social networks is not authenticated, financial transactions cannot be monitored very well.
Gamers and users can create more than one account with unknown identities and use them for
illegal transactions. There is no way to recognize the source of creating or cashing out the
virtual currencies. This leads to inability to track the transactions in case of money laundering
suspicion. Moreover, unknown identity will enable criminals to get paid with virtual currency
for their crimes.

Black market for cryptocurrency:

The financial position of some social games such as Second Life and World of Warcraft are
mature enough to create black market for buying and selling their virtual currency. The
increasing popularity of virtual currency in online environment has led to a thriving black
market for trading virtual currency with real money. By observing several social games‟
forums, some fraud cases have been raised and discussed between users.

Negative impact on Indian monetary system:

Cryptocurrency like Bitcoin help users to purchase virtual and real goods and services with
virtual currency in some platforms may reduce the demands on real money. Users will no
longer depend on real money to buy what they want, and they will use virtual money instead.
On the other hand, some platforms enable users to exchange their virtual currency with real
currency and this will increase the demands on real world currency. This demand-supply
fluctuation will negatively affect the real monetary systems.

17
Using for Alleged activities:

Several incidences have occurred stating that Bitcoins have been used for illicit and illegal
activities around the globe like money laundering, black marketing, tax evasion etc.

Human mismanagement in online exchanges:

The people running unregulated online exchanges that trade cash for Bitcoins can be
dishonest or incompetent. The only difference is that conventional banking losses are
partially insured for the bank users, while Bitcoin exchanges have no insurance coverage for
users.

18
3.1 CLASSIFICATION BASED ON GENDER.

Table 3.1
CLASSIFICATION BASED ON GENDER

Gender Responses Percentage

Male 26 58

Female 19 42

Total 45 100

Source : Primary data

CLASSIFICATION BASED ON GENDER

Male Female

0%

42%

58%

Figure 3.1

Interpretation:
From the above graph, it can be observed that, among all respondents 58% are male, 42% are
female. It is found from the study that male is more aware about cryptocurrency than female.

19
3.2. CLASSIFICATION BASED ON OCCUPATION.

Table 3.2

CLASSIFICATION BASED ON OCCUPATION

Choices No of respondents Percentage

Student 40 90
Self employed 2 4
Salaried job 2 4
Unemployed 1 2
Total 45 100
Source: Primary data

CLASSIFICATION BASED ON OCCUPATION

Student
Self employed
Salaried job
Unemployed

Figure 3.2
Interpretation:
From the above data, it can be interpreted thatStudents are more aware about
cryptocurrencies. Around 90% are students and 4% consists of Self-employed. 4% consists of
Salaried job .

20
3.3 PEOPLE HEARD ABOUT CRYPTOCURRENCY
Table 3.3
PEOPLE HEARD ABOUT CRYPTOCURRENCY

Choices No of Respondents Percentage

Yes 45 100

No 0 0

Total 45 100

Source: primary data

PEOPLE HEARD ABOUT CRYPTOCURRENCY

100%
90%
80%
70%
60%
PEOPLE HEARD ABOUT
50% Yes, 100
CRYPTOCURRENCY
40%
30%
20%
10%
0% No, 0 ,0 ,0
Yes No

Figure 3.3
Interpretation
Among all respondents, 80% know about cryptocurrencies and only 20% do not know about
cryptocurrency.

21
3.4 KNOWLEDGE ABOUT CRYPTOCURRENCY

Table 3.4

KNOWLEDGE ABOUT CRYPTOCURRENCY

No of respondents Percentage

Very familiar 7 15

Not at all familiar 13 30

Slightly familiar 18 40

Moderately familiar 7 15

Total 45 100

Soure:Primary data

KNOWLEDGE ABOUT CRYPTOCURRENCY

40
35
30
25
KNOWLEDGE
20 ABOUT
15 CRYPTOCURRENCY
10
5
0
very familiar not at all slightly familiar moderately
familiar familiar

Figure 3.4
Interpretation:
15% of respondents are much familiar about cryptocurrency,30% are not at all familiar ,40%
are slightly familiar,15% are moderately familiar about cryptocurrency.

22
3.5 PREFERENCES ON TYPES OF CRYPTOCURRENCIES

Table 3.5

PREFERENCES ON TYPES OF CRYPTOCURRENCIES

Types of No of Respondents Percentage

cryptocurrencies

Bitcoin 36 80

Ethereum 4 9

Litecoin 3 7

Tether 2 4

Total 45 100

Source : primary data

PREFERENCES ON TYPES OF
CRYPTOCURRENCIES
Tether

Litecoin

Ethereum

Bitcoin

0 20 40 60 80 100
TYPES OF CRYPTOCURRENCIES

Figure 3.5
Interpretation
From the above graph, Bitcoin is the most preferred cryptocurrency. Among all respondents
36 prefers Bitcoin, 4 prefers Ethereum ,3 prefers Litecoin, 2 chooses Tether.

23
3.6 STORAGE OF CRYPTOCURRENCY.

Table 3.6

STORAGE OF CRYPTOCURRENCY

Storage No of Respondents Percentage

Paper wallets 12 27

Cloud wallets 15 33

Software wallets 13 29

Hardware wallets 5 11

Total 45 100

Source : Primary data

STORAGE OF CRYPTOCURRENCY
Paper wallet Cloud wallet Software wallet Hardware wallet

11%
27%

29%

33%

Figure 3.6
Interpretation
From the above graph, 27% store their cryptocurrency in Paper wallets, 33% store their
cryptocurrency in Cloud wallets, around 29% store their cryptocurrency in Software wallet
and only 11% store their cryptocurrency in Hardware wallets.

24
3.7 USAGE OF CRYPTOCURRENCY

Table 3.7

USAGE OF CRYPTOCURRENCY

Opinions No. Of response Percentage

Yes 15 33

No 10 22

Sometimes 20 45

Total 45 100

Source : Primary Data

USAGE OF CRYPTOCURRENCY

35

30

25

20
USAGE OF CRYPTOCURRENCY
15

10

0
YES NO SOMETIMES

Figure 3.7
Interpretation:
From the above diagram it is clear that 33% of people use cryptocurrency, 22%of people
don‟t use cryptocurrency but whereas only 45% of people use cryptocurrency rarely.

25
3.8 BARRIES FOR USAGE OF CRYPTOCURRENCY

Table 3.8

BARRIES FOR USAGE OF CRYPTOCURRENCY

Opinions No. Of respondents Percentage

Lack of knowledge 9 20

Riskier 10 22

Lack of money 15 33

Other 11 25

Total 45 100

Source:Primary data

BARRIES FOR USAGE OF CRYPTOCURRENCY

35

30

25

20
BARRIES FOR USAGE OF
15 CRYPTOCURRENCY
10

0
Lack of Riskier Lack of Other
knowledge money

Figure 3.8
Interpretation:
20% of people stop using cryptocurrency due to lack of knowledge,22% because it is riskier,
33% due to lackof money and 25% due to other reasons.

26
3.9 MODE OF USE OF CRYPTOCURRENCY

Table 3.9

MODE OF USE OF CRYPTOCURRENCY

Response No of Respondents Percentage

Speculative asset 20 44
Currency 25 56
Total 45 100
Source: Primary data

MODE OF USE OF CRYPTOCURRENCY

25

20

15

10

0
Speculative asset Currency

Speculative asset Currency

Figure 3.9

Interpretation

From the above table and chart, it canbe interpretated that around 56% respondents consider
cryptocurrency as a currency and around 44% consider it as a Speculative asset.

27
3.10. FACTORS AFFECTING OF CRYPTOCURRENCY IN INVESTING

Table 3.10

FACTORS AFFECTING OF CRYPTOCURRENCY IN INVESTING

Response No of response Percentage

Anonymity 8 18

Low transaction cost 10 22

No central authority 12 27

International acceptance 15 33

Total 45 100

Source:Primary data

FACTORS AFFECTING CRYPTOCURRENCY IN

35 INVESTING 33

30 27
25 22
20 18

15
10
5
0
Anonymity low transaction cost No central authority International
acceptance

Figure:3.10

Interpretation:
It can be interpreted that more people consider international acceptance as factor of advantage
of using cryptocurrency and least consider anonymity as an advantage.

28
3.11. RISKS OF CRYPTOCURRENCY

Table 3.11

RISKS OF CRYPTOCURRENCY

Response No.of response Percentage

Theft of data 9 20

System limitations 7 16

Fraudulent offerings of 14 31
cryptocurrency

Manipulative trading of 15 33
cryptocurrency

Total 45 100

Source: Primary data

RISKS OF CRYPTOCURRENCY
35

30

25

20

15

10

0
Theft of data System limitations Fradulent offerings of Manipulative trading of
cryptocurrency cryptocurrency

Figure:3.11
Interpretation

It can be interpreted that manipulative trading of cryptocurrency causes high risk and lower
risk is caused by theft of data.

29
3.12. USES OF CRYPTOCURRENCY

Table 3.12

USES OF CRYPTOCURRENCY

Choices No of Respondents Percentage

Risk from uncertainties 9 20

Investing 14 31

Make profit 12 27

Transferring fund 10 22
globally

Total 45 100

Source: primary data

USES OF CRYPTOCURRENCY

22% 20%

Risk from uncertainties

Investing
Make profit
27.00% 31.00%
Transferring fund globally

Figure 3.12
Interpretation
From the above table and chart it is interpreted that cryptocurrency is more useful for both
investing and making profit. Around 31% and 27% of respondents uses it for investing and
making profit.

30
3.13. GROWTH OF CRYPTOCURRENCY

Table 3.13

GROWTH OF CRYPTOCURRENCY

Choices Count Percentage

Clear and supportive regulations 6 13

Improvement in technology 16 36

Through social media 14 31

Other 9 20

Total 45 100

Source: Primary data

GROWTH OF CRYPTOCURRENCY

40 36
35 31
30
25
20
20
15 13

10
5
0
Clear and Improvement in Through social Other
supportive technology media
regulations

Figure 3.13
Interpretation
It can be interpreted that improvement in technology and through social media has led to the
growth of cryptocurrency

31
3.14. POSITIVE IMPACTS OF CRYPTOCURRENCY IN INDIAN
ECONOMY

Table 3.14

POSITIVE IMPACTS OF CRYPTOCURRENCY IN INDIAN

ECONOMY

Factors No.of response Percentage

Digitalised India 15 33

Increased job opportunity and 12 27

entrepreneurship

Reduction of poverty 4 9

Other 14 31

Total 45 100

Source:primary data

POSITIVE IMPACTS OF CRYPTOCURRENCY IN

INDIAN ECONOMY
35
30
25
20
15
10
5
0
Digitalised India Increased job opportunity Reduction in poverty Other
and entrepreneurship

Figure 3.14
Interpretation

From the above diagram it is interpreted that cryptocurrency has been affected Indian
economy by digitalized Indiaby 33% and by reduction in poverty by 9%.

32
3.15.MISCONCEPTIONS ABOUT CRYPTOCURRENCY

Table 3.15

MISCONCEPTIONS ABOUT CRYPTOCURRENCY

Choices No of Respondents Percentage

Not secure 13 29

Are scam 10 22

It‟s banned 15 33

Other 7 16

Total 45 100

Source:Primary data

MISCONCEPTIONS ABOUT
CRYPTOCURRENCY

Other

its banned

Are scam

Not secure

0 5 10 15 20 25 30 35

Figure 3.15

Interpretation
From the above graph, it can be interpreted that 33% of respondents have misconception
about cryptocurrency that it is illegal,29% as not secure, 22% as scam and others.

33
FINDINGS
From the data analysis and data interpretation, following findings have emerged-

 It is founded that very few people hear or read about cryptocurrency.

 Most of the people slightly prefer cryptocurrency.
 Most of the people prefer Bitcoin.
 Majority of them store cryptocurrency in cloud wallets.
 Majority of the respondents are Male.
 Mostof the respondents are Students.
 People agree that International acceptance is the main factor for investing in
cryptocurrency
 Most of them rarely use cryptocurrency.
 Lack of money is the major barrier for usage of cryptocurrency.
 Most of them consider cryptocurrency as currency.
 People consider that manipulative trading of cryptocurrency is the major risk.
 Most of the people prefer investing in cryptocurrency.
 Improvement in technology has led to the growth of cryptocurrency.
 India being digitalised is the positive impact of cryptocurrency in Indian economy.
 Misconceptions among people that cryptocurrency is banned.

SUGGESTIONS

 India being digitalized, by providing knowledge and education about cryptocurrency

to the people who are unaware would improvise the standards of people.
 Imposing a ban on cryptocurrency would cause a great loss to the present generation
to learn and experience such innovative product. Therefore, its regulation is
justifiable.
 By providing government assistance in investing in cryptocurrency it will play a
major role in investment portfolio.

34
CONCLUSION

From the above findings, it can be concluded that people in general are little bit aware
of the Cryptocurrency and they would like to see it as part of their investment
portfolio as it provides good return. But they are not willing to invest in
Cryptocurrency due to lack of regulation from Government and its regulatory
authorities and due to lack of money. If Government of India and its regulatory
authorities will come forward to regulate its use and transaction in financial market, it
can play a major role in entire investment portfolio. As it is well known that
Cryptocurrency is the product of all new age innovative technologies, and many
countries of the world have already regulated its use in day-to-day business and many
countries are coming forward to regulate its transaction in financial market. So, Indian
Government and its regulatory authority should come forward and take steps to
regulate the transactions of Cryptocurrency as investment option.

35
WEBSITES
 (n.d.). Retrieved from www.unocoin.com

 (n.d.). Retrieved from m.in.investing.com

 (n.d.). Retrieved from in.tradingview.com

JOURNALS

 Bierer, T. (2016). Hashing it out: Problems and concerns relating cryptocurrency used
as Article9 collateral.Journal of law, technology and internet.
 Vyas, D. (2017). AWARENESS ABOUT CRYPTOCURRENCY IN INDIA.
 Hileman, D., &Rauchs, M. (2017). Global Cryptocurrency Benchmarking study
(2017). SSRN.
 Catania, L., & Grassi, S. (2017). Modelling crypto currencies Financial Time-Series.
RESEARCH GATE.
 Mazikana, A. T. (2018). THE IMPACT OF CRYPTOCURRENCIES IN
ZIMBABWE:AN ANALYSIS OF BITCOINS. ZIMBABWE.
 Jani, S. (2018). The growth of cryptocurrency in India: its challenges and potential
impacts on legislation. Parul University. Vadodara: RESEARCH GATE.
 Rahman, D., Jasim, K. M., & Dawood, D. K. (2018). LEGAL STATUS OF
CRYPTOCURRENCY IN INDIA. DEPARTMENT OF COMMERCE. CHENNAI:
INTERNATIONAL JOURNAL OF ENGINEERING AND TECHNOLOGY.
 Kumar V V, D., & Swathy, P. (2019). A study on opportunities and challenges of
cryptocurrency in India with special reference to Bitcoin. KOTTAYAM:
INTERNATIONAL JOURNAL OF RESEARCH AND ANALYTICAL REVIEWS.
 Jaideep, J. P., & Prashanth Jyoty, K. R. (2019). A study on cryptocurrency in India-
boon or bane. JOURNAL OF EMERGING TECHNOLOGIES AND INNOVATIVE
RESEARCH(JETIR).

36
NEWSPAPERS

 Times of India
 Deccan Chronicle
 The Hindu
 The Indian Express
 The Economic Times

37
 QUESTIONNAIRE

1.Your gender?
 Male
 Female
2.Occupation
 Student
 Self-employed.
 Salaried job
 Unemployed
3.Do you know about cryptocurrency?
 Yes
 No
4. How do you classify your knowledge about cryptocurrency?
 Very familiar
 Not at all familiar
 Slightly familiar
 Moderately familiar
5. Which of this do you prefer?
 Bitcoin
 Ethereum
 Litecoin
 Tether
6. Where did you store your cryptocurrency?
 Paper wallets
 Cloud wallets
 Software wallets
 Hardware wallets
7. Currently, do you use cryptocurrency?
 Yes
 No
 Sometimes

38
8. If no, what stops you from investing in cryptocurrency?
 Lack of knowledge
 Riskier
 Lack of money
 Other
9.Do you consider cryptocurrency more like a currency or speculative asset?
 Currency
 Speculative asset
 None
10. What are the factors affecting cryptocurrency in investing?
 Anonymity
 Low transaction cost
 No central authority
 International acceptance
11.What are the risks faced by cryptocurrency?
 Theft of data
 System limitation
 Fraudulent offerings of cryptocurrency
 Manipulative trading of cryptocurrency
12.In what do you think cryptocurrency will be useful?
 Risk from uncertainties
 Investing
 Make profit.
 Transferring fund globally
13. In your opinion which is more important for continuous growth of
cryptocurrency?
 Clear and supportive regulations
 Improvement in technology
 Through social media
 Other

39
14.What are the positive impacts of cryptocurrency in Indian economy?
 Digitalized India
 Increased job opportunity and entrepreneurship
 Reduction of poverty
 Other
15. What are some common misconceptions about cryptocurrency?
 Not secure
 Are scam
 It‟s illegal
 Other

40
 SCOPE AND CHALLENGES OF FISH

FARMING RETAILING WITH SPECIAL REFERENCE

TO IRITTY MUNICIPALITY
A PROJECT REPORT

Submitted by

ABIN BINOY (REG No: DB20BR0014)

ADITHYA AV (REG No: DB20BR0030)

ALBIN DEVASIA (REG No: DB20BR0018)

Under the supervision of

Mrs. NEETHU A.E

In partial fulfilment for the award of bachelor degree in

COMMERCE

DON BOSCO ARTS AND SCIENCE COLLEGE

OF KANNUR UNIVERSIY

MARCH 2023

1
 KANNUR UNIVERSITY

BONAFIDE CERTIFICATE

Certified that this project report “SCOPE AND CHALLENGES OF FISH

FARMING RETAILING WITH SPECIAL REFERENCE TO IRITTY
MUNICIPALITY” is the bonafide work of ABIN BINOY, ADITHYA AV, ALBIN
DEVASIA who carried out the project under my supervision.

SIGNATURE SIGNATURE

Mrs. SHILPA VICHITRAN Mrs. NEETHU A.E

HEAD OF THE DEPARTMENT SUPERVISOR

DEPARTMENT OF COMMERCE
DON BOSCO ARTS & SCIENCE COLLEGE
ANGADIKADAVU

2
 DECLARATION

We ABIN BINOY, ADITHYA AV, ALBIN DEVASIA hereby declare that the
project entitled “SCOPE AND CHALLENGES OF FISH FARMING RETAILING
WITH SPECIAL REFERENCE TO IRITTY MUNICIPALITY” has been
prepared by us and submitted to Kannur University in partial fulfilment of the
requirements for the award of Degree of Bachelor of Commerce, is a record of original
work done by us under the supervision of Asst. Prof. Mrs. NEETHU A.E of
Department of Commerce, Don Bosco Arts and Science College Angadikadavu.

We also declare that this project work has not been submitted by us fully or partly for
the award of any other Degree, Diploma, Title or any other recognition before.

Place: Angadikadavu Signature of the student

Reg No:DB20BR0014
DB20BR0030
DB20BR0018

3
 ACKNOWLEDGEMENTS

We sincerely wish to express our deep sense of gratitude to all who helped us to
complete project work. First and foremost, we thank the God Almighty, for his blessing
and grace for the successful completion of the project work.

We acknowledge our gratitude to the Principal, Rev.Fr.Dr. Francis Karackat SDB,

Don Bosco Arts and Science College Angadikadavu, for giving us an opportunity to
undertake this venture.

We also extend our sincere thanks to Mrs. SHILPA VICHITRAN, Head of the
Department of Commerce and all other staff members of the Department of Commerce,
Don Bosco Arts and Science College, Angadikadavu for making available to us their
valuable advice and sincere co-operation of study during the academic period.

We also wish to express my thanks to guide Mrs. NEETHU A.E. Asst. Professor,
Department of Commerce for her valuable advice and timely assistance during the
period of study.

We express our gratitude to all staff members and department of commerce and all my
friends for their encouragement and co-operation.

We are indebted to our beloved parents and other family members for the great support
and care.

ABIN BINOY

ADITHYA AV

ALBIN DEVASIA

CONTENTS

4
CHAPTER NO. TITLE PAGE NO.

List of Tables

List of Chart

Chapter I Introduction 1-4

Chapter II Theoretical framework 5-16

&
Review of literature
Chapter III Analysis 17-38
&
Interpretation
Chapter IV Findings, suggestions and 39-42
Conclusions

Reference

Appendix

5
 LIST OF TABLES

TABLE NO. TITLE PAGE NO.

3.1 TYPE OF FISH FARMING 19

3.2 BASIC REQUIREMENTS 20

3.3 DURATION OF FISH FARMING 21

3.4 SCOPE AND ADVANTAGE OF FISH FARMING 22

3.5 FACTORS MOTIVATING FISH FARMING 23

3.6 AVERAGE WORKING CAPITAL 24

3.7 AVERAGE MONTHLY INCOME 25

3.8 BASIC REQUIREMENTS 26

3.9 TRADITIONAL WAY 27

3.10 SUBSIDIES 28

3.11 BENEFITS OF FISH FARMING 29

3.12 LEVEL OF SATISFACTON 30

3.13 PROFITABILITY 31

3.14 BEST FISH FRMING FIELD 32

3.15 BEST SEASON 33

3.16 BEST FEED 34

3.17 PROBLEMS IN FISH FARMING 35

3.18 CHALLENGES IN FISH FARMING 36

3.19 DIFFICULTIES IN FISH FARMING 37

3.20 TRAINING PROGRAM 38

6
 LIST OF CHARTS

TABLE NO. TITLE PAGE NO.

3.1 TYPE OF FISH FARMING 19

3.2 BASIC REQUIREMENTS 20

3.3 DURATION OF FISH FARMING 21

3.4 SCOPE AND ADVANTAGE OF FISH FARMING 22

3.5 FACTORS MOTIVATING FISH FARMING 23

3.6 AVERAGE WORKING CAPITAL 24

3.7 AVERAGE MONTHLY INCOME 25

3.8 BASIC REQUIREMENTS 26

3.9 TRADITIONAL WAY 27

3.10 SUBSIDIES 28

3.11 BENEFITS OF FISH FARMING 29

3.12 LEVEL OF SATISFACTON 30

3.13 PROFITABILITY 31

3.14 BEST FISH FRMING FIELD 32

3.15 BEST SEASON 33

3.16 BEST FEED 34

3.17 PROBLEMS IN FISH FARMING 35

3.18 CHALLENGES IN FISH FARMING 36

3.19 DIFFICULTIES IN FISH FARMING 37

3.20 TRAINING PROGRAM 38

7
 CHAPTER 1

INTRODUCTION

8
1.1 INTRODUCTION

This project is undergone to understand the challenges and scope of fish farming. The
study is conducted on the sample Fish Farmers in Iritty Municipality. Fish farming, the
well-known concept, is the most common type of aquaculture. It includes the selective
breeding of fish, either in freshwater or seawater, to produce fish commercially. It is
highly used as it allows to produce a cheap source of protein for the poor and coastal
countries. It is easier to do than other kinds of farming as fish are not care-intensive,
only requiring food and proper water conditions as well as Temperatures. The process
is also less land-intensive as the size of ponds required at present to grow some fish
species. Commercial farming are those fish farming operations whose goal is to
maximize profits, where profits is decreasing due to high volume of fish collection. As
a Result, setting up commercial fish farming business is a must to meet up the
nutritional demand of Indian people. India is blessed with large number of rivers, lakes,
and many natural water resources. So, there are great opportunities for setting up new
career, business, and income source by commercial fish farming in India. So, so in order
to success in area of fish farming, the Farming Farmers Must overcome the challenges
of Fish farming and utilize its Scope wisely.

1.2 STATEMENT OF PROBLEM

Fishing in India contributes over 2 percentage of India’s annual gross domestic product.
Fishing in India Employs about 14.5 million people. Even though the fishing farming
contributes a major percentage to GDP and export, it is facing many challenges now-a-
days. The Fish farming has many scopes. The government also has implemented many
measures, promotion schemes and policies. However there are many advantages to Fish
farmers they are not properly reached or used properly. In this context a study on scope
and challenges of fish farming is required to overcome the challenges and to utilize its
scope properly.

1.3 SIGNIFICANCE OF THE STUDY

The scope of fish farming is very wide and it can contribute great results with a
minimum investment. Fish is a perishable commodity that demands immediate storage
and preservation. Unfortunately, our state lacks such amenities. This study throws
attention to the possibilities of fish farming in sustainable rural development and gives

1
insights into the scope of fish processing. Central Institute of Fisheries Technologies
and the Indian Council of Agriculture Research together and on self-capacity offers
various kinds of fishing and fish processing technology and even the trial production
facility that the common men are not aware of. The present study enquires into that
also. With minimum effort and investment, we can earn a better income through
economically feasible, socially acceptable, and environment-friendly aquaculture
practices which can support them with food security, zero hunger, regular income, and
a better standard of living for the public which ultimately contributes to rural
development.

Value addition programs can create employment opportunities at various levels like its
procurement, pealing, cleaning, processing, packing, preservation, storage, drying,
marketing, refining oil, and other extracts. Not only that, through integrated farming
practices we can cultivate both rice and fish or prawns together thereby achieving food
security and zero hunger. Our technology has been developed so far to achieve rural
development. Adaption to such technologies through skill development can contribute
greater results in developing our society sustainably and equitably.

1.4 SCOPE OF THE STUDY

This project is conducted to identify the scope and challenges faced by the farmers of
retail fish farming. This study aims to look after the scope of maximum production of
fishes for consumption at the lowest cost. The study has been conducted among the
farmers of Iritty Municipality.

1.5 OBJECTIVES OF STUDY

1. To study the challenges of fish farming

2. To analyze the scope of fish farming

3. To facilitate the opportunities for sale employment for members

1.6 RESEARCH METHODOLOGY

Research is a systematic approach to a purposeful investigation. Research Methodology

is a science that helps a researcher to study how the research can do scientifically.
Research methodology provides various steps that can be adopted by the researcher in
studying his research problems. Research methodology has many dimensions. It

2
explains why we are using a method and why not using another so that research result
is capable of being evaluated either by researcher or by others The success of any study
depends upon the research methodology used for the study.

1.6.1 RESEARCH DESIGN

Research Design is the conceptual structure within which research is conducted. It

constitutes the blueprint for collection measurement and Analysis of data was
descriptive research. Descriptive research involves collecting numerical through a
questionnaire. For the present study the research was descriptive and conclusion
oriented.

1.6.2 POPULATION

The total number of items or things in a particular equity is known as a Population.

Here the population is Fish Farmers in Iritty Municipality.

1.6.3 SAMPLING TECHNIQUE

For collecting data for the study, forty-five (45) respondents, those who are Carrying
on Fish Farming. The Convenient sampling technique has been used for collecting the
data.

1.6.4 SAMPLE SIZE

A sample of 45 respondents was selected and Questionnaire was distributed to them.

1.6.5 DATA COLLECTION

Information has been collected from both primary and secondary data.

• Primary Data

Primary data those which are fresh and collected from the first time and thus happened
to be original in character. The primary data was collected through Structured
Questionnaire.

• Secondary Data

Secondary data those which are already been collected by someone else and which
already has been passed through the statistical processes. The secondary data are
collected through websites, books, magazines etc.

3
1.6.6 TOOLS FOR DATA COLLECTION

For the present study questionnaire, face to face interactions, secondary data, articles,
etc. were used for collection of data.

1.6.7 AREA OF STUDY

The area of study is confined to Iritty Municipality in Kannur District.

1.7 PERIOD OF STUDY

The period of study was December 2022 to March 2023

1.8 LIMITATIONS OF THE STUDY

• Collected only from a small representative of Fish Farmers in Iritty

Municipality. The smaller sample size may affect the study
• Time for conduct of study was limited to small period. This may affect the study
• Reluctance from the part of farmers to provide information regarding their
income from fish farms.

4
 CHAPTER 2

THEORETICAL FRAMEWORK

AND

REVIEW OF LITERATURE

5
2.1 THEORETICAL FRAMEWORK

AGRICULTURE AND ALLIED ACTIVITIES

The Word agriculture is derived from the Latin words 'ager' which means "field" and
'cultra' which means "growing". Agriculture is the cultivation and breeding of animals,
plants and fungi for food, fibre, bio-fuel, medicinal plants and other products used to
sustain and enhance life. Agriculture was the key development in the rise of sedentary
human civilization, whereby farming of domesticated species created food surpluses
that nurtured the development of civilization. The major agricultural products can be
broadly grouped into foods, fibres, fuels and raw materials.

Specific foods include cereals (grains), vegetables, fruits, oils, meats, and spices. Fibres
include cotton, wool, hemp, silk, and flax. Over one third of the words workers are
employed in agriculture, second only to the services sector, although the percentage of
agricultural workers in developed countries have decreased significantly over the past
several centuries.

AGRICULTURAL PRODUCTION SYSTEM

(A) CROP CULTIVATION SYSTEMS

Cropping system vary among farms depending on the available resources and
constraints; geography and climate of the farm; government policy: economic social
and political pressures; and the philosophy and culture of the farmer. Shifting
cultivation (or slash and burn) is a system in which forests are burnt, releasing nutrients
to support cultivation of annual and then perennial crops for a period of several years.
Annual cultivation is the next phase of intensity in which there is no fallow period. The
requires even greater nutrient and pest control inputs.

Further industrialisation led to the use of monoculture, when one cultivar is planted on
a large acreage. Because of the low biodiversity, nutrient use is uniform and pests tend
to build up, necessitating the greater use of pesticides and fertilizers. Multiple cropping,
in which several crops are grown sequentially in one year, and intercropping, when
several crops are grown at the same time, are other kinds of annual cropping systems
known as polycultures

6
(B) CROP STATISTICS

Imported categories of crop include cereals and pseudo-cereals, pulses (legumes)

forage, fruits and vegetables. Specific crops are cultivated in distinct growing regions
through the world. The following table shows crop types and their production all over
the world Top agricultural products;

CROP TYPES PRODUCTION(Million Tonnes)

Cereals 2,263

Vegetables and melons 866

Roots and tubers 715

Milk 6119

Fruit 503

Meat 259

Oil crops 133

Fish(2001 estimates) 130

Eggs pulses 63

Vegetable fiber 30

Pulses 60

(Sources: Food and agriculture organization, FAO)

(C) LIVESTOCK PRODUCTION SYSTEM

Livestock production system can be defined based on sources, as grassland based,

mixed, and landless. As of 2010, 30% of Earth's ice and water free area was used for
producing livestock, with the sector employing approximately 1.3 billion people.
Between the 1960 and 2000 three was a significant increase in livestock production,
increases. Global cattle, sheep and goat population are expected to continue to increase
sharply through 2050.

Aquaculture of fish farming, the production of fish for human consumption in confined
operations, is one of the fastest growing sectors of food production, growing at an
average of 9% a year between 1975 and 2007. During the second half of the 20th

7
century, producers using selective breeding focused on creating livestock breeds and
crossbreeds that increased production, while mostly disregarding the need to preserve
genetic diversity. This trend has led to a significant decrease in genetic diversity and
resources among livestock breeds, leading to a corresponding decrease in disease
resistance and local adaptations previously found among traditional breeds.

FISH FARMING AN OVERVIEW

Fish farming or pisciculture involves raising fish commercially in tanks or enclosures

such as fish ponds, usually for food. It is the principal from of aquaculture, while other
method may fall under mariculture. A facility that releases juvenile is generally referred
to as a fish hatchery. Worldwide, the most important fish species produced in fish
farming are crap, tilapia, salmon, and catfish. Demand is increasing for fish and fish
protein, which has resulted in wide spread overfishing in wild fisheries. China provides
62% of the world's farmed fish such as salmon, does not always reduce pressure on
wild forage fish. The 2008 global returns for fish farming recorded by the FAO totalled
33.8 million tonnes worth about $US 60 billion. Aquaculture makes use of local
photosynthetic production (extensive) or fish that are fed with external food supply
(intensive).

FISH FARMING METHODS

Within intensive and extensive aquaculture methods, numerous specific types of fish
farms are used; each has benefits and applications unique to its design.

(A) CAGE SYSTEM

Fish cages are placed in lakes, bayous, ponds, rivers, or oceans to contain and protect
fish until they can be harvested. The method is also called "off-shore cultivation" When
the cages are placed in the sea. They can be constructed of a wide variety of
components. Fish farming with cages are that many types of waters can be constructed
of a wide variety of components. Fish are stocked in cages, artificially fed, and
harvested when they reach market size. A few advantages of fish farming with cages
are many types of waters can be used (rivers, lakes, filled quarries, etc...) Many types
of fish can be raised, and fish farming can co-exist with sport fishing and other water
uses. Cage farming of fishes in open seas is also gaining popularity. Given concerns of

8
disease, poaching, poor water quality, etc... Generally pond systems are considered
more simple to start and easier to manage.

(B) IRRIGATION DITCH OR POND SYSTEM

These fish-farming ponds were created as a co-operative project in a rural village in the
congo. These use irrigation ditches or farm ponds to raise fish. The basic requirement
is to have a ditch or pond that retains water, possibly with an above-ground irrigation
system (many irrigation systems use buried pipes with headers.) Using this method,
water allotments can be stored in ponds or ditches, usually lined with bentonite clay. In
small systems, the fish are often fed commercial fish food, and their waste products can
help fertilize the fields. In larger ponds, the pond grows water plants and algae as fish
food. Some of the most successful ponds grow introduced strains of plants, as well as
introduced strains of fish.

Control of water quality is crucial. Fertilizing, clarifying, and pH control of the water
can increase yields substantially, as long as eutrophication is prevented and oxygen
levels stay high. Yields can be low if the fish grow ill from electrolyte stress.

(C) COMPOSITE FISH CULTURE SYSTEM

The composite fish culture system is a technology development in India by the India
council of agriculture research in the 1970s.In this system, of both local and imported
fish, a combination of five or six fish species is used in a single fish pond. These species
are selected so that they do not compete for food among them by having different types
of food habitats. As result, the food available in all the parts of the pond is used. Fish
used in this system include catla and silver carp which are surface feeders, rohu, a
column feeder, and common crap, which are bottom feeders.

One problem with such composite fish culture is that many of these fish breed only
during monsoon. Even if fish are collected from the wild, they can be mixed with other
species, as well. So, a major problem in fish farming is the lack of availability of good-
quality stock.

(D) INTEGRATED RECYCLING SYSTEMS

Large plastic fish tanks are placed in a greenhouse. A hydroponic bed is placed near,
above or between them. When tilapia is raised in the tanks, they can eat algae, which
naturally grown in the tanks when the tanks are properly fertilized. The tank water is

9
slowly circulated to the hydroponic beds, where the tilapia waste feeds commercial
plant crops. Carefully cultured micro-organisms in the hydroponic bed convert
ammonia to nitrates, and the plants are fertilized by the nitrates and phosphates. Other
wastes are strained out by the hydroponic media, which double as an aerated pebble-
bed filter.

This system, properly tuned, produces more edible per unit area than any at her. A wide
variety of plants can grow well in the hydroponic beds. The main environmental impact
is discharge of water that must be sated to maintain the fishes' electrolyte balance. Some
veterinary authorities speculate that ultraviolet ozone disinfectant systems (widely used
for ornamental fish) may play a prominent part in keeping the tilapia health with re-
circulated water.

FISH FARMING IN INDIA

Fish is the one of the favourite items in the food menu of almost 60% of Indians. So,
market demand is always high for fish items. If we consider the global demand also,
total requirement becomes very high. The main source of fish is from the sea. But the
global fish harvest from the sea decreasing rapidly. The only way we can ensure
availability of fish to meet increasing demand is through fish farms. Inland fresh water
fish farming play’s major role of here. We have many natural ponds here. With a good
business plan and decision, we can convert this opportunity to a successful small-scale
farm.

Fishing in India is a major industry in its coastal states, employing over 14 million
people. In 2014-2015, the country export over 1050000 metric tonnes of fish to 75
countries, warning over $5.51 billion. According to the food and agriculture
Organization (FAO) of the United Nations, fish production has increased more than
tenfold since1947 and doubled between 1990 and 2010.India has 8,129 kilometres (5,
051 mi) of marine coastline, 3827 fishing villages and 1,914 traditional fish landing
centres. India fresh water resources consist of 195,210 kilometres (121, 300) of rivers
and canals, 2.9 million hectares of minor and major reservoirs, 2.4million hectares of
ponds and lakes, and about 0.8million hectares of flood plain wetlands and water
bodies. As of 2010,the marine and fresh water resources offered a combined sustainable
catch fishing potential of over 4 million metric tonnes of fish. In addition, India water
and natural resources offer a tenfold growth potential in aquaculture (farm fishing) from

10
2010 harvest levels of 3.9 million metric tonnes of fish, if India were to adopt fishing
knowledge, regulatory reforms and sustainability policies.

ADVANTAGES OF FISH FARMING IN INDIA

The main advantages of setting up commercial fish growing business in India are listed
below.

1. Fish and products have a huge demand in India

2. Market demand and price is always high for fish and fish related products in
India.
3. Indian climate is very suitable for fish production and fish growing business.
4. Various types of easily found water sources are available.
5. Various types of fast-growing fish species are available.
6. This will provide them both financial freedom and permanent income
opportunities.
7. The main facility of commercial fish farming in India is that you can easily sell
your products in proper price.

ECONOMIC BENEFITS

Fishing India contributed over 1% of Indians annual gross domestic product in

2008.fishing in India employs about 14.5 million people. To harvest the economic
benefits from fishing, India as adopted exclusive economic zone, stretching 200
nautical miles (370km) in to the Indian ocean, encompasses more than 2 million square
kilometres. In addition to this marine zone, India has about 140000 km2 of brackish
water available for aquaculture, about 16000 km2 of fresh water lakes, ponds, and
swaps; and nearly 64000 kilometres of rivers and streams.

Fish production rose from 800000 tons in financial year 1950 to 4.1 million tons in the
early 1990s.from 1990 through 2010, India fish industry accelerated, reaching a total
marine and fresh water fish production to about 8 million metric tons. In 2006, Indian
Central government initiated a dedicated organization focused on fisheries, under its
Ministry of Agriculture. Special efforts have been made to promote extensive and
intensive inland fish farming, modernize coastal fisheries, and encourage deep-sea
fishing through joint ventures. These efforts led to a more than fourfold increase in
coastal fish production from 520000 tons in FY 1950 to 3.35 million tons in FY

11
2013.The increase in inland fish production was even more dramatic, increasing almost
eightfold from 218,000 tons in FY 1950 to 6.10 million tons in FY 2013. The value of
fish and processed fish exports increased from less than 1% of the total value of exports
in FY 1960 to 3.6 percent in FY 1993. Between 1990 and 2007.fish production in India
has grown at a higher rate than food grains, milk, eggs, and other food items. India
inland waters (rivers, reservoirs, wetlands, lakes and ponds) contribute 62-65 % of the
total fisheries production.

AQUACULTURE

CARP farming in the country started between 1970 and 1980 due to the demonstrated
high production levels of 8 to 10 tonnes/hectare/year in a incubation centre. Late
1980saw the dawn of aquaculture in India and transformed fish culture into a more
modern enterprise. With the economic liberalization of the early 1990, India breeding
and culture technologies include primarily different species of crap, including the
important India major carp species (notably, catla, mrigal and rohu). Other species such
as catfish, murrels and parents are recent addition. The culture systems adopted in the
country vary greatly depending on the input available in any region as well as on the
investment capabilities of the farmer. While extensive aquaculture is carried out in
comparatively large water bodies with stocking of the fish seed as the only input beyond
utilising natural productivity, elements of fertilization and feeding have been
introduced in to semi-intensive culture. The different culture systems in India practices
include: with supplementary feeding and aeration (10-15) tonnes/ha/yr.). Com,
composite carp culture (4-6 tonnes/ha/yr./), weed-based carp polyculture (3-4
tonnes/ha/yr.), Integrated fish farming with popular, pigs, ducks, horticulture, etc. (3-5
pen culture (3-5 tonnes/ha/yr.), cage culture (10-15 kg/m2/yr.), Running-water fish
culture (20-50kg/m2/yr.).

(A) FRESH WATER AQUACULTURE

Fresh water aquaculture accounts for nearly 55% of the total fish production in India.
Aquaculture resources in India include 2.36 million hectares of ponds and tanks, 1.07?
Million hectares of beels, jheels and derelict waters plus in addition 0.12 million
kilometres of canals, 3.15 million hectares of reservoirs and 0.72 million hectares of
upland lakes that could be utilized for aquaculture purposes. Ponds and tanks are the
prime resources for fresh water aquaculture in India. However, less than 10% of India’s

12
natural potential is used for aquaculture currently. For bringing more areas under
scientific fisheries and aquaculture, the Indian government and primer fisheries
research Institute are typing hard to sensitize the fish farmers and entrepreneurs
regarding the package of practices and prospects of the highly promising-culture-based
fisheries technology (CBF) is one of the for most strategies for achieving blue
revolution. CBF is generally practiced in inland waters having areas between 100 and
1000 ha (lakes, wetlands, and small reservoirs) and cautiously in 1000-5000 (medium-
sized reservoirs).

(B) BRACKISH WATER AQUACULTURE

Brackish water aquaculture has become an important source seaweed, shellfish, and
fine fish, especially for human food and production, which is likely expand well in the
next century if a sea level rise maintains its present pace. It has both direct and indirect
impacts on biodiversity through the consumption of natural resources and the
production of wastes. Most of the brackish water aquaculture has developed in the
mangrove ecosystem as the water has congenial parameters and tidal actions.

2.2 REVIEW OF LITERATURE

1) Swathi N.A.; Shanmugam T. R.; &Sathiadhas R.-(2011)- Central Marine

Fisheries Research institute – Kochi – India –“Economic viability of mechanized
fishing units and socio economics of fishing ban in Kerala” – The study revealed
that, in open access unregulated marine fisheries, the viability of a fisher’s unit
greatly influences the entry or exit of vessels in the fishing industry. The paper
analyses the friability of various mechanized fishing units in the Kerala state using
different economic and financial Indicators. Socio-economic impact of fishing ban
on fishing labor was also worked out and suggestions were given for improving
the livelihood security of fish Workers.

2) Ga Onkar Rekha R., Rodrigues maria D. CFishery Management A. P. H,

publishing Corporation – 4435-36/7, Ansari Road – Darya Ganj – New Delhi –
110002. – 2008. This book is the outcome of the UGC sponsored major research
project. The book addressed “the main issues confronting the fishery sector”.The
fishing industry has experienced many structural changes due to the introduction
of new technology.

13
3) Venugopal S. (2005) in his book “Aquaculture” claims that information and
consumer education programs can play a vital role in expanding the demand for
aqua cultural products”. He suggests that economists should be innovative in their
research approaches to study consumer demand for fish and sea food and about the
resource allocation and public policy affecting aquaculture.

4) Khader Vijaya; Sathyadhas R. & Mohamad leasim H.–(2004)-“Role of women

in fisheries in coastal Eco-system of Andhra Pradesh, Karnataka, Kerala and Tamil
Nadu 15-12-2004”, States that fish eaters in the study area comprise 47 per cent of
the total Population ranging from 237 per cent in Tamil Nadu to 85 per cent in
Kerala. Though the Position of Tamil Nadu in terms of numbers of coastal districts
and possession of coast Line including the number of landing centers is envious,
the number of fish eaters in the state is minimal. Andhra Pradesh employs 32 per
cent of its fisherwomen in fish caring / Drying / net making and 27 per cent in
processing plant works.

5) Nirmala Vivek H.; Sontakki Bharat S,; Birodar R. S.; Metar Santosh Y. –
(2003)-Central Institute of fisheries education- Mumbai – Assessment of
Indigenous Knowledge of coastal fisher folk of greater Mumbai and Sindhudurg
district of Maharashtra – 10 June 2003- The conclusion of this study is the
indigenous knowledge of coastal fisher folk on various fisheries management
aspects like choice of materials and methods for fishing and fish processing, their
perceptions on the effect of water Color, wind direction, lunar cycles, tidal
fluctuations on fish catch are by and large based On scientific rationality efficacy
and use of local resources as judged by the fisheries experts, hence such indigenous
knowledge can be gainfully blended with the modern Scientific and technical
wisdom to evolve a package of fisheries management that enjoys ready acceptance
by the fishermen and enhances efficacy. Sustainable use of local Resources
without affecting the environment.

6) D’Souza(2002) in his study “Fishing woes to the Fore” asserted that the main
Reason for the malaise in the fishing scenario in Goa is the lackadaisical approach
of the Governmental agencies, both Central and Sate. The Central Government has
still to enact the law to implement a uniform ban period on fishing activities all
over the country. He Stressed that there should not be more than 800 trawlers

14
 operating if there is to be Optimum fishing yield in the state. He found that
pollution by organic released generated From industrial units, urban settlements;
hotels and shrimp farming activities have Adversely affected bio-productivity in
Goa’s coastal waters. His main conclusion is that The quantity and quality of fish
is slowly deteriorating in the state.

7) Barbosa(2002) in his study “Fishing for a High Living” states that the mechanized
Fishing in Goa is done without any proper regulations. There is no license system
for Trawlers in the state. Once a trawler owner registers his trawler, he need not
approach any Government department again. The state of Goa has 1128 registered
trawlers and this is Far above the saturation point. He suggests that there is a need
to regulate the number of Trawlers that go in the sea and their expedition schedule.
The author strongly feels that There is a need to redraft the laws and to control the
mesh size.

8) Vijayakumar K. (2001) in his paper “Social Audit – an ideal method for

Neutralizing conflict situations in aquaculture industry” attempts to identify and
examine the activities of the aquaculture industry having an impact on the
immediate environment and to elaborate haw social audit would help to neutralize
the conflict situation in Aquaculture industry. The author states that once the
factors contributing to the social Costs/benefits are identified, their objectives,
assessment, evaluation, measurement and Presentation will give an idea of the net
cost/benefit of the farm. The study reveals that The understanding of the principles
and adoption of the practices will certainly lead to the Achievement of
sustainability in the long-run.

9) Sathiadas R. and Kumar Narayana R. (2001) in their paper entitles “Export of

Finfish-impact on domestic trade production” assess the trends in production and
export Trade of selected varieties of finfish based on the data collected from the
publication of CMFRI and MPEDA, Cochin. Their study reveals that in spite of
exporting the top Quality selective fishes, the unit value realized by them from
abroad is not appreciable And even less than that of the prevalent domestic prices
for some varieties. Expansion of Export trade of finfish without enhancing the
internal supply of quality fishes will be Detrimental to the interest of domestic
consumers. Aquaculture alone is the viable Alternative for the same. Diversified

15
 fresh and brackish water aquaculture production of Quality fishes and sea farming
should be intensified to bridge the gap between demands and supply in the
domestic market and to maintain the tempo of export trade of fin fishes.

10) Sehara D. B.S. et.al(2000) studied “Economic Evaluation of Different Types of

Fishing Methods along Indian Cost.” They indicated that the studies on the craft
and gear Combination should be conducted on macro level in different maritime
states for effective Future planning in maritime fisheries sector. Non-mechanized
motorized and mechanized sector should be given equal priorities While
undertaking cost and earning studies. There has to be also a stress on employment
Potential, marketing problems, financial needs of various types of units and proper
Management of inputs used for fishing.

16
 CHAPTER III

ANALYSIS AND INTERPRETATION

17
ANALYSIS AND INTERPRETATION

This chapter deals with analysis and interpretation of data collected from Iritty Taluk.
This analysis and interpretation are based on the responds given by the farmers those
who are doing fish farming. The proceeded data is presented on the analysis part with
the help of tables and figures for the easy understanding and interpretation.

The data obtained from the farmers in Iritty Taluk are analyzed and interpret with the
help of various tables and charts.

18
3.1 TYPE OF FISH FARMING

TABLE NO 3.1

TYPE OF FISH FARMING

Type of fish farming No. of respondents percentage

Fresh water fish farming 40 88.89
Salt water fish farming 5 11.11
Brackish water fish 0 0
farming
Marine fish farming 0 0
total 45 100
Source:Primary data

TYPE OF FISH FARMING

0 0

11.11

88.89

fresh water fish farming salt water fish farming

brackish water fish farming marine fish farming

CHART NO 3.1

INTERPRETATION

Table 4.1 shows that about 88.89% of the farmers are doing fresh water fish farming.
Only 11.11% are focused on salt water fish farming. None of the farmers are doing
brackish or marine water fish farming.

19
3.2 TIME SPEND ON FISH FARMING

TABLE NO 3.2

TIME SPEND ON FISH FARMING

Time spend on farming No of respondent’s percentage

Below 1 hour 10 22.22
1-4 hours 35 77.78
7-10 hours 0 0
Above 10 hours 0 0
Total 45 100
Source:Primary data

TIME SPEND ON FISH FARMING

120

100

80
77.78
60

40

20 22.22 35
10
0 0 0
Below 1hour 1-4 hour 7-10 hour above 10 hour

no. of respondents percentage

CHART NO 3.2

INTERPRETATION:

From the table it is clear that 77.78% farmers are spending between 1-4 hours and the
rest 22.22% are spending below 1 hour for fish farming. None of the farmers spend
more than 7 hours.

20
3.3 DURATION OF FISH FARMING

TABLE NO 3.3

DURATION OF FISH FARMING

Duration No. of respondents Percentage

Below 1 year 10 22.22
1-3 years 20 44.45
3-5 years 15 33.33
5-10 years 0 0
Total 45 100
Source:Primary data

DURATION OF FISH FARMING

50
44.45
45
40
35 33.33

30
25 22.22
20
20
15
15
10
10
5
0 0
0
below 1 year 1-3 year 3-5 year 5-10 year

no of respondents percentage

CHART NO 3.3

INTERPRETATION:

In the above chart 4.3, 44.45% are doing fish farming for about 1-3 years and 33.33%
have been doing it for 3-5 years. There is also a percentage of 22.22 % of farmers doing
farming for less than 1year. Also, none of the respondents are doing the fish farming
for more than 5 years.

21
3.4 SCOPE AND ADVANTAGE OF FISH FARMING

TABLE NO 3.4

SCOPE AND ADVANTAGE OF FISH FARMING

Particulars No. of respondents Percentage

Less capital investment 20 44.45
High rate of return 15 33.33
The export possibilities 0 0
Subsidies and other 10 22.22
incentives
Total 45 100
Source:Primary data

SCOPE AND ADVANTAGE OF FISH FARMING

50
44.45
45
40
35
30
25 22.22 22.22
20
15
10
5
0
0
Particulars Quarry Irrigation tank Pond

CHART NO 3.4

INTERPRETATION:

From table no.4.4 about, 44.45% of respondents chose an advantage of fish farming as
less capital investment. High rate of return is opinioned by 33.33%and 22.22% pointed
towards subsidies and other incentives as an important advantage. None of the
respondents chose the export possibility as an advantage.

22
3.5 FACTORS MOTIVATING FISH FARMING

TABLE NO 3.5

FACTORS MOTIVATING FISH FARMING

Particulars No. of respondent Percentage

Self-employment 30 66.67
Less risk 0 0
Self interest 15 33.33
Finance assistance from 0 0
government
total 45 100
Source: Primary data

33.33

66.67

self employment less risk self interest finance assistance from government

CHART 3.5

INTERPRETATION:

In the table no 4.5, about 66.67 % of the respondents have agreed self-employment as
a motivating factor. 33.33 % respondents considered self-interest and none of them
chose less risk and finance assistance from government as a factor motivating fish
farming.

23
3.6 AVERAGE WORKIING CAPITAL

TABLE NO 3.6

AVERAGE WORKIING CAPITAL

Average working capital No. of respondents Percentage

Below 10000 20 44.44
10000-30000 25 55.56
30000-50000 0 0
50000-100000 0 0
Total 45 100
Source: Primary data

AVERAGE WORKING CAPITAL

60 55.56

50
44.44

40

30
25
20
20

10

0 0 0 0
0
below 10000 10000-30000 30000-50000 50000-100000

no. of respondents percentage

CHART NO 3.6

INTERPRETATION:

In the table 4.6, about 55 % of respondents have agreed that their average working
capital was about 10000-30000 and 44.44 % of respondents agreed their average
working capital was only below 10000

24
3.7AVERAGE MONTHLY INCOME

TABLE NO 3.7

AVERAGE MONTHLY INCOME

Average monthly No. of Percentage

income respondents
Below 10000 25 55.56
10000-30000 10 22.22
30000-50000 10 22.22
Above 50000 0 0
Total 45 100
Source: Primary data

AVERAGE WORKING CAPITAL

60 55.56

50

40

30
22.22 22.22
20

10

0
0
below 10000 10000-30000 30000-50000 above 50000

percentage

CHART NO 3.7

INTERPRETATION:

In the table 4.7, about 55.56% of people says that their average monthly income from
fish farming was below 10000 and 22.22% of people says about 10000-30000 and
22.22% of people says that their average monthly income was about 30000-50000.

25
3.8 BASIC REQUIREMENTS

TABLE NO 3.8

BASIC REQUIREMENTS

Particulars No. of respondents Percentage

Land 0 0
Capital 0 0
Water 5 11.11
All of the above 40 88.89
Total 45 100
Source:Primary data

BASIC REQUIREMENTS

0, 0%
5, 11%

land
capital
water
all of the above

40, 89%

CHART NO 3.8

INTERPRETATION:

In the table 4.8 about, 88.89% of respondents have agreed that their basic requirements
of fish farming was all of above which means the land, capital and water. And 11.11%
of respondents agreed that water was the basic requirements of fish farming.

26
3.9 TRADITIONAL WAY

TABLE NO. 3.9

TRADITIONAL WAY

Particulars No .of respondents Percentage

Yes 15 33.33
No 30 66.67
Total 45 100
Source: Primary data

TRADITIONAL WAY
120

100

80

60 66.67

40
33.33
20
30
15
0
yes no

no of respondents percentage Column1

CHART NO 3.9

INTERPRETATION:

In the table 4.9 about 66.67 respondents have agreed that they are executing their fish
farming in traditional way and 33.33% of respondents says that they are not executing
the fish farming in traditional way.

27
3.10 SUBSIDIES

TABLE NO 3.10

SUBSIDIES

Subsidies No. of respondents Percentage

Below 10% 25 55.56
10-30% 20 44.44
30-50% 0 0
Above 50% 0 0
Total 45 100
Source: Primary data

SUBSIDIES

00

44.44

55.56

below 10% 10-30% 30-50% above 50%

CHART NO 3.10

INTERPRETATION:

In the table 4.10 about 56.56% of people have agreed that their percentage of subsidies
they were getting from fish farming was below 10% and 44.44% says that their
subsidies getting from fish farming was about 10 – 30 %.

28
3.11 BENEFITS OF FISH FARMING

TABLE NO 3.11

BENEFITS OF FISH FARMING

Benefits No. of respondents Percentage

Fishing keeps you fit 0 0
Fishing improves self 25 55.56
esteem
Fishing reduce stress 5 11.11
Fishing gives relaxation 15 33.33
Total 45 100
Source: Primary data

BENEFITS OF FISH FARMING

50
44.45
45
40
35
30
25 22.22 22.22
20
15
10
5
0
0
Particulars Quarry Irrigation tank Pond

CHART NO 3.11

INTERPRETATION:

In the table no 4.11 about 55.56% of the respondents’ states that fishing improve self-
esteem and 33.33% of respondent’s states that gives relaxation and remaining states
that fishing reduce stress.

29
3.12 LEVEL OF SATISFACTION

TABLE NO 3.12

LEVEL OF SATISFACTION

Particulars No. of respondents Percentage

Very satisfied 15 33.33
Less satisfied 20 44.45
Neither satisfied or 10 22.22
dissatisfied
dissatisfied 0 0
Total 45 100
Source: Primary data

LEVEL OF SATISFACTION
50
44.45
45
40
35 33.33

30
25 22.22
20
20
15
15
10
10
5
0 0
0
very satisfied less satisfied neither satisfied or dissatisfied
dissatisfied

no. of respondents percentage

CHART NO 3.12

INTERPRETATION:

In the table no 4.12 about 33.33% of respondents are satisfied with fish farming and
44.45% are less satisfied and others remaining are neither satisfied or dissatisfied.

30
3.13 PROFITABILITY

TABLE NO 3.13

PROFITABILITY

Type of fish farming No. of respondents Percentage

Cat fish farming 0 0
Salmon fish farming 0 0
Tilapia fish farming 40 88.89
Common carp fish 5 11.11
farming
Total 45 100
Source: Primary data

PROFITABILITY

11.11

Cat fish farming

Salmon fish farming
Tilapia fish farming
Common carp fish farming

88.89

CHART NO 3.13

INTERPRETATION:

In the table no 4.13 about 88.89% of the respondents says about tilapia fish farming and
remaining 11.11% are in common carp fish farming are most profitable in fish farming.

31
3.14 BEST FISH FRMING FIELD

TABLE NO 3.14

BEST FISH FRMING FIELD

Particulars No. of respondents Percentage

Quarry 10 22.22
Irrigation tank 10 22.22
Pond 20 44.45
Backwaters 5 11.11
Total 45 100
Source: Primary data

BEST FISH FRMING FIELD

50
44.45
45
40
35
30
25 22.22 22.22
20
15 11.11
10
5
0
Quarry Irrigation tank Pond Backwaters

CHART NO 3.14

INTERPRETATION:

In the table 4.14 about 44.45% of respondents says that pond is best for fish farming
and 22.22% of respondents choose quarry and irrigation tank and remaining choose
backwater.

32
3.15BEST SEASON

TABLE NO 3.15

BEST SEASON

Particulars No. of respondents Percentage

Summer 15 33.33
Rainy 30 66.67
Winter 0 0
Spring 0 0
Total 45 100
Source: Primary data

BEST SEASON
80

70 66.67

60

50

40 33.33
30

20

10

0 0 0
Summer Rainy Winter Spring
percentage 33.33 66.67 0 0

percentage

CHART NO 3.15

INTERPRETATION:

In the table no 4.15 about 66.67% of respondents says that rainy season is the best for
fish farming and remaining 33.33% choose summer season.

33
3.16 BEST FEED

TABLE NO 3.16

BEST FEED

Particulars No of respondents Percentage

Fish stick 0 0
Domestic food 5 11.11
Natural food 20 44.44
Fish flakes 20 44.45
Total 45 100
Source: Primary data

BEST FEED

11.11

44.45
Fish stick
Domestic food
44.44 Natural food
Fish flakes

CHART NO 3.16

INTERPRETATION:

In the table no 4.16 about 44.45% of respondents says fish flakes is the best feed.
44.44% says natural food and 11.11 % of the respondents says fish stick is best.

34
3.17 PROBLEMS IN FISH FARMING

TABLE NO 3.17

PROBLEMS IN FISH FARMING

Major problems No. of respondents Percentage

Lack of hatchery 15 33.34
Stress 10 22.22
High speed cost 10 22.22
Lack of proper knowledge 10 22.22
Total 45 100
Source: Primary data

PROBLEMS IN FISH FARMING

40

35 33.34

30

25 22.22 22.22 22.22

20

15

10

0
Lack of hatchery Stress High speed cost Lack of proper
knowledge

CHART NO 3.17

INTERPRETATION:

In the table no 4.16 about 33.34% of respondents face lack of hatchery as major problem
and 22.22% of the other respondents are included in facing stress, high speed cost and
lack of proper knowledge.

35
3.18 CHALLENGES IN FISH FARMING

TABLE NO 3.18

CHALLENGES IN FISH FARMING

Particulars No. of respondents Percentage

Climatic change 20 44.45
Lack of raw materials 0 0
Lack of fund 10 22.22
Others 15 33.33
Total 45 100
Source: Primary data

CHALLENGES IN FISH FARMING

50
44.45
45
40
35 33.33

30
25 22.22
20
15
10
5
0
0
Climatic change Lack of raw materials Lack of fund Others

percentage

CHART NO 3.18

INTERPRETATION:

In the table no 4.17 about 44.45% of respondents face climate change of fish farming
and 22.22% faces the lack of fund problem and 33.33% of respondents included in the
other category.

36
3.19 DIFFICULTIES IN FISH FARMING

TABLE NO 3.19

DIFFICULTIES IN FISH FARMING

Particulars No. of respondents Percentage

Yes 25 55.56
No 20 44.44
Total 45 100
Source: Primary data

DIFFICULTIES IN FISH FARMING

No, 44.44
Yes, 55.56

Yes No

CHART NO 3.19

INTERPRETATION:

In the table no 4.18 about 55.56 % of respondents face difficulty in fish farming and
44.44% of respondents says that fish farming is not difficult.

37
3.20 TRAINING PROGRAM

TABLE NO 3.20

TRAINING PROGRAM

Particulars No of respondents Percentage

Yes 10 22.22
No 35 77.78
Total 45 100
Source: Primary data

TRAINING PROGRAM
90
77.78
80

70

60

50

40

30
22.22
20

10

0
yes no
percentage 22.22 77.78

percentage

CHART NO 3.20

INTERPRETATION:

In the table no 4.19 about 77.78% are not interested in the training program of fish
farming and 22.22% of them are included in fish training programs.

38
 CHAPTER IV

FINDINGS, SUGGESTIONS AND CONCLUSION

39
4.1 FINDINGS

• It was found that majority of respondents says rainy season is best for fish
farming.
• Through the findings we can say that the average monthly income of fish farming
is below 10000.
• The study reveals 90% respondents are engaged in Tilapia fish farming and 12%
are in common crap fish farming.
• It was observed that 35% of respondents are quite satisfied with fish farming and
50% of respondents are less satisfied.
• It was identified that most profitable fish farming is common crap fish farming.
• Among the respondents, most of the states that fishing improves self esteem.
• The majority of respondents face climate change and lack of fund problem.
• It reveals that 70% of respondents have agreed that they are executing their fish
farming in traditional way.
• It was observed that while comparing with other type of fish farmers, fresh water
fish farming is best for farmers.
• The study points out that, self-employment as the motivating factor.
• It is observed that subsidies and incentives are major scope of fish farming.

40
4.2 SUGGESTIONS

• The fish farmers should considered geographical advantages or location

advantages while choosing a place for the farm in order to reduce challenges
regarding Climate changes scarcity of water etc.
• The fish farmers should utilize the stable demand of fish and other marine
products and its export possibilities.
• The unemployment youth can enter into fish farming; as they get subsidies and
other benefits so as to earn profit.
• 70% Fish farmers are not attended any kind of fishing training programs, for
more improvement in this field govt should provide trading programmers to the
farmers.
• After Covid pandemic many new Fish farmers has comes to this field, but they
have only limited resources and capital .At this point govt need to provide more
incentives and subsidies for them .
• It is advisable to spend more times on the time period immediately after the
commencement of the farm.
• Domestic and natural food is more cost effective and safe than other
manufactured foods.
• Fish farmers is required to be engaged in farming for more than 4 hours .

41
4.3 CONCLUSION

In conclusion, it is hoped that the information presented in this Atlas will promote the
greater and more effective use of locally available raw materials for feeds and
fertilizers, and at the same time reduce dependence on imported feedstuffs. It is also
hoped that the discussions will help provide insights to farmers in their adoption of
technologies for increasing productivity and profitability. Freshwater aquaculture is of
major importance to these countries. It contributes to higher fish production, increasing
supplies of animal protein and generation of employment, and is also a means of
improving farming .Policies should be implemented regarding the use of natural
resources, research, inputs and outputs and pricing, and they should also be able to
address the problems in marketing, credit, trade, investment and exchange rates.

42
 REFERENCE
BOOKS

1. N Arumugan,Aquaculture,Sara publications

JOURNALS

1. Swathi N.A.; Shanmugam T. R.; &SathiadhasR “Economic viability of

mechanized fishing units and socio economics of fishing ban in Kerala” 2011
2. Ga Onkar Rekha R., Rodrigues maria D. C“The main issues confronting
the fishery sector” 2008
3. Venugopal S.“Aquaculture” 2005
4. Khader Vijaya; Sathyadhas R. & Mohamad leasim H. “Role of women in
fisheries in coastal Eco-system of Andhra Pradesh, Karnataka, Kerala and
Tamil Nadu 15-12-2004”,
5. Nirmala Vivek H.; Sontakki Bharat S,;Birodar R. S.; Metar Santosh Y
“Assessment of Indigenous Knowledge of coastal fisher folk of greater
Mumbai and Sindhudurg district of Maharashtra – 10 June 2003”
6. D’Souza“Fishing woes to the Fore”2002
7. Barbosa“Fishing for a High Living” 2002
8. Vijayakumar K.“Social Audit – an ideal method for Neutralizing conflict
situations in aquaculture industry” 2001
9. Sathiadas R. and Kumar Narayana R.“Export of Finfish-impact on
domestic trade production”2001
10. Sehara D. B.S. et.al“Economic Evaluation of Different Types of Fishing
Methods along Indian Cost.” 2000

WEBSITES
1. https://www.fao.org/3/Y2876E/y2876e0a.htm
2. https://www.manage.gov.in/stry&fcac/content/17.%20Project%20Report%20o
f%20Fishery%20farming%20%20(Inland).pdf
3. https://awionline.org/content/fish-farming
4. http://shodh.inflibnet.ac.on:8080/jspui/bitstream/123456789/3786/3/03_revie
w%20of%20literature.pdf

43
ANNEXURE

44
 QUESTIONNAIRE

Name:

Age:

Gender: Male Female

Occupation:

1. What type of Fish Farming are you doing?

Fresh water fish farming

Salt water fish farming

Brackish water fish farming

Marine fish farming

2. How many hours are spent on fish farming in a day?

Below 1 hour

1-4 hours

7-10 hours

Above 10 hours

3. How long you have been engaged in fish farming?

Below 1 years

1-3 years

3-5 years

5-10 years

4. What are the scope and advantages of fish farming?

Less capital investment

Higher rate of return

The export possibilities

Subsidies and other incentives

45
5. Factors motivating fish farming?

Self-employment

Less risk

Self-interest

Finance assistance from government

6. What is the average working capital of fish farming?

Below 10000

10000-30000

30000-50000

50000-100000

7. What is the average monthly income from fish farming?

Below 10000

10000-30000

30000 -50000

Above 50000

8. What are the basic requirements of fish farming?

Land

Capital

Water

All of the above

9. Are you executing the fish farming in a traditional way?

Yes No

10. What percentage of subsidies you are getting from fish farming?

Below 10%
10-30%
30-50%
Above 70%

46
11. What are the benefits from fisheries activities?

Fishing keeps you fit

Fishing improves self-esteem

Fishing reduces stress

Fishing gives relaxation

12. Are you satisfied with Fish farming?

Very satisfied

Less satisfied

Neither satisfied or dissatisfied

Dissatisfied

13. Which type of fish farming is most profitable?

Cat fish farming

Salmon fish farming

Tilapia fish farming

Common carp fish farming

14. Which land is best for fish farming?

Quarry
Irrigation Tank
Pond
Backwaters
15. Which season is best for Fishing?
Summer

Rainy

Winter

Spring

47
16. Which is the best feed for fish?

Fish sticks

Domestic food

Natural food

Fish flakes

17. What are the major problems in fish farming?

Lack of hatchery

Stress

High speed cost

Lack of proper knowledge

18. What are Challenges you face in fish farming?

Climate changes

Lack of raw materials

Lack of fund

Others

19. Are you facing any difficulty in fish farming?

Yes No

20. Have you participated in any training program related to aquaculture?

Yes No

48
STUDY ON EMPLOYABILITY AFTER GRADUATION IN
IRITTY AREA
A PROJECT REPORT

Submitted by

ANJANA C K DB20BR0006

ABHISHEK C K DB20BR0001

ASHIN MANOJ DB20BR0023

S SUJISHA DB20BR0040

Under the supervision of

Ms.SHILPA VICHITHRAN

In partial fulfilment for the award of bachelor degree in

COMMERCE

DON BOSCO ARTS AND SCIENCE COLLEGE

OF KANNUR UNIVERSIY

MARCH 2023
1
 KANNUR UNIVERSITY

BONAFIDE CERTIFICATE

Certified that this project report “STUDY ON EMPLOYABILITY

AFTER GRADUATION IN IRITTY AREA” is the bonafide work of
ABHISHEK C K, ANJANA C K, ASHIN MANOJ and S.SUJISHA
who carried out the project work under my supervision.

SIGNATURE SIGNATURE
Mrs..DEEPTHY JOSEPH Ms.SHILPA VICHITHRAN
HEAD OF DEPARTMENT SUPERVISOR

DEPT. OF COMMERCE,
DON BOSCO ARTS & SCIENCE COLLEGE
ANGADIKADAVU, KANNUR.
2
 DECLARATION

I, ABHISHEK C K, ANJANA C K, ASHIN MANOJ and S.SUJISHA hereby

declare that the Project Work entitled “STUDY ON EMPLOYABILITY AFTER
GRADUATION IN IRITTY AREA” has been prepared by me and submitted to
Kannur university in partial fulfillment of requirements for the award of Bachelor of
Commerce, is a record of original work done by me under the supervision of
Ms.SHILPA VICHITHRAN, Assistant Professor, Department Of Commerce, Don
Bosco Arts &Science College, Angadikadavu.

I also declare that this Project Work has not been submitted by me fully or partly for
the award of any Degree, Diploma, Title or Recognition before.

Place: Angadikadavu Signature of the Student

Date : DB20BR0001
DB20BR0006
DB20BR0023
DB20BR0040

3
 ACKNOWLEDGEMENT

I sincerely express my deep sense of gratitude to the persons who have been of great
help to me during the course of my project.

First and foremost, I thank God Almighty for his blessing and protection during the
period of my work.

I express my thanks to Fr. Dr Francis Karackat SDB, Principal, for his timely help
and support in the completion of this project.

We also extend our sincere thanks to Mrs. DEEPTHY JOSEPH, Head of the
Department of Commerce and all other staff members of the Department of Commerce,
Don Bosco Arts and Science College, Angadikadavu for making available to us their
valuable advice and sincere co-operation of study during the academic period.

We also wish to express my thanks to guide Ms. SHILPA VICHITHRAN, Assistant

Professor, Department of Commerce for her valuable advice and timely assistance
during the period of study.

I am grateful to my classmates, friends, my father and all the faculty members of the
department for my studies. I would like to express my thanks to my seniors for their
support which kept me safe through the difficulties of the project. I also thank all those
who helped me directly and indirectly in the successful completion of this project.

ABHISHEK C K

ANJANA C K

ASHIN MANOJ

S.SUJISHA

4
 CONTENTS

SL.NO TITLE PAGE NO

List of tables

List of charts

CHAPTER 1 Introduction 1-4

CHAPTER 2 Theoretical Profile 5-22

CHAPTER 3 Data analysis and interpretation 23-40

CHAPTER 4 Findings, Suggestions and Conclusion 41-43

References

Appendix

5
 LIST OF TABLE

Table No. Title Page No.

3.1 Gender of the respondents 23

3.2 Age of the respondents 24

3.3 Location of the respondents 25

3.4 Qualification while getting the job 26

3.5 Current salary package 27

3.6 Satisfied with your current job 28

3.7 Registration in employment exchange 29

3.8 Base for job 30

3.9 Important criteria for job 31

3.10 Employability chance is high in modern world 32

3.11 Graduation is the base for job 33

3.12 Criteria for getting a job after graduation 34

3.13 Satisfaction about semester system for graduation 35

3.14 Graduation holder has an ability to overcome an 36

Interview and other type of competitive

examination

3.15 Consciousness about job interview 37

3.16 Distant education system is useful to graduates 38

Salary expectation of graduates

3.17 Getting sufficient salary as a graduate 39

6
 LIST OF FIGURES

Figure No. Title Page No.

3.1 Gender of the respondents 23

3.2 Age of the respondents 24

3.3 Location of the respondents 25

3.4 Qualification while getting the job 26

3.5 Current salary package 27

3.6 Satisfied with your current job 28

3.7 Registration in employment exchange 29

3.8 Base for job 30

3.9 Important criteria for job 31

3.10 Employability chance is high in modern world 32

3.11 Graduation is the base for job 33

3.12 Criteria for getting a job after graduation 34

3.13 Satisfaction about semester system for graduation 35

3.14 Graduation holder has an ability to overcome an 36

Interview and other type of competitive

examination

3.15 Consciousness about job interview 37

3.16 Distant education system is useful to graduates 38

Salary expectation of graduates

3.17 Getting sufficient salary as a graduate 39

7
 CHAPTER I

INTRODUCTION

8
1.1 INTRODUCTION

Employability means creating work getting paid for it and learning at the same time
enhancing the ability to get work in the future. Employees Universities and professional
bodies agree that the modern world need to develop professionals who are highly
skilled and ready to face the challenges of increased competition .More than ever need
the professionals who are responsive to economic, social cultural technical and
environmental change and can work flexibly and intelligently across business contexts.

The number of degree student finish higher education has been gradually increasing. In
2010 these were 15707, international degree students including7815 in universities
and7892 in universities of applied sciences. When considering these figures, the goal
of the strategy for the internationalization of higher education institutions in 2009-2015
increase the number have expressed a growing concern as to what happens to these
students after they graduate. International students to 20000 by 2015 look feasible.
However various stakeholders Employability are central to the strategic direction of the
Department for Education and Employability.

Government policy to enhance the employability of graduate is part of a wider strategy

to extent the skills base in the This UK. This employability is associated with human
capital theories of innovation and economic performance. Growth in the stock of
human capital is essential for economic growth, and hence the government‟s agenda is
driven by the desire to stem the productivity shortfall. The higher education system is
therefore being steered to place greater emphasis on the employability of graduates.
Morley (2001) suggest that higher education institutions are mediate and manage
government policy, and that the boundaries between the academy, government and
business have loosened and been reformed.

1.2 STATEMENT OF THE PROBLEM

Employability a set of achievements- skills understandings and personal attributes- that

make graduates more likely to gain employment and be successful in their chosen
occupations, which benefits themselves, the workforce, the community and the
economy.

The study is an attempt to analyze the relevance of employability aftergraduation

and also to find out the employability skills of graduates.

1
1.3 SIGNIFICANCE OF THE STUDY

Unemployability is the main problem of the society. So its study is most important.
This project studies on employability after graduation in Irrity area. The number of
graduate holders increased .So this project is an attempt to studying the effect of
employability after graduation

1.4 SCOPE OF THE STUDY

Various surveys and research prove that the graduate employability have a great role in
the society. The present study attempt to make an analysis of graduates what do after
their graduation. Even through many studies have been conducted on this topic
generally, no study has been done on this particular “employability after graduation”.
So I am sure that my project will be helpful one regarding this topic.

1.5 OBJECTIVE OF THE STUDY

 To understand the scope of employability after completing graduation.

 To analyze employability skill of graduates

 To find out the reasons for unemployment even after completing graduation

 To make feasible suggestions to improve the employability of graduates.

1.6 RESEARCH METHODDOLOGY

The study is based on a single unit and hence survey method is accepted as a general
methodology. Some statistical tools such as percentage method used for analysis of
data.

1.6.1 RESEARCH DESIGN

Research design is the frame work r blueprint for conducting the research. It specifies
the details of the procedures necessary for obtaining the information need and for solve
research problem.

1.6.2 AREA OF STUDY

Graduate holders in Iritty area is purposefully selected for this study

1.6.3 POPULATION

The total number of items or things in a particular equity is known as population. In

2
this project study was conducted through various graduate holders of different colleges
in Iritty area.

1.6. 4 SAMPLE SIZE

Sample size taken in this project is 45 graduate holders of different colleges in Iritty
area.

1.6. 5 SAMPLE TECNNIQUE

Sampling technique is the technique used to select the sampling size. This study is used
convenient sampling on the convenience of the researcher.

1.6.6 SOURCE OF DATA

Both primary sources and secondary sources are used for the smooth conduct of study.

A. Primary Data: These are data those collected by the investigator for the first
time for a specific purpose and thus they are original in character. These are collected
on the basis of questionnaires.

B. Secondary Data: These are the data already collected by someone else for his
purpose, is utilized by the investigator for his purpose. Bank annual reports, journals,
websites, and books.

1.7 TOOL FOR ANALYSIS OF DATA

Percentage method

The present study is used percentage analysis method. Percentage analysis is the
method to present raw stream of data as a percentage for better understanding. Simple
percentage method has been used for analysis of primary data collected.

Percentage of respondent=Number of respondents/Total number of respondents*100

1.8 PERIOD OF STUDY

Period of study is from December 2022 to February 2023

1.9 LIMITATION OF THE STUDY

 The area of study was very wide hence it was able to collect only small
sample.

 Only limited number of respondent could be included in the study.

3
  The respondent was not interested to fill the questionnaire and they were very
eager to finish the questionnaire.

1.10 OVERVIEW OF REPORT

Present study consist of four chapters

 Chapter 1 consists of introduction

The chapter deals with introduction, significance of the study, statements of the
problem, objectives, research methodology and period of the study and limitations of
the study.

 Chapter 2 consists of theoretical profile.

Following the introductory chapter , the second chapter deals with theoretical profile
and review of literature on this area and other relevant to study.

 Chapter 3 consists of data analysis and interpretation.

In connection of the objectives the presentation of data for analysis and

interpretation were done in a systematic manner with necessary tables.

 Chapter 4 consist of findings, conclusion and suggestions.

This chapter provides a brief summary of findings, suggestions which drawn on

the basis of result of the study and conclusion.

4
 CHAPTER II

THEORETICAL BACKGROUND AND

LITERATURE REVIEW

5
THEORETICAL PROFILE
OVERVIEW OF EMPLOYABILITY
Employability is a management philosophy, developed by late professor Sumantra
Ghoshal and others, which recognizes that employment and market performance stem
from the initiative, creativity and competencies of all employees, and just from the
wisdom of senior management. For employers, it involves creating a working
environment that can provide opportunities for personal and professional growth, within
a management environment where it is understood that talented, growing organizations.
For many employees, the new contract would involve movement towards a greater
commitment to continuous learning and development, and towards an acceptance that,
in a climate of constant change and uncertainty, the will to develop is the only hedge
against a changing job market.

EMPLOYABILITY RELATIONSHIP

There are several options for and many aspects of employability

Traditional Employment without Employability

Traditional employment does not include employability.

Employability is related to work and the ability to be employed, such as:

 The ability to gain initial employment; hence the interest in ensuring that „key
competencies‟, careers advise and an understanding about the world of work are
embedded in the education system.

 The ability to maintain employment and make transitions between jobs and
roles within the same organization to meet new job requirements, and

 The ability to obtain new employment if required, i.e. to be independent in the

labour market by being willing and able to manage their own employment
transitions between and within organizations.

Including Employability Contract

Lee Harvey defines employability as the ability of a graduate to getting satisfying job,
stating that job acquisition should not be prioritized over preparedness for employment
to avoid pseudo measure of individual employability. Lee argues that employability is
not a setoff skills but arrange of experiences and attributes developed through higher

6
level learning, thus employability is not a product but a process of learning.

Several employability definitions have been developed based on, or including input
from business and industry. In the United States, an Employability skill framework was
developed through a collaboration of employers, educators, human resources
associations, and labor market associations. This framework states, “employability skill
are general skill that are necessary for success in the labor market at all employment
levels and in all sectors “.After conducting research with employers across Canada, the
Conference board Canada released employability skill 2000+, which defines
employability as “the skill you need to enter, stay in, and progress in the world of
work”. Saunders & Zuzel (2010) found that employers valued personal qualities such as
dependability and enthusiasm over subject knowledge and ability to negotiate.

Employability Skills

Coopers and Lybrand define employability skills „in terms of four key
areas:1)traditional intellectual skills –e.g. Critical evaluation ,logical argument;2).key
sills – communication IT etc 3)personal attributes –motivation ,self reliance and
4)knowledge of organizations and how they work. There are several synonyms-core,
key, generic, personal transferable skills, common, work or employment related skills-
this is another of the reason why it is difficult to conceptualize what is meant by
employability skill. Add to that ,‟skills‟ are often referred to as capabilities
,competencies or attributes, level or learning outcomes, thus compounding the sense of
confusion. This means that students can be aware of any gaps in their own personal
development well of advance of getting to the stage of applying for jobs sets out a list
of skills which knight and Yorke (2001) and Bennett et al. (1999) also consider to be
important.

It is possible that employer‟s criticisms of the shortcomings recruits are not so much the
result of failure in the HE curriculum, rather of failure in the transfer process .Atkins
(1994) questions how transferable key skills are into employment contexts. Eraut
(1994) sees transfer as a learning process in its own right, although this may be easier
for skills in relation to objects such as using particular computer package rather than the
softer skills of interacting with and managing people effectively. Brown believes that
learning, and the transfer of that learning is most likely to be effective if the learning
situation closely resembles the work place. Knight and Yorke believe that if there is

7
any hope of transferring the learning from one context to another, the learner needs to
use that learning in a variety of different situations. From this comments, it would seem
that practice in a number of contexts is fundamental for the development of
employability skills and attributes.

Academic Perspective

Academics will need to be convinced that an institutions insistence on their

incorporating employability skills into their teaching is not an attack on academic
freedom in terms of content, but a request that academics consider how they teach their
subjects. In relation to the debate concerning core and generic skill provision, Bennett et
al. comment that there was little impact because of tutor skepticism of the message, the
messenger and its vocabulary. The same is probably true for the employability debate.
Harvey advocates the view that the primary role of higher education is to train
students by enhancing their knowledge, skills attitudes and abilities and to empower
them as lifelong critical and reflective learners. This is similar to the perspective of the
skills plus project that see concern for employability is supportive of good learning
rather than the opposition to it. Empowering leaner‟s is about giving students control
over the educational process and their post educational lives , and Harvey suggest that it
is debatable how serious academia is in achieving these ends. It is essential that any
changes to the curriculum are owned by the staff delivering the modules, if they are to
be successfully implemented. Atley and Harriis comment that is important to work with
the culture and values of the institution and higher education itself. A culture that
strives to improve the learning environment for the benefit of the student‟s staff is
essential for the successful implementation of change. However, Deia Harpe Et Al
conclude that in the anarchy of individualism that is academia , the responses of staff
varies unpredictably little can be achieved without staff commitment accompanied by
an agreed change process .

Traditional academic systems at universities may operate against good teaching and
teaching innovation since the emphasize for promotion is on research output and
quality rather than improvements to curriculam. De la Harpe et al have found this to the
case in Australia. However, public acknowledgement of good teaching is beginning to
occur in some universities.

8
Assessment and Employability

Assessment affects how students study, encouraging them to take a „deep‟ approach to
a task rather than a „surface‟ approach (Entwhistle, 1996). Assessment criteria also
inform students of what they need to improve upon to succeed, and identify what their
tutors perceive to be important and what is not. Formative assessment is important so
that students can learn from prior work and from taking risky challenges rather than
opting for the „safer‟ pieces of work that are less of a challenge (Yorke 2001).
Considerate feedback can be emotionally important, particularly when it builds learner
confidence and sense of achievement. That is not to say that feedback should not be
critical, but it should also offer suggestions of how improvements could be made
next time (Knight, 2001). Biggs and Moore (1993) encourage self-assessment of
formative work and skills development. This encourages students to become
autonomous learners and learn from their own mistakes: if they can see how they could
improve a piece of work they are more likely to implement change with the next
assignment. Peer assessment is also important, as students will learn from each other.
Peer and self- assessment may need guidance sheets for students to work to, and work
may need to be moderated by tutors so that a common standard is maintained, highly
critical comments can be moderated and gaps in assessment filled.

Implications for Postgraduates -

Postgraduates are rarely mentioned in the literature concerning the development of

employability skills and attributes. They seem to be a forgotten group who are not
explicitly encouraged to think about either their skill or career development. This is
beginning to change. Orchard et al. (2000) in a report for the DfEE note a number of
inhibiting factors in the training of research students for employability, these include:

1. A lack of time, with priority given to research progress rather than personal
development

2. A lack of interest from supervisors

3. Negative experiences of previous profiling systems.

4. A lack of relevance of documentation to specific research topics.

They recommend personal profiles for research students that can be used for;
monitoring and appraising skills development and competence; regular recording of

9
information; facilitating the description, analysis, reflection upon and evaluation of
experiences. Skills workshops are also recommended to develop team working skills,
enable postgraduates to gain a better understanding of their own personal working style,
address the challenges posed by the changing nature of work and enhance career
management skills, e.g. CV writing, job-searching and interview skills.

Personal development Planning

A significant outcome of the Dearing Report (1997) was Recommendation 20, that:
„institutions of higher education, over the medium term, develop aProgress File. The
file should consist of two elements;

1. A transcript recording student achievement which should follow a common

format devised by institutions collectively through their representative bodies.

2. A means by which students can monitor, build and reflect upon their personal

development.‟ The QAA expects students graduating in 2005/06 to have progress files
or Personal Development Plans (PDP), documenting their achievements. The primary
objective of PDP is to improve the capacity of individuals to understand what and how
they are learning, and to review, plan and take responsibility for their own learning.
Students need to be able to reflect on their achievements and present evidence for them
and to be aware of how their own employability is being developed both through the
curriculum and extra-curricula activities. If a student is unaware that she possesses
certain qualities, s/he is unlikely to apply them (Yorke, 2001). Activities, are linked to
the learning outcomes of programmes of study and are supported and endorsed by
academic staff (LTSN Guide for busy academics no.1). Some students have given this
idea a lukewarm reception and staff claim that they have more important things to do
than wade through complex documentation (Wright & Knight, 2000). But, PDPs are
important for the development of an individual‟s employability. Employers are
primarily interested in the process of PDP rather than the outcomes. At recruitment
stage, the value of PDP is in helping applicants to explain and demonstrate what they
know, what they can do and what they have done (LTSN guide for Busy Academics
No. 3). Application forms are not focused on academic subjects that have been studied,
but instead require reflection and description of both academic and non-academic
activities. PDP can be useful in this context as it encourages students to recognise their
learning in ways that employers are interested in. PDP can also help to prepare students

10
for Assessment Centres by increasing their understanding of how their competencies
are transferable between situations. Students may also be more prepared for the type of
competency frameworks they may encounter within organisations by being more self-
aware and reflective. PDP is useful for career management and lifelong employability,
as increasingly, individuals are being given responsibility for their own CPD early in
their careers (guide for Busy Academics No. 3). Getting students into the habit of
reflecting upon their activities and achievements and planning the action that they need
to take to move on will have long term positive benefits for most graduates.

Lifelong Learning

Educational policy in Britain is currently putting great emphasis on lifelong learning.

This is in response to the recognition that the typical patterns of everyday working life
are changing, which makes more varied demands on an individual‟s skills (Harvey,
1997). Harvey (2000a) regards employability to be a subset of and fundamentally
contingent on transformative lifelong learning. Atkins (1999) suggests that Dearing
(1997) sees the undergraduate experience as a one-stop shop for the development of
employability skills, terminating in graduation. Yet in the role of HE, improving the
performance of employees, the concept of lifelong learning offers more scope, by
enabling students to develop skills which will give them a foundation and basis for
future learning and development. The recent approach to lifelong learning is more than
a second- chance at education – it sees a well educated and trained population as
essential for future economic prosperity, innovation, social and political cohesion
(Harvey, 2000a). The view of education as preparatory is being challenged by the
concept of lifelong learning, which sees education as an activity each individual
engages with throughout life and under conditions which favour motivation and success
(Skilbeck & Connell, 1996). However, there is still ambiguity about what lifelong
learning means for HE in practice, so that lifelong learning tends to be associated with
the employability agenda. The wider democratic agenda does not appear to be at the
forefront of development (Harvey, 2000a), and also it is not philosophically integrated
into the mainstream concept of HE. Coffield (1997) suggests that Government plans to
create a new culture of lifelong learning without developing a theory of learning, or
even recognising that one is required.

Dunne et al. (2000) concur, suggesting that without a theoretical understanding of how

11
students and graduate employees learn, of how the setting or context mediates what
and how they learn, or of institutional and organisational change, the Dearing
prescriptions for the role of HE in economic development and in lifelong learning will
not be realised. According to Skilbeck and Connell (1996), a vital determinant as to
whether or not graduates choose to become lifelong learners is the climate of
intellectual inquiry in their institution. Lifelong learning perspectives are leading to a
view of the first cycle of education as an enabling device for future learning – with an
emphasis on generic achievements – rather than a vocational passport. Individual, self-
directed learning is an important element of this agenda – and relates to PDP

Reflection

Reflective thinking refers to the capacity to develop critical consideration of one‟s own
world-view and the relationship to the world view of others. It is the ability to transcend
preconceptions, prejudices and frames of reference and it underlies the capacity to learn
from others and from experience (Warn & Tranter, 2001). The learning cycle based on
Kolb (1984) is often used as the basis for explaining experiential learning to students.
However, Kolb overlooks the social, historical and cultural aspects of self, thinking and
action (Davies, 2000). Memory is also omitted from the learning cycle. The Kolb
learning cycle is however, a helpful analytical tool for an individual to use as a basis for
analysing their experiences. Moon (1999) states that reflection lies some where around
the notion of learning and thinking. We reflect in order to learn, or learn as a result of
reflecting. Reflective writing is central to many employability initiatives, for example
PDP representation of the process of thinking reflectively (Moon, 1999). It will often
involve a student (for example) describing an experience and evaluating and analysing
their feelings and experiences. It may also involve the student thinking about how they
would tackle a similar situation in the light of these experiences and analyses.

Warn and Tranter (2001) suggest that one of the implications of their study conducted
in Australia is that universities should make more explicit the importance of reflective
thinking in terms of its potential importance in the workplace, rather than simply its
more esoteric value within a degree. However, a Pilot Study carried out at Leeds
Metropolitan University came across potential barriers due to student perceptions that
reflection is a „girly thing‟ (Davies, 2000). This can only be overcome by making
reflective learning something that is central to curricula and introduced at an early stage

12
of the degree programme so that it is an activity that is seen as „normal‟.

Work Experience

Dearing (1997) and the TEC National Council (Times Higher, 1997) strongly suggested
that work experience should be made available to a greater number of students. Work
experience could mean: structured summer placements – tasters or a year out; summer
internships; short term project placements; casual work – temping, bar work etc.; work
shadowing or voluntary work. DfES (2002) suggest that students of all ages can learn
from their experiences in the world of work to develop their key competencies and
skills and enhance their employability. Employers value people who have undertaken
work experience and reflected on it and can articulate and apply what they have learnt
(Knight & Yorke, 2002a). Partnerships between HEIs and employers are valuable in
promoting work-related learning and improving the quantity and quality of those
experiences. Tables 1b&c show that employers also value graduates who have an
awareness of how businesses work and this can be gained through work experience.
There has not to date been a study of the impact of the option of work experience
modules on the recruitment of student numbers. However, since parents are
increasingly concerned with the employability of their children when they graduate,
especially in the light of incurring large debts while studying, it would seem that
graduate employability will increasingly become a consideration. Work experience
opportunities need to be well managed to be educationally valuable, but good work
experience can enhance learning and employability (Knight & Yorke, 2000). Work-
based learning requires the learner to manage their own learning, create learning
opportunities to enable outcomes to be achieved and provide satisfactory evidence
(Jackson, 1999). Davies (2000) noted that from his experience and from talking to
academics in his institution, accreditation was felt to be the most likely way of
persuading students to undertake work experience modules. However, some students
entering HE at 18 or 19 years of age may not be mature enough to reflect effectively on
work experience and employability skills, although in general, Bibby found that
students understand the relationship between work experience, reflection and skills
development. Holmes (2001) suggested that if work experience is not a formal part of
the degree programme, tasks should be set that explicitly and intentionally relate to the
work place. For example, students may be asked to write a report from the stance of an
employee of a particular position within a particular organisation. This will enable

13
students to focus upon practices relevant to the occupations that are typically entered
into. This enables students to develop more than just „skills‟but can be viewed as a
rehearsal for „the real thing‟. Increasingly, students are working more than the 15 hours
maximum recommended to support themselves whilst they are studying at university
(Bibby et al., 2000). There needs to be a progress of employment as students go
through their degree programme, as they increasingly need to minimise hours of work
and at the same time increase their income (Bibby, et al., 2000). A large percentage of
students are having to work in order to support themselves whilst they are studying at
university, because of tuition fees, the lack of grants and an increase in the expectations
of the standard of living that students have (Shabi, 2002). Academia has to accept that
most students will be spending some time each week working to earn money rather
than studying. These experiences LTSN Generic Centre 10 October 2002 are therefore
best utilised to increase students‟ understanding of both themselves and the workplace.

Teamwork

The need for graduates prepared for employment and skilled in teamwork has been
advocated over the last decade internationally (Dunne & Rawlins, 2000). With
increasing numbers of students entering HE and reductions in staff contact time, the
ability of students to work together efficiently is likely to become increasingly
important (Dunne & Rawlins, 2000). Groups of students often work together during
the course of their degree studies, for example seminar groups in Law, groups on
Geography, Biology or Archaeology field classes, or in laboratory classes. Teamwork is
used for enhancing the learning process, and enhancing the learning knowledge, not
just skills development (Nichol, 1997). It is not often however, that students are trained
explicitly to understand the processes, roles, tensions and means of resolving them that
stem from team work (Dunne & Rawlins, 2000).

Performance indicators – measuring employability

University performance is already measured against research and teaching quality and
Smith predicted that it would also include employment of graduates, since this was
highlighted by the Chancellor of the Exchequer in his 1999 pre-budget report. HEFCE
(2001) measures employability in terms of graduates getting jobs, any jobs. AGCAS
now defines a graduate job as any job that a graduate does – this reflects the diversity of
graduate employment and also raises the question as to whether all graduates are

14
employed in suitably demanding jobs, or whether a percentage of them are
underemployed. Little (2001) suggests that one of the measures of „output‟ from HE is
the quality of graduates, and from this has come the notion of graduate employability.
If getting „any job‟ is used as a measure of success, it calls into question the notion of
„quality‟. Little (2001) questions whether graduate employability figures are
trustworthy indicators of the quality ofhigher education. An Employability Performance
Indicator (EPI) is thought by many to be too crude and that it could be used
inappropriately (Harvey, 2000b). An EPI will probably be used as a management tool
for the allocation of funding against performance criteria and also to produce
information to inform students about potential career routes that might follow a
particular university course (Smith et al., 2000). Concern has also been expressed that
an EPI backed by the Treasury would be primarily economically-driven, rather than
related to the education mission of HEIs and the broader purposes of HE. There are two
main purposes of EPI; 1) accountability and improvement, accountability through
benchmarking and league tables, accompanying press coverage and through additional
student numbers, and 2) improvement through internal institutional development and
continuous quality improvement. Harvey (2000b) states that an EPI must have greater
emphasis on improvement than on accountability, but that any EPI must be seen as part
of the development of the learning process, not detached from it. Harvey (2001)
concludes that any evaluation of employability needs to clearly indicate areas for
internal improvement, rather than simply ranking institutions. There is a danger that
institutions will focus too much on their place in the league tables as they seek to
improve their scores. This may be at the expense of fulfilling the educational aims that
students should leave with a rich variety of employment orientated skills,
understandings and attributes (Knight & Yorke, 2001).An EPI based upon the First
Destinations Returns survey (FDR) can result in employability being construed as an
institutional achievement, rather than the ability of individual students to gain
employment (Harvey, 2001), and as such is a pseudo-measure of success. FDR is
logged 6 months after graduation, and this is probably an unrealistic timeframe on
which to base a survey of graduate employability. Many students will be travelling,
undertaking further study, or still looking for work, or may be underemployed
temporarily until a more appropriate and fulfilling job opportunity arises. It may be the
case that graduates will take any job so that they can to pay off debts (Mason, 1995).
However, there is considerable pressure from the government and funding agencies to

15
„keep employability simple‟, so employability is being de facto equated to the gaining
and retaining of fulfilling work (Hillage and Pollard, 1998). First Destinations Returns
Survey (FDR) is divided into four categories:

1. Entering employment (E)

2. Proceeding to further education or training (FS)

3. Unemployed or seeking work or further study (U)

4. Inactive – unavailable for work or further study (OLF)

Further information is gathered on graduates in employment. Harvey expressed concern

about the accuracy, categories and breakdown of FDRs. For example, HESA makes no
distinction in statistics between those who are unemployed and seeking work and those
who are unemployed and not seeking work. Smith proposed a method for the
construction of a set of employment-related university performance measures. They
distinguish between the positive outcomes and the negative outcomes on the basis that
some return is expected of students given the investments made in their education.
They rank universities on the criterion of the probability of graduates being U or OLF.
They also distinguish between E and FS and construct a performance measure for each
category. They have also constructed a performance measure on the basis of the quality
of the employment to account for those that may be under-employed. Labour market
patterns, economic cycles on hiring patterns and regional variations also need to be
taken into account when measuring employability as a PI. Harvey (2000b) took the
view that salary should not be included as an indicator of a „graduate‟ job, given that
many graduates do not begin their working life in graduate jobs, six months after
graduation when the FDR is conducted. However, as the Dearing Report (1997) stated,
graduates should be able to earn a premium over non-graduates, and so salary should
not be ignored altogether. Harvey (2000b) and Smith (2000) propose the construction
of university performance measures based on individual- level data – from FDR survey
data matched to administrative data on individual student records, e.g. subject of study,
gender, age, ethnicity, occupation of parents, entry qualification. This is because the
class of the degree obtained, degree subject studies, prior qualifications and social class
background strongly affect the likelihood of U or OLF. It is naïve to assume that the
employability of an individual necessarily correlates with them obtaining a graduate
job, especially in the first six months after graduation (Knight & Yorke, 2002a). Harvey

16
(2000b) also suggests that the FDR data be collected at least one year after graduation
rather than the current six months, or as time series data for each cohort. One problem
with this is the movement of graduates for taking up work, the diminishing probability
that graduates would keep their alumni office informed of all relocations and the
probability that after the first survey, the rate of returns would drop off sharply.
Prospective students are advised by Smith et al. (2000) not to follow the performance
rankings of an institution slavishly, since rankings based on one years‟ data may be
misleading. Relevant characteristics of the institution‟s intake need to be taken into
account and any performance measure can only be regarded as being indicative of
outcomes for the average student. Their results also suggest that students from poorer
backgrounds have a lower probability of being employed in graduate occupations
after graduation. Careers Advice is important to help students to find suitable
employment after graduation. This is especially important since FDR is the measure of
employability used. The main problem is that CAS usually do not have input into
programme design and may find themselves advising students who cannot make strong
claims to employability (Knight & Yorke, 2002a). All modules need to be accredited
with personal and key skill components & also requirements.

Quality

Quality in HE is a complex concept that has eluded clear definition. If „Quality‟ is

deemed to mean „fit for purpose‟, then de la Harpe (2000) suggest that the first thing
required is that universities are able to determine what society expects from its
graduates. Warn and Tranter (2001) suggest that HE adds value by the development of
generic competencies which prepare students for the workplace. They also suggest that
HE is a transformative experience, and that by developing these generic competencies
students become adaptive and adaptable

THE TOP TEN GRADUATE RECRUITERS WANT

1. Commercial awareness (or business acumen): This is about knowing how a

business or industry works and what makes a company tick. Showing that you
have an understanding of what the organisation wants to achieve through its
products and services, and how it competes in its marketplace.

2. Communication: This covers verbal and written communication, and listening.

It‟s about being clear, concise and focused; being able to tailor your message for

17
 the audience and listening to the views of others.

3. Teamwork: you‟ll need to prove that you‟re a team player but also have the
ability to manage and delegate to others and take on responsibility. It‟s about
building positive working relationship that helps everyone to achieve goals and
business objective.

4.Negotiation and persuasion: this is about being able to put forward your way
but also being able to understand where the other person is coming from so
thatyou can both get what you want or need and feel positive about it.

5. Problem solving: You need to display an ability to take a logical and analytical
approach to solving problems and resolving issues. It‟s also good to show that you
can approach problems from different angles.

6. Leadership: You may not be a manager straight away, but graduates need to
show potential to motivate teams and other colleagues that may work for them.
It‟s about assigning and delegating tasks well, setting deadlines and leading by
good example.

7. Organization: This is about showing that you can prioritise, work efficiently
and productively, and manage your time well. It‟s also good to be able to show
employers how you decide what is important to focus on and get done, and how
you go about meeting deadlines.

8. Preservation and motivation: Employers want people to have a bit of get –

up-and-go .Working life presents many challenges and you need to show
employers that you‟re the kind of person who will find a way through, even when
the going gets tough …and stay cheerful-ish.

9. Ability to work under pressure: This is about keeping calm in a crisis and not
becoming too overwhelmed or stressed.

10. Confidence: In the workplace you need to strike the balance of being
confident in yourself but not arrogant, but also have confidence in your colleagues
and the company you work for a company.

Gaining these skills and attributes

 Have a can-do attitude- be proactive and identify and make advantage of

18
 opportunities for self-development. It is never too early or too late to start.

 Research the career areas your interested in to find the skills and qualities need
for that career.

 Find relevant work experience or volunteering to build these skills and attributes
and to test your idea s.

 Make most of your networks, your family, friends and tutors, people at your
part time jobs or use social networking sites such LinkedIn or Twitter to find the
evidence you have for this.

 Analyze and reflect on what you are doing. What skills are you building? What
evidence have you got for this? What other skills might you need to build? How
are you going to do this?

 Market your skills effectively through applications, CVs and the interview
process opportunities Make a and experience note of the skills you are building
and the interview process

FOUR TIPS TO IMPROVE EMPLOYABILITY WHILE STILL IN SCHOOL

The job market continuous to be challenging for new graduates. Employers are wary of
hiring candidates with little experience and can still have a recession mindset. The good
news is there are steps you can take before you graduate to improve your employability.
Below are a few ideas to try while you are pursuing an online degree.

Speaking with subject matter experts-Understanding the trends within your chosen
career field is a big part of positioning yourself to get hired. Reading articles from
thought leaders in the space or setting up informational interviews before you need a
job can be a great step forward to understanding what future employers are looking for
in new hires. Luckily for Bryant & Stratton College Online students, our instructors are
subject matter experts in their fields. If you‟re enrolled in an online degree program
here, get to know your instructors and consider them a primary resource as you set your
career goals.Focus on soft skills –You‟ll learn the foundations of an industry in your
online classes and having this knowledge is important. But, don‟t forget about soft
skills. Developing the ability to think critically, creatively solve problems synthesize

19
information and provide excellent customer service is just as impotent. The soft skills
are rising to the top of the list of qualities employers are looking for in new hires.

Make Achievement-Based Resume-roles and responsibilities only go so far to describe

why you will be an asset to employers. To effectively highlight your employability (aka
what makes you stand out over other applicants), make sure your resume includes
specific achievements you have made in industry –related classes and past jobs. It may
take a little more effort to think about keys „wins‟ you‟ve had but it will help your
resume filter to the top of the hiring manager‟s stack.

Create a Career-Ready portfolio-After reading the above tip, you may be wondering
what to do if you don‟t have any professional experience to highlight. While you are
still earning your online degree you can start collecting assignments and projects that
will showcase your employable skills. Additionally as you work through your online
degree program, keep in mind what you‟ve learned from industry experts (like your
instructors about what employers want and find projects that will highlight those skills,
that way when you‟re ready to apply for job you‟ll already be the kind of employee
your dream company wants to hire.

20
LITERATURE REVIEW

Review of literature focuses on the earlier studies on employability following are the
various studies on the employability after graduation

Employability is a difficult concept to define succinctly and comprehensively. As

1
Hillage and Pollard state, it is a term used in a variety of context with range of
meanings and a lack clarity and precision as an operational concept. This is rapidly
growing area for publication and this literature review cannot hope to comprehensively
cover all publications, it aims to put the main issues into context.

The notion of the employability challenges traditional concepts of higher education

and raises the question of what the point of higher education is subject knowledge and
understanding or learning how to l. Some academic feel that this agenda is too driven
by government policy and employers rather than the academy, and this can lead
to unrest amongst academics that are expected to teach employability skills and
attributes in the classroom.
2
Whilst Dearing (1997) explicitly refined from producing a list of skills, because of
the nature of the individual programmes of study and their learning objectives, it is
probably useful for students to see the sort of the skill that a programmers is aiming to
develop so they are more aware of their own personal development. It is also useful
for students to see the type of skill which employers are typically seeking for graduate
3
De La Harpe Et Al suggest that there is concern worldwide that existing
undergraduates programs are not producing graduates with the kind f lifelong learning
skills and professional skills which they need in order to be successful in their careers.
4
Coyer (1997) stated that very few PhD students do themselves justice in the job
market, often underselling themself to prospective employers because they fail to
appreciate the value of the skills they have developed during their research. Students
who are aware of the additional skills that they have attained during the course of their
research should have the competitive edge in the job market.

1. Hillage and Pollard

2. Whilst Dearing
3. De La Harpe Et Al
4. Coyer

21
5
Cryer (19 97) believes that these initiatives should be mainstream rather than
peripheral or else they will become sidelined to the perhaps more pressing re search
commitments. By raising a research student‟s awareness of their own employability it
should help to increase their self-esteem and enable them to fulfil their potential.
6
Mutc h (1998) suggests that the „softer skills‟ of negotiation and compromise can be
honed from working in teams where the primary aim is knowledge based and these are
important attributes in the workplace. Training students in team work skills would seem
to have a broader impact than just enabling them to work in teams more effectively,
although obviously this is a primary objective.
7
Berntson (2008)argues that employability refers to an individual‟s perception of his
possibilities of getting new , equal, or better employment. Berntson‟s study
differentiates employability into two main categories-actual employability (objective
employability) and perceived employability (subjective employability).

The employability debate is not new one for higher education .The Robins report
highlighted the objectives of providing instruction in skills suitable to play a part in the
general division of labour .More recently the Dearing report into higher education
emphasized the importance of education for employability-focusing on the
development of key skills and impotence of work experience.

5. Cryer

6. Mutch
7. Berntson

22
 CHAPTER III

DATA ANALYSIS AND INTERPRTATION

23
 Table No.3.1
GENDER OF THE RESPONDENTS
Particulars No. of Respondent Percentage
Male 12 27
Female 33 73
Total 45 100
Source :primary source

GENDER

27%
Male
Female
73%

Figure 3.1
INTERPRETATION

The above table 3.1 revels that 27 percentage of the respondents are male and 73
percentage of the respondents are female.

24
 Table No.3.2

AGE OF THE RESPONDENTS

Particulars No. of respondents Percentage

18-25 15 33
25-30 17 38
Above 30 13 29
Total 45 100
Source: primary data

Respondent
0

29%
33%

38%
18-25 25-30 above 30

Figure 3.2

Interpretation
The above table 3.2 depicts that 38%of the respondents are falling under 25-
30age caterogy,33%of the respondents are falling under the category of 18-
25years,29% of the respondents are falling under above 30 age group.

25
 Table no.3.3

LOCATION OF THE RESPONDENTS

Particulars No. of respondents Percentage
Village 20 44
Town 25 56
Total 45 100
Source: primary data

Respondents

44%

56%

village town

Figure 3.3

Interpretation

The above table 3.3 show that 56 percentage of the respondents are falling under
town area and 44 percentage of the respondents are falling under the category of
village area.

26
 Table 3.4
QUALIFICATION WHILE GETTING THE JOB

Response Number of Response Percentage

After 10th 8 18
After 12th 18 40
After graduation 19 42
Total 45 100
Source: primary data

Qualification
18%

42%

40%

10th 12th graduation

Figure 3.4
Interpretation

The study shows that 42 percentages of person gets job after graduation, 40
percent of person gets job after 12th and only 18 percent of the person gets job
after 10th.

27
 Table 3.5
CURRENT SALARY PACKAGE

Response Number of Response Percentage

Below 10000 12 27

10000-25000 19 43

25000-50000 9 20

Above 50000 5 10

Total 45 100
Source : Primary data
Figure 3.5

CURRENT SALARY PACKAGE

20
18
16
14
12
10
8
6
4
2
0
Below 10000 10000-25000 25000-50000 Above 50000

Figure 3.
Interpretation
The table show that 27 percentage graduates current salary package is below 10000,
43 percentage graduates have upto 10000-25000 salary and 20 percentage graduate
have 25000-50000 salary and only 10 percentage graduate have above 50000 salary .

28
 Table 3.6
SATISFIED IN YOUR CURRENT JOB

Response Number of Response Percentage

Yes 11 24
No 34 76
Total 45 100
Source: primary data

SATISFACTION OF CURRENT JOB

yes no

24%

76%

Figure 3.6
Interpretation

The table shows that 76 percent of graduates are not satisfied in their current job
.Only 24 percent said yes , they are satisfied with their job.

29
 Table 3.7

HAVE YOU REGISTERED IN EMPLOYMENT EXCHANGE

Response Number of Response Percentage

Yes 33 73

No 12 27

Total 45 100

Source: primary data

Figure 3.7
Interpretation
The study reveals that 73 percentage graduates said that they registered in employment
exchange. Only 27 percentage graduates said that they have not registered in
employment exchange.

30
 TABLE 3.8

BASE FOR JOB BUSINESS

Response Number of Response Percentage

Education 3 7
Experience 12 27

Courage 10 23
Money 20 43

Total 45 100
Source: primary data

BASE FOR JOB BUSINESS

25

43%
20

15
27%
23%
10

5
7%

0
Education Experience Courage Money

Figure 3.8

Interpretation

The study shows that 43 percent of graduates said that money is the base for doing
business. 27 percentage graduates said that experience is the base for doing business.
23 percentage said that courage and only 7 percentage said that education is the base
for doing business. We can understand that money is the base for doing business.

31
 TABLE 3.9

MOST IMPORTANT CRITERIA FOR JOB

Response Number Of Response Percentage

Communication skill 10 33
Subject knowledge 8 17

Practical knowledge 12 27
Graduation 10 23
Total 45 100
Source: Primary data

Figure 3.9
Interpretation

The table shows that 33 percent graduates are strongly agree that communication
ability is most important for job 27 percent graduates agree that practical
knowledge is important and only 23 percent graduates agree graduation is
important for a job.

32
 Table 3.10

EMPLOYABILITY CHANCE IS HIGH IN THE MODERN WORLD

Response Number of Response Percentage

Strongly agree 8 17
Agree 17 37
Disagree 6 13
Neutral 10 23
Strongly disagree 4 10
Total 45 100
Source: primary data

Figure 3.10
Interpretation
Table shows that 37 percentage are agree that the employability chance is high in the
modern world. 23 percentage are neutral and 17 percentage are strongly agree only 10
percentage are strongly disagree that employability chance is high in the modern world.
Since a large number of graduates agree, employability chance is high in the modern
world.

33
 TABLE 3.11
GRADUATION IS THE BASE FOR THE JOB
Response Number of Response Percentage
Yes 21 47
No 24 53

Total 45 100
Source: primary data

Figure 3.11
Interpretation
The table shows that 53 percent of graduates are said that graduation is not base for the
business.
Only 47 percent said yes we can understand that graduation is not base for business.

34
 TABLE 3.12
CRITERIA FOR GETTING A JOB AFTER GRADUATION

Response Number of Response Percentage

PSC 18 40
Interview 15 33

Placement 4 10
Others 8 17

Total 45 100
Source: primary data

Figure 3.12
Interpretation

The study shows that 40 percentages of graduates say that they get a job on PSC. 33
percentage of graduates said that they get a job on interview 17 percentage graduate
said that they get a job other way only 10 percentage said that placement.

35
 TABLE 3.13

SATISFACTION ABOUT SEMESTER SYSTEM FOR

GRADUATION

Response Number of Response Percentage

Yes 32 73
No 13 27

Total 45 100

Figure 3.13
Interpretation
From the table it is clear that 73 percent of graduates are agreeing semester system can
develop student‟s knowledge. Only 27 percent are not agreeing. Since 73 percent
satisfied with semester system can develop student‟s knowledge.

36
 TABLE 3.14

GRADUATE HOLDER HAS AN ABILITY TO OVERCOME AN

INTERVIEW AND OTHER TYPE OF COMPETITIVE EXAMINATIONS

Response Number of Response Percentage

Strongly agree 4 7
Agree 19 43
Neutral 12 27
Disagree 6 13
Strongly disagree 4 10

Total 45 100
Source: primary data

Figure 3.14
Interpretation
The table shows that 43percent of graduates agreeing that graduate holder has an
ability to overcome an interview and other type competitive examinations.27percent are
neutral 13 percent are disagree and only 10percent are strongly disagree. We can
understand that 43 percent of graduates agreeing that graduate holder has an ability to
overcome an interview and other type competitive examinations.

37
 TABLE 3.15
ARE YOU CONSCIOUS ABOUT JOB INTERVIEW

Response Number of Response Percentage

YES 30 67
NO 15 33
TOTAL 45 100
Source: primary data

CONSCIOUS ABOUT JOB INTERVIEW

YES NO

33%

67%

Figure 3.15
Interpretation
Table shows that 67 percentage of the graduates are conscious about job interviews
and only 33 percentage of the graduates are not conscious about job interview.

38
 Table 3.16

DISTANT EDUCATION SYSTEM IS USEFUL TO

GRADUATES

Response Number of Response Percentage

Yes 30 67

No 15 33

Total 45 100

Source: primary data

Figure 3.16
Interpretation
From the table, it is clear that 67 percent of graduates are agreeing distant education
system is useful for graduates. Only 33 percent are not agreeing. Since 67 percent are
agree.

39
 Table 3.17
SALARY EXPECTATION FROM GRADUATION

Response Number of Response Percentage

Above 100000 9 20

50000-100000 12 27

20000-50000 19 43

Below 20000 5 10

Total 45 100
Source: primary data
Figure 3.17

Interpretation

The table show that 43 percentage graduates 20000-50000 salary expect from
graduation. 27 percentage graduates 50000-100000 salary expect and 20percentge
100000 salary expect and only 10 percentage graduates expect below 20000.

40
 TABLE 3.18

ARE YOU GETTING SUFFICIENT SALARY AS A GRADUATE

Response Number of Response Percentage

YES 11 24

NO 34 76

TOTAL 45 100
Source: primary data

SUFFICIENT SALARY AS GRADUATES

24%

76%

YES NO

Figure 3.18

Interpretation

The table shows that 76 percentage of the graduates are not getting expected salary and
only 24 percentage of the graduates are getting expected salary.

41
 CHAPTER IV
FINDINGS, SUGGESTION AND CONCLUSION

42
4.1 FINDINGS
 The study reveals that communication skill is most important for a job.

 67% of the respondents agreed distant education system is useful for graduate.
 It was observed that most of the respondents are agreed the semester system can
develop student‟s knowledge.
 It was found that most of the respondents are comfortable with the semester system
for graduation.

 67% of the respondents agrees that they are conscious about their job interview.
 Study revealed that most of the respondents are not considering graduation as a
base for the business.
 According to the opinion of 43% of the respondents‟ money is the base for doing
business.
 Study revealed that a graduate holder has the ability to perform in an interview
and other type of competitive examinations.
 Most of the respondents agree employability chance is high in the modern world.

 43% of the respondents expect 25000 from their job after graduation.

 18% of the respondents expect job after their graduation through PSC.
 Most of the respondents opined is a competitive world and as a graduate holder
they will surely get a job.

43
 4.2 SUGGESTIONS

1. Establish employability strategy by developing a clear framework for students

to understand and reflect on their employability and future opportunities.

2. Improve the knowledge and understanding of subjects that has been chosen to
study through practical oriented learning mechanism.

3. Developing skills both subjects specific and generic skills by aligning the
educational offerings with in demanded skills.

4. Universities and colleges should try to develop graduate employability skills.

5. Provide more practical knowledge through providing practical information

accessible to international students.

6. Develop student knowledge about their work by providing training and

orientation programme.

7. Provide more employment opportunities through placements and internship.

8. Improve soft skills in the time of graduation by focusing on future

opportunities by providing academic advisors and employability staff.

9. Provide training facilities including e-learning, learning manuals and different

aids.

4.3 CONCLUSION
Employability is most important in our society. This study reveals that employability
chance is high in the modern world. But graduates have less employability knowledge.
Employees Universities and professional bodies agree that the modern world need to
develop professionals who are highly skilled and ready to face the challenges of
increased competition. So universities and colleges should develop employability skill
at the time of graduation. That will increase employability chance. This study on
employability after graduation helps to know the problems of graduate in the time of
job selection and find out the suggestions.

44
REFERENCE

45
BOOKS:

1.Michael Tomlinson and Leonard Holmes,”Graduate employability in contex”t 2016

2.Mercy V Chaita, ”Developing graduate employability skill

3.Ruth Bridgestock,Neil Tippet, “Higher education and the future of graduate

employability

4.Paul Hager,Susan Holland, “Graduate attributes ,learning and employability.

WEBSITE:

1. https://www.researchgate.net/publication/332937809_Graduate_employability

2. https://graduateemployability.com

46
APPENDIX

47
 QUESTIONNAIRE

1. Name
2. Gender
Male

Female

Other

3. Age

18-25

25-30

Above 30

4. Location
village

town

5. What is your Current job ?

6. Qualification while getting the job.

After 10th

After 12th

Graduation

48
7. What is your current salary package?

Below 10000

10000-25000

25000-50000

Above 50000

8. Are you satisfied with your current job?

Yes No

9. Have you registered in employment exchange?

Yes No

10. What is the base for job?

Education

Courage

Money

Expenses

11. What is the most important criteria for job?

Communication skill

Subject knowledge

Practical knowledge

Graduation

49
12. Do you think employability chance is high in the modern world .

Yes No

13. Do you agree that graduation is the base for a job.

Strongly agree

Agree

Disagree

strongly disagree

14. In your perspective, what do you think the most important criteria for getting a job after
graduation?

PSC

Interview

Placement

Other
15. Are you satisfied with the semester system for graduation.

Yes No

16. Do you agree with the opinion that a graduate holder has an ability to overcome an
interview and other type of competitive examinations?

Strongly agree

Agree

Disagree

strongly disagree

50
17. Are you conscious about job interview .

Yes No

18. Do you agree that distant education system is useful for graduates.

Strongly agree

Agree

Disagree

strongly disagree
19. What salary do you expect from graduation ?

Above 100000

50000-100000

20000-20000

Below 20000
20. Are you getting sufficient salary as a graduate?

Yes No

51
 ‘A STUDY ON CONSUMER PERCEPTION ON HERBALIFE

NUTRITION PRODUCTS’

A PROJECT REPORT

Submitted by

ASHIN JOHNY DB20BR0036

JILNA MOL JOSEPH DB20BR0009

FATHIMATHUL SAJILA DB20BR0038

JUDE SAJI DB20BR0025

Under the supervision of

SIMMY P.V

In partial fulfillment for the award of Bachelor degree in

COMMERCE

DON BOSCO ARTS AND SCIENCE COLLEGE OF KANNUR UNIVERSITY MARCH

2023

1
 KANNUR UNIVERSITY

BONAFIDE CERTIFICATE

Certified that this project report “A STUDY ON CONSUMER PERCEPTION ON HERBALIFE

NUTRITION PRODUCTS ” is a bonafide work of “ASHIN JOHNY, JILNA MOL JOSEPH,

FATHIMATHUL SAJILA, JUDE SAJI” who carried out the project work under my supervision.

SIGNATURE SIGNATURE

Mrs. DEEPTHI JOSEPH Mrs. SIMMY P.V

HEAD OF THE DEPARTMENT SUPERVISOR

DEPARTMENT OF COMMERCE

DON BOSCO ARTS & SCIENCE COLLEGE

ANGADIKADAVU

2
 DECLARATION

We, ASHIN JOHNY, JILNA MOL JOSEPH, FATHIMATHUL SAJILA, JUDE SAJI, hereby
declare that the project work entitled “A STUDY ON CONSUMER PERCEPTION ON

HERBALIFE NUTRITION PRODUCTS ”has been prepared by us and submitted to Kannur

University in partial fulfilment of requirements for the award of Bachelor of Commerce, is a record of
original work done by us under the supervision of Asst. Prof. Mrs. SIMMY P.V of Department of
Commerce, Don Bosco Arts and Science College Angadikadavu.

We also declare that this project work has not been submitted by us fully or partly for the award of any
Degree, Diploma, Title or Recognition before.

Place: Angadikadavu Signature of the student

Date: DB20BR0036

DB20BR0009

DB20BR0038

DB20BR0025

3
 ACKNOWLEDGEMENTS

We sincerely wish to express our deep sense of gratitude to all who helped us to complete project work.
First and Foremost we thank the God Almighty, for his blessings and grace for the successful
completion of the project work.

We acknowledge our gratitude to the Principal, Rev.Fr.Dr. Francis Karackat SDB, Don Bosco Arts
and Science College, Angadikadavu for giving us an opportunity to undertake this venture.

We also extend our sincere thanks to Mrs. DEEPTHI JOSEPH, Head of the Department and all other
staff members of the Department of Commerce, Don Bosco arts and Science College, Angadikadavu
for making available to us their valuable advice and sincere co-operation for the completion of study
during the academic period.

We also wish to express our thanks to our guide Mrs. SIMMY P.V, Asst. Professor, Department of
Commerce for her valuable advice and timely assistance during the period of study.

We express our gratitude to all staff members of department of commerce and all our friends for their
encouragement and co-operation.

We are indebted to our beloved parents and other family members for their great support and care.

ASHIN JOHNY

JILNA MOL JOSEPH

FATHIMATHUL SAJILA

JUDE SAJI

4
 CONTENTS

CHAPTER NO. TITLE PAGE NO.

List of tables

List of figures

Chapter I Introduction

Chapter II Theoretical framework

Chapter III Data analysis and Interpretation

Chapter IV Findings, suggestions and

conclusions

Reference

Appendix

5
 LIST OF TABLES

TABLE TITLE PAGE

NO. NO.

3.1 Knowledge about the product

3.2 Reason for usage

3.3 First product used

3.4 Expiry time of product

3.5 Diet timetables

3.6 Product experience

3.7 Usage by different age groups

3.8 Product safety

3.9 Product side effects

3.10 Experience after taking the product

3.11 Satisfaction of the product

3.12 Price of the product

3.13 Effectiveness of the product

3.14 Recommend to someone

6
 LIST OF FIGURES

FIGURE TITLE PAGE

NO. NO.

3.1 Knowledge about the product

3.2 Reason for usage

3.3 First product used

3.4 Expiry time of product

3.5 Diet timetable

3.6 Product experience

3.7 Usage by different age groups

3.8 Product safety

3.9 Product side effect

3.10 Experience after taking the product

3.11 Satisfaction of the product

3.12 Price of the product

3.13 Effectiveness of the product

3.14 Recommend to someone

7
 CHAPTER I

INTRODUCTION

‘A STUDY ON CONSUMER PERCEPTION ON HERBALIFE

NUTRITION PRODUCTS’

8
1.1 INTRODUCTION
Herbalife Nutrition Ltd is also called Herbalife International or simply Herbalife
is a global multi-level marketing corporation that develops and sells dietary
supplements. The company was founded by Mark R Hughes in 1980 and it
employs an estimated 9900 people worldwide. The business is incorporated in
Cayman Islands, with its corporate headquarters located in Los Angeles,
California. The company operates in 95 countries through a network of
approximately 4.5 million independent distributors and members. In October
2022, previous CEO Michael O Johnson was appointed as Chairman and interim
Chief Executive Officer following the departure of John Agwunobi. Its operating
income is US$640.6 million (2020). It has a revenue of US$5.54 billion (2020).
Everything they do is about greatness and it starts with great products, and all
their products starts with proven science. Herbalife Nutrition is dedicated to
developing innovative, effective products that comply with high quality research,
development and manufacturing standards in the industry.
Herbalife Nutrition is a global company that has been changing people’s lives
with great nutrition products and a proven business opportunity for its
independent distributors since 1980. The company offers high-quality, science-
backed products, sold in over 90 countries by entrepreneurial distributors who
provide one-on-one coaching and supportive community that inspires their
customers to embrace a healthier, more active lifestyle. Through the Company’s
global campaign to eradicate hunger, Herbalife Nutrition is also committed to
bringing nutrition and education to communities around the world.

1.2 STATEMENT OF PROBLEM

In this research it is found that awareness about the nutritional products will lead
to the high level of customer satisfactions. It also reveals that price is not an
important factor towards the customer satisfaction. General attitude concerning
nutritional supplements influence the level of satisfaction of the consumers
Importance of nutritional supplements should be communicated properly to the
consumers so that they can feel more benefits of using these products. In terms of
marketing strategies, nutritional supplements need to be promoted with the aim
of making them much more visible and recognizable to final consumers in order
to avoid confusion with other generic health foods. The study focused on how
advertising influences consumer buying behavior and preference for health
products promoted by Herbalife Products. It aims to explore factors affecting the
customers satisfaction towards Herbalife Products nutritional products as well as

9
other dietary supplement products. The findings were analyzed using simple
percentage analysis.

1.3 OBJECTIVES OF THE STUDY

• To study the general awareness of the consumer towards Herbalife
Nutritional Products.
• To study the effect of consumer attitudes towards Herbalife Nutritional
Products.
• To analyze the factor influencing the consumer in selecting the Products.
• To find out the problem faced by the consumer on using the Herbalife
Nutritional Products.

1.4 NEED OF THE STUDY

The need of the study is to know the awareness level and perception about the
products.

1.5 RESEARCH METHODOLOGY

Research Methodology a way to systematically solving how the research is a
science of studying problems. It is the science of studying how the studying how
the research is done. Research has explained the methods and steps adopted for
achieving the purpose of study and be alive at a meaningful conclusion.
Convenience samples are drawn for the problem of project datas we collected
using Structured questions.

1.5.1 RESEARCH DESIGN

Research Design is the conceptual structure within which the research is
conducted. It constitutes the blueprint for collection, measurement and analysis
if data was descriptive research. Descriptive research involves collecting
numerical through a questionnaire. For the present study the research was
descriptive and conclusion method.

10
1.5.2 AREA OF THE STUDY
The scope of the study was limited to the Taliparamb Taluk in Kerala.

1.5.3 SAMPLING UNIT

The target people must be defined that have to be sampled. The sampling unit of
research included that awareness and perception towards the Herbalife
Nutritional Products in Taliparamb Taluk in Kerala.

1.5.4 SAMPLE SIZE

This refers to the number of respondents to be selected from universe to constitute
a sample. The sample size is 45.

1.5.5 SAMPLING TECHNIQUE

Convenience sampling was used to select the sample. The convenient sample is
a non-probability sampling technique that attempts to obtain a sample of
convenient elements. In the case of a project the questionnaire methods were used
for collecting the data. With the help of this method of collecting data a sample
survey was conducted.

1.5.6 SOURCE OF DATA

Information has been collected from the both primary and secondary data

A) primary data
Primary data are those which are fresh and are collected from the first
time and thus happen to be original in character. The primary data was
collected through direct personal interviews (open minded and closed
ended questionnaires) and observation methods.

B) secondary data
Secondary data are those which have already been collected by
someone else and which already had been passed through the statistical

11
 process. The secondary data was collected through websites, books,
magazines etc.

1.6 PERIOD OF THE STUDY

The period of the study consists of December 2022 to February 2023.

1.7 LIMITATION OF THE STUDY

• Due to time and resources a countryside survey was not possible.
• Some of the respondents could not answer the questions due to lack
of knowledge.

12
 CHAPTER II
THEORETICAL FRAMEWORK & REVIEW OF LITREATURE

13
2.1 THEORETICAL PROFILE
In this competitive world almost all organisations adopt different strategies in
order to attract more consumers towards their products. With the fast moving life
style and sedentary working pattern there has been an increase in proper weight
management energy and fitness, nutrition supplement and personal care of the
people.
Healthy life begins with nitrous food and good dietary habits. Attention to diet
has become vital to counter the stress of present day lifestyle. With speed in
change in lifestyle, people prefer processed food products with preservatives, fast
foods and junk foods to cut short the tune in cooking, where these kinds of food
practices deteriorates health. Herbalife offers a complete solution for weight
management, targeted nutrition supplement energy & fitness and personal care
for all age groups for a healthy and nutritious lifestyle
Herbalife offers weight-loss and health management products. Herbalife products
are sold exclusively through independent distributors, often customers
themselves, who have been trained and educated on the Herbalife system.
Through the program, Herbalife also allows loyal dieters an opportunity to earn
and work part-time or full-time from home.
With on-the-go drink mix packets, vegetarian shake mixes and high-protein
snacks, Herbalife makes it reasonably easy for most people to follow the program.
Herbal products refer to items that are prepared and processed with the help of
the herbs. Herbs are considered to be food rather than medicine because they're
complete, all-natural and pure, as nature intended Herbal products are medicines
derived from plants. They are used as supplements to improve health and well
being, and may be used for other therapeutic purposes. Herbal products are
available as tablets, capsules, powders, extracts, teas and so on. Herbal health
products and supplements me available in many form, including in tea bags,
capsules, tablets, liquids, and powders. Herbalife offer meal replacement shakes,
dietary supplements and other health products for dieters through the Core,
Healthy Weight, Specialized Nutrition Energy and Fitness product lines.
Herbalife nutrition founder Mark Hughes dreamed of “a future brilliant beyond
compare”. His vision was aligned with improving people’s lives through better
nutrition and an unparalleled business opportunity. He turned this dream into
reality in 1980 as he launched Herbalife nutrition in Los Angeles, CA and began
rewriting the history of network marketing. 41 years later, it now operates in more
than 90 countries with over 8000 employees around the world.

14
“You can’t stop a good idea from taking hold and spreading.”
-Mark Hughes.

Herbalife Nutrition Ltd., also called Herbalife International, Inc. (with a U.S.
subsidiary called Herbalife International of America) or simply Herbalife, is a
global multi-level marketing (MLM) corporation that develops and sells dietary
supplements. The company was founded by Mark R. Hughes in 1980, and it
employs an estimated 9,900 people worldwide. The business is incorporated in
the Cayman Islands, with its corporate headquarters located in Los
Angeles, California. The company operates in 95 countries through a network of
approximately 4.5 million independent distributors and members. In October
2022, previous CEO Michael O. Johnson was appointed as Chairman and interim
Chief Executive Officer following the departure of John Agwunobi.
The company has been criticized for allegedly operating a "sophisticated pyramid
scheme". Herbalife agreed to "fundamentally restructure" its business, in the US
but not worldwide, and pay a $200 million fine as part of a 2016 settlement with
the U.S. Federal Trade Commission (FTC) following these accusations.

2.2 HISTORY
In February 1980, Mark R. Hughes began selling the original Herbalife weight
management product from the trunk of his car. Hughes often stated that the
genesis of his product and program stemmed from the weight loss concerns of his
mother Joanne whose premature death he attributed to an eating disorder and an
unhealthy approach to weight loss. His first product was a protein shake designed
to help people manage their weight. He structured his company using a direct-
selling, multi-level marketing model. In 1982, Herbalife received complaints
from the Food and Drug Administration for claims made about certain products
and the inclusion of mandrake, poke root, and food-grade linseed oil in another.
The Department of Justice of Canada filed criminal charges against the company
in November 1984 for misleading medical claims in advertisements. As a result
of the complaints, the company modified its product claims and reformulated the
product.
By 1985, the company was considered the fastest-growing private company in
America by Inc. after its sales increased from $386 thousand to $423 million over

15
the previous five years. That same year, the California Attorney General sued the
company for making inflated claims about the efficacy of its products. The
company suffered as a result of the lawsuit and was forced to lay off nearly 800
employees by May 1985. The company settled the suit for $850,000 without
admitting wrongdoing. In 1986, Herbalife became a publicly-traded company on
the NASDAQ and rebranded itself as Herbalife International. However, as a
result of the negative publicity from the FDA lawsuit, the company posted a $3
million loss that year.
By 1988, the company had expanded its reach to Japan, Spain, New Zealand,
Israel, and Mexico and increased its worldwide sales to $191 million in 1991. In
1993, the company underwent a secondary offering of five million shares. The
company launched a line of personal care products in 1995 which included
fragrances and facial cleansing products. The company was sued in civil court by
two former distributors in 1997 for withholding earned income.
In 1999, Hughes attempted to take the company private after asserting that Wall
Street was undervaluing the company. While the board approved the buyout
offer, shareholders of the company filed a suit against the firm because they
believed the share price they were offered was unfair. Hughes eventually
abandoned his attempt to buy the company and settled the suit with
shareholders. On May 20, 2000, Mark Hughes died at age 44. Following his
death, the company was led by Christopher Pair until October 2001.

Indian consumers are increasingly becoming conscious when it comes to health

and fitness and Herbalife Nutrition have addressed the growing demand in the
last 20 years through its innovative and indigenous product offerings. India's
dietary supplement market has witnessed exponential growth and is ripe for
innovation with macro tailwinds of fitness and preventive care. Herbalife
Nutrition, over the last two decades has taken significant strides to enhance its
footprint in India. The company has invested in R & D to develop local flavours
and products to cater to a range of discerning customers.

"Through the last 20 years, Herbalife has brought smiles and delight to many
athletes and health fitness enthusiasts across the world, and our focus has always
been on staying relevant to consumers who have made this journey an exciting
one. As always, we will continue to delight our consumers with healthy and
exciting new products", said Ajay Khanna, Vice President and Country Head,
Herbalife Nutrition.

16
HERBALIFE NUTRITIONAL PRODUCTS

Ocular defense 30 capsules

Ocular Defense, a scientifically designed formula, which contains ingredients

that supports eye health. Maintenance of normal vision and helps improve
macular pigment optical density (MPOD).

Triphala 60 tablets

Triphala tablet is a combination of three indigenous fruits -Indian gooseberry

(Amla), Chebulic myrobalan (Harad) and Bedda nut tree (Baheda). Triphala
supports digestive system and helps in relieving constipation. It is also Known as
antioxidant. One tablet two times a day every day.

Afresh Energy Drink Mix Kashmiri Kahwa 40 g

It contains Orange Pekoe extract, green tea extract and natural caffeine powder.
Caffeine helps you feel energized and supports alertness. Enjoy as a refreshing
beverage at any time of the day.
Mix 1 g of Afresh with 160 ml hot or cold water for a refreshing drink. Replace
your Tea/Coffee with Afresh. Not to consume more than three servings per day.
Consume not more than 500 ml per day.
MRP Rs 744.

Male Factor +
Contains blend of standardized fenugreek extract, pine bark (Pinus Gerardiana)
extract and L – Citrulline. It helps to support male sexual arousal, male sexual
health and male libido.
Take one tablet twice a day.
MRP Rs 3559.

17
Formula 1 Nutritional Shake Mix Rose Kheer 500 g
Packed with vitamins & minerals along with natural herbs, antioxidants and
dietary fiber, it provides desired protein and nutrition without overloading
unnecessary fat and calories. One serving of Formula 1 shake mix provides 90
kcals of energy. Enjoy Formula 1 shakes once or twice a day along with portion
controlled nutrition and exercise to help towards keeping the body fit.
MRP Rs 2276.

Women’s Choice
Woman’s Choice includes plant-derived ingredients, and these ingredients help
women to find their natural balance and enjoy their life. It is formulated with a
special blend of Soy isoflavones and Chasteberry. It help to support comfort &
general well-being during monthly hormonal fluctuation in women. It help
manage menopausal related quality of life.
MRP Rs 1298.

Formula 1 Nutritional Shake Mix Dutch Chocolate 500 g

Formula 1 Nutritional Shake Mix makes a great tasting shake, specifically
formulated with all necessary quality soy protein isolate, as a Nutritional Food
product for nutritional requirements.
MRP RS 2276.

Afresh Energy Drink Mix Cinnamon 50 g

Afresh Energy Drink Mix contains Orange Pekoe extract, green tea extract and
natural caffeine powder. Caffeine helps you feel energized and supports alertness.
Enjoy as a refreshing beverage at any time of the day.
Mix 1 g of Afresh with 160 ml hot or cold water for a refreshing drink. Replace
your Tea/Coffee with Afresh. Not to consume more than three servings per day.
Consume not more than 500 ml per day.
MRP Rs 848.

18
Afresh Energy Drink Mix Tulsi 50 g
Afresh Energy Drink Mix contains Orange Pekoe extract, green tea extract and
natural caffeine powder. Caffeine helps you feel energized and supports alertness.
Enjoy as a refreshing beverage at any time of the day.
Mix 1 g of Afresh with 160 ml hot or cold water for a refreshing drink. Replace
your Tea/Coffee with Afresh. Not to consume more than three servings per day.
Consume not more than 500 ml per day.
MRP Rs 848.

H24 Rebuild Strength

Recovery shake mix that delivers a tri-core protein-amino blend of free amino
acids. Whey and casein proteins help rebuild fatigued muscle. A blend of amino
acids, carbohydrate and protein help support lean muscle mass.
No artificial flavour, colour. Provides vitamins and minerals.
Consume one shake per day within 30 minutes following physical activity, use 1
serving per day.
MRP Rs 2731.

Herbal Control
Herbal Control is a blend of green, black and oolong teas and contains caffeine
that stimulates your metabolism, provides an energetic sensation and increases
alertness.
Take one tablet twice a day. Not to exceed the recommended daily usage.
MRP Rs 3584.

Herbalifeline® 60 Softgels
Herbalifeline® - Herbalife Nutrition teamed with Nobel Laureate Lou Ignarro to
develop this blend of highly purified marine lipids containing Omega-3 fatty

19
acids, such as Eicosapentaenoic Acid (EPA) and Docosahexaenoic Acid (DHA).
These Omega-3 fatty acids help to maintain a healthy cardiovascular system by
maintaining blood triglycerides levels within normal range.
One Softgel, two times per day, preferably with a meal. Not to exceed the
recommended daily usage.
MRP Rs 2785.

Formula 1 Nutritional Shake Mix Banana Caramel 500 g

Formula 1 Nutritional Shake Mix makes a great tasting shake, specifically
formulated with all necessary quality soy protein isolate, as a Nutritional Food
product for nutritional requirements. Packed with vitamins & minerals along with
natural herbs, antioxidants and dietary fiber, it provides desired protein and
nutrition without overloading unnecessary fat and calories. One serving of
Formula 1 shake mix provides 90 kcals of energy. Enjoy Formula 1 shakes once
or twice a day along with portion controlled nutrition and exercise to help towards
keeping the body fit.
MRP Rs 2276.
Afresh Energy Drink Mix Ginger 50 g
Afresh Energy Drink Mix contains Orange Pekoe extract, green tea extract and
natural caffeine powder. Caffeine helps you feel energized and supports alertness.
Enjoy as a refreshing beverage at any time of the day.
Mix 1 g of Afresh with 160 ml hot or cold water for a refreshing drink. Replace
your Tea/Coffee with Afresh. Not to consume more than three servings per day.
Consume not more than 500 ml per day.
MRP Rs 848.

Afresh Energy Drink Mix Elaichi 50 g

Afresh Energy Drink Mix contains Orange Pekoe extract, green tea extract and
natural caffeine powder. Caffeine helps you feel energized and supports alertness.
Enjoy as a refreshing beverage at any time of the day.

Mix 1 g of Afresh with 160 ml hot or cold water for a refreshing drink. Replace
your Tea/Coffee with Afresh. Not to consume more than three servings per day.
Consume not more than 500 ml per day.

20
Beta Heart Vanilla
Nutritious powder containing Oat beta-glucan as key ingredient.it is a natural
form of soluble fiber found mostly in the outer layer of oat grains. Daily intake
of 3g of oat Beta glucan helps maintain healthy blood cholesterol levels. No
added sugar. No artificial sweeteners, No added colors, Natural vanilla flavour.
MRP Rs 2342.

Herbal Aloe concentrate

Aloe soothes the stomach and is traditionally used for its digestive health benefits.
It can serve as a healthy replacement for soft drinks or high-sugar juices. It
supports nutrient absorption and intestinal health.
MRP Rs 2815.
Active fiber complex – Unflavored 200 g
Well-balanced formula improves regularity and bowel function. One serving of
Active Fiber Complex provides 5g of dietary fiber (soluble & insoluble fiber).
Take 2 times daily.
MRP Rs 2672.

Niteworks
Niteworks is a refreshing powder mix containing L-Arginine which helps create
more nitric oxide during the night. Research indicates the L-Arginine helps
produce nitric oxide, which can protect your cardiovascular health and help the
circulatory system, stay healthy. Contains vitamin C, E and folic acid.
Take 1 serving per day.
MRP Rs 7442.

Dinoshake Strawberry 200g

Great tasting shake with essential vitamins and minerals which children need
everyday. A source of Calcium, Protein and antioxidant Vitamins A, C and E.
Part of healthy eating habits for children with wholesome nutrition.

21
shake 2 scoops of Dinoshake with 240ml of milk or water. Take one shake per
day.
MRP Rs 1164.

ShakeMate
ShakeMate has been developed to help individuals to wants to use powder
formula in place of Skimmed/Soy milk in their shakes and prepare shake
anywhere, anytime. Protein Digestibility Corrected Amino Acid Score
(PDCAAS) of 1. PDCAAS is the world standard for evaluating the quality of
protein from different food sources.
MRP Rs 598.

Herbalife H24 Hydrate

Hydrate is developed by experts in sports nutrition. Replenish your body with
bioavailable electrolytes. It is of a part of a balanced and varied diet in line with
a healthy active lifestyle.
Use 1 serving per day.
MRP Rs 1709.

HN - Skin Booster - 30 Servings

Designed to nourish your skin from within and provides the nutrients to maintain
healthy skin. It is formulated with hydrolyzed fish collagen and vitamins that
required for healthy skin.
Consume 1 serving a day.
MRP Rs 4082.

Personalized Protein Powder 400 g

It is a convenient way to increase your protein consumption which helps to
maintain your energy level between meals and helps you to maintain lean muscle
mass.

22
Take 2 times a day.
MRP Rs 2594.

Cell Activator New 60 Tablets

Cell Activator is packed with select botanicals and nutrients. Contains alpha-
lipoic acid (ALA), a known antioxidant. Antioxidants help support general well-
being and healthy aging.
Take 2 tablets a day with shakes or meals.
MRP Rs 2313.

Herbalife Calcium Tablets

It is a dietary supplement that provides the calcium needed for strong, healthy
bones, along with magnesium & Vitamin D, essential for calcium absorption.
Take 1 tablet per day.
MRP Rs 1256.

Joint Support
It is a unique formula of Glucosamine, Scutellaria root extract and minerals to
help maintain healthy joint function and comfort.
Take one tablet three times a day with meals.
MRP Rs 2563.

Cell-U-Loss 90 Tablets
Cell-U-Loss is a unique herbal blend which is designed to support healthy fluid
balance.
Take 1 tablet 3 times a day.
MRP Rs 1780

23
Simply Probiotic
Simply Probiotic is a science-backed probiotic that helps promote the growth of
friendly bacteria in your system. It is specially designed for resilience, that
survives the gastric journey. It helps maintain balance with your microbiome.
Consume 1 serving per day.
MRP Rs 2306.

Aloe Plus 60 Capsules

Aloe Plus contains Aloe which supports digestion and relieves Discomfort. It
helps in better absorption of nutrients.
Take one capsule twice a day.
MRP Rs 1106.

Activated Fibre 90 Tablets

Adequate dietary fibre is essential for good health. Includes fibre from pea and
oats to increase your fibre intake.
consume one to two tablets with meal, three times per day.
MRP Rs 1709.

Brain Health
Brahmi extract helps support mental attention, learning, focus and short term
working memory. Brahmi is extensively researched for its functional benefits for
a healthy brain and supported by 11 clinical studies.
One tablet two times every day.
MRP Rs 1529.

Immune Health
Standardized extracts of Tulasi and Kalmegh in this product helps manage the
body's natural immunity and maintain a healthy life. It contains 100% pure
extracts of Kalmegh and Tulasi. It helps manage symptoms of common cold.

24
One tablet two times every day
MRP Rs 1596.

Putting across health segments in India, Herbalife nutrition today unveiled a new
flavour offering of its Herbalife 24 sports nutrition line, h24 rebuilt strength and
h24 hydrate. in a journey that started in 1997, Herbalife nutrition has set
benchmarks by finding new ways to inspire health enthusiast by combining world
class ingredients and finest products.

Herbalife nutrition product

Herbalife nutrition founder Mark Hughes dreamed of “a future brilliant beyond
compare”. Herbalife has been near the forefront of the business with operations
in India since 1999. In 2012 the company’s sales in that country rose nearly 41
percentage in local currency making it Herbalife 3rd largest market in Asia-pacific
and one of its top 10 markets worldwide with sales of about 140 million dollar.
The company has 2500 nutrition clubs in India, and all of them are sent a
disclaimer on products claims in 8 languages that is to be posted on the wall.

• In 1986 the company was listed on the NASDAQ stock exchange.

• In 2002, the company was acquired J.H Whitney and company and golden
crate capital.
• In 2004, the company was listed on the New York stock exchange.
• In 1988, the company expands rapidly throughout the world holding events
in America, Australia, the UK and Canada.
• In 1988, company continues aggressive international expansion into Japan,
Spain, New Zealand, Israel and Mexico.
• In 1991, with the help of international business, sales reach 191 million
dollar.
• In 1992, the company launches distribution and promotion of a new
innovative food products and monthly sales jump from 3.1 million dollar
to 21 million dollar per month.
• In 1993, Herbalife filed for a secondary offering of 5 million shares in
1993.

25
 • In 1994, Mark Hughes introduces the Herbalife family foundation, a
charity program dedicated to providing healthy nutrition to children in
need around the world.
• In 1995, company introduces a line of personal care products.
• In 1998, firm had expanded into turkey, Botswana, Lesotho Namibia,
Swaziland and Indonesia.
• In 2000, Herbalife is celebrating its 20th anniversary w9th more than 1
million independent partners worldwide promoting more than 100 home
and outdoor products in 50 countries.
• In 2001, expanded into morocco.
• In 2005, celebrating 25th anniversary.
• In 2010, celebrates 30 years of inspiring change in people’s lives by
establishing Herbalife nutrition institute which operates as a nutrition and
health education provider.
• In 2014, the Herbalife family foundation celebrates its 20 th anniversary
supporting over 120 organizations in more than 50 countries helping over
1 lakh children annually.
• In 2019, Herbalife nutrition is a worlds number 1 brand in meals substitutes
operating in over 94 countries with a turnover of 49 billion dollar for 2018
with more than 8300 employees.

Herbalife through Herbalife 24 series supports sports worldwide supporting 60

professional teams and leagues, Siz national Olympics committee (Greece, Italy,
Costa Rica, India and Vietnam) while continues to be the official nutrition
sponsor of the top soccer player Cristiano Ronaldo and the official nutrition
partner of the Los Angeles galaxy football team.

26
 CHAPTER III
DATA ANALYSIS AND INTERPRETATIONS

27
DATA ANALYSIS AND INTERPRETATIONS
3.1 KNOWLEDGE ABOUT THE PRODUCT
Table 3.1
KNOWLEDGE ABOUT THE PRODUCT
OPTIONS NO. OF PERCENTAGE
RESPONDENTS
TV 2 4
Friends 19 42
Relative 16 36
Others 8 18
Total 45 100
Source: primary data

KNOWLEDGE ABOUT PRODUCT

45

40

35

30

25

20

15

10

0
TV Friend Relative Others

count percentage

Figure 3.1
INTERPRETATION
Table 3.1 shows that 4 percent of the respondents got the information about the product
through television, 42 percent of the respondents got information through their friends, 36
of them got information from their relatives and remaining 18 percent got information from
others.

28
 3.2 REASON FOR USAGE
Table 3.2
REASON FOR USAGE
OPTIONS NO. OF PERCENTAGE
RESPONDENTS
Health problem 25 56
Body fitness 15 33
Others 5 12
Total 45 100
Source :primary data

REASON FOR USAGE

60

50

40

30

20

10

0
Health problem Fitness Others

count percentage

Figure 3.2

INTERPRETATION
Table 3.2 shows that 56 percent of the respondents use the product for health
problems, 33 percent of them use the product for body fitness and the remaining
12 percent of them use the product for other reasons.

29
3.3 FIRST PRODUCT USED
Table 3.3
FIRST PRODUCT USED
OPTIONS NO. OF PERCENTAGE
RESPONDENTS
Nutritional Product 30 66
Beauty Product 10 22
Child Product 5 12
Total 45 100
Source: primary data

FIRST PRODUCT USED

70

60

50

40

30

20

10

0
5

count percentage

Figure 3.3

INTERPRETATION
Table 3.3 shows that 66 percent of the respondents used Nutritional products for
the first time, 22 percent of the respondents used Beauty products for the first
time and remaining 12 percent used Child products for the first time.

30
3.4 EXPIRY TIME OF PRODUCT
Table 3.4
EXPIRY TIME OF PRODUCT
OPTIONS NO. OF PERCENTAGE
RESPONDENTS
1 month 5 11
4 months 30 67
Or more 10 22
Total 45 100
Source: primary data

EXPIRY TIME OF PRODUCT

80

70

60

50

40

30

20

10

0
1 month 4 month Or above

count percentage

Table 3.4

INTERPRETATION
Table 3.4 shows that 11 percent of the respondents state the expiry time of the
product is 1 month, 67 percent of the respondents state the expiry time of the
product is 4 month, and the remaining 22 percent states that the expiry time of a
product is more than 4 months.

31
3.5 DIET TIMETABLE
Table 3.5
DIET TIMETABLE
OPTIONS NO. OF PERCENTAGE
RESPONDENTS
Yes 24 53
No 21 47
Total 45 100
Source: primary data

DIET TIMETABLE

47

53

Yes No

Figure 3.5

INTERPRETATION
Table 3.5 shows that 53 percent of the respondents have a diet timetable and the
remaining 47 percent of the respondents does not have a diet timetable.

32
3.6 ANY ALLERGIC EXPERIENCE
Table 3.6
ANY ALLERGIC EXPERIENCE
OPTIONS NO. OF PERCENTAGE
RESPONDENTS
Yes 2 4
A kind off 3 7
No 40 89
Total 45 100
Source: primary data

ANY ALLERGIC EXPERIENCE

100
90
80
70
60
50
40
30
20
10
0
Yes A kind off No

count percentage

Table 3.6

INTERPRETATION
Table 3.6 shows that 4 percent of the respondents have an allergic experience, 7
percent of the respondents have a kind off allergic experience and the remaining
89 percent of the respondents do not have any allergic experience.

33
3.7 USAGE BY DIFFERENT AGE GROUPS
Table 3.8
USAGE BY DIFFERENT AGE GROUPS
OPTIONS NO. OF PERCENTAGE
RESPONDENTS
Yes 37 82
No 8 18
Total 45 100
Source: primary data

USAGE BY DIFFERENT AGE GROUPS

18

82

Yes No

Figure 3.7

INTERPRETATION
Table 3.7 shows that 82 percent of the respondents respond that everyone of
different age groups can use these products and remaining 18 percent of the
respondents respond that not everyone of different age groups can use these
products.

34
3.8 PRODUCT SAFETY
Table 3.8
PRODUCT SAFETY
OPTIONS NO. OF PERCENTAGE
RESPONDENTS
Yes 35 96
No 10 4
Total 45 100
Source: primary data

PRODUCT SAFETY

96

Yes No

Figure 3.8

INTERPRETATION
Table 3.8 shows that 96 percent of the respondents states the usage of this product
is safe and the remaining 4 percent of the respondents state that the usage of this
product is not safe.

35
3.9 PRODUCT SIDE EFFECT
Table 3.9
PRODUCT SIDE EFFECT
OPTIONS NO. OF PERCENTAGE
RESPONDENTS
Yes 10 22
No 35 78
Total 45 100
Source: primary data

PRODUCT SIDE EFFECT

22

78

Yes No

Figure 3.9

INTERPRETATION
Table 3.9 shows that 22 percent of the respondents states the product have side
effects and remaining 78 of the respondents states the product does not have any
side effects.

36
3.10 EXPERIENCE AFTER TAKING THE PRODUCT
Table 3.10
EXPERIENCE AFTER TAKING THE PRODUCT
OPTIONS NO. OF PERCENTAGE
RESPONDENTS
Excellent 36 80
Good 3 7
Average 6 13
Total 45 100
Source: primary data

EXPERIENCE AFTER TAKING THE PRODUCT

90

80

70

60

50

40

30

20

10

0
Excellent Good Average

count percentage

Figure 3.10

INTERPRETATION
Table 3.10 shows that 80 percent of the respondents have excellent experience
after taking the product, 7 percent of the respondents have a good experience after
taking the product and remaining 13 percent have an average experience after
taking the product.

37
3.11 SATISFACTION OF THE PRODUCT
Table 3.11
SATISFACTION OF THE PRODUCT
OPTIONS NO. OF PERCENTAGE
RESPONDENTS
Very satisfied 40 89
Satisfied 3 7
Dissatisfied 2 4
Total 45 100

Source: primary data

SATISFACTION OF THE PRODUCT

100
90
80
70
60
50
40
30
20
10
0
Very satisfied Average Dissatisfied
count percentage

Figure 3.11

INTERPRETATION
Table 3.11 shows that 89 percent of the respondents are very satisfied after using
the product, 7 percent of the respondents have an average satisfaction after using
the product and remaining 4 percent of the respondents are dissatisfied after using
the product.

38
3.12 PRICE OF THE PRODUCT
Table 3.12
PRICE OF THE PRODUCT
OPTIONS NO. OF PERCENTAGE
RESPONDENTS
Expensive 25 55
Affordable 15 33
Fair 5 12
Total 45 100
Source: primary data

PRICE OF THE PRODUCT

60

50

40

30

20

10

0
expensive affordable fair

count percentage

Figure 3.12

INTERPRETATION
Table 3.12 shows that 55 percent of the respondents state the price of the product
is expensive, 33 percent of the respondents state that the price is affordable and
remaining 12 percent of the respondents state that the price of the product is fair.

39
3.13 EFFECTIVENESS OF THE PRODUCT
Table 3.13
EFFECTIVENESS OF THE PRODUCT
OPTIONS NO. OF PERCENTAGE
RESPONDENTS
Highly effective 42 93
Moderately 2 4
Not effective 1 3
Total 45 100
Source: primary data

EFFECTIVENESS OF THE PRODUCT

100
90
80
70
60
50
40
30
20
10
0
Highly effective Moderately Not effective

count percentage

Figure 3.13

INTERPRETATION
Table 3.13 reveals, 93 percent of the respondents state that the product is highly
effective, 4 percent of the respondents state that the product is moderately
effective and the remaining 3 percent of the respondents state that the product is
not effective.

40
3.14 RECOMMEND TO SOMEONE
Table 3.14
RECOMMEND TO SOMEONE
OPTIONS NO. OF PERCENTAGE
RESPONDENTS
Friends 25 55
Relatives 10 22
Others 10 23
Total 45 100
Source: primary data

RECOMMEND TO SOMEONE
60

50

40

30

20

10

0
Friends Relatives Others

count percentage

Figure 3.14

INTERPRETATION
Table 3.14 shows that 55 percent of the respondents recommended the product to
their friends, 22 percent of the respondents recommended it to their relatives and
the remaining 23 percent recommended the product to others.

41
 CHAPTER 4

FINDINGS, SUGGESTIONS AND CONCLUSION

42
4.1 FINDINGS

1. Majority of the people got product information through friends and relatives.

2. Most of the respondents use Herbalife products for health-related problems.

3. Herbalife Nutritional products are preferred mostly by people rather than

beauty and child product.

4. A good amount of people says that the product expiry time is 4 months.

5. Majority of the respondents have a diet time table for using Herbalife
product.

6. Majority of the respondents have no allergic experience towards Herbalife

product.

7. Majority of respondents says that usage of Herbalife product is safe.

8. Most of the respondents says that different age group can use Herbalife
products.

9. Majority of respondents states that Herbalife products are free from side
effect.

10.A good amount of people felt excellent experience after taking the product.

11. Most of the people are satisfied after using Herbalife products.

43
12. Most of the people says that the product is expensive.

13. Most of people says that the product is highly effective.

14. Most of the users recommend the product to their friends.

44
4.2 SUGGESTIONS

1. Some people say that the product prices are high. The company should
make effort to reduce product price.

2. Some respondents say that the products are recommended to all age group.
The company should take an effort that the products should be used by all
age groups.

3. A strict diet plan is followed by people consuming nutritional products.

Such strict control should be minimised.

4. Herbalife Nutritional products should give more attention to the Ads and
services.

5. Company can be more vigilant towards the fraudulent company with the
same type of products available through online.

6. Products should be easily available in rural areas.

7. Promote new experimental ideas to ensure a fresh experience to new users.

8. Emphasize the creation of valuable nutrition experiences.

45
4.3 CONCLUSION

Herbalife is a global nutritional company offering a range of science-based

nutrition products that includes weight management, nutritional supplements and
personal care products intended to support a healthy life style. The purpose of
Herbalife company is to help people to healthier and happier through
personalized nutrition and proven business opportunity so that around the global,
every tomorrow is becoming better. This project provided a new way of looking
at the functioning of the nutrition industry by examining the nutritional features
of each product and its related customer suggestion.

46
REFERENCES

47
BIBLIOGRAPHY

BOOKS
1. Deepak Chawla “research methodology”
2. Sunanda Easwaran “Marketing Research”
3. Dr. K. Karunakaran “Marketing Management”
4. Mukesh Bansal “Hacking Health”

WEBSITES
1. https://en.m.wikipedia.org
2. https://www.herbalife.co.in
3. https://iamherbalifenutrition.com
4. https://www.herbalife.com

48
APPENDIX

49
 QUESTIONNAIRE

NAME :
AGE :
GENDER : MALE FEMALE
OCCUPATION :
INCOME LEVEL :
MARTIAL STATUS :
1. How did you know about Herbalife Products?
T.V
Friends
Relatives
Others

2. Why did you become interested in Herbalife Products?

Health Problems

Body Fitness

Others

3. What were the first products you used?

1.

2.

3.

4. What is the expiry period of this products?

1 Month

4 Month

Or more

50
 5. Do you diet while using this products?

Yes

No

6. Have you experienced any allergy type of diseases by using this products ?

Yes

A kind off

No

7. What is your weight before and after using the products?(KG)

After Using

Before Using

8. Can everyone of different age groups use these products?

Yes

No

9. Are the Herbalife products safe?

Yes

No

10. Does the products has any side effects?

Yes

No

11. How do you feel after taking the products for 4 weeks?
Good

Average

Excellent

51
12. Are you satisfied with the products?

Very satisfied

Average

Dissatisfied

13. How did you find the price of the products?

Accountable

Fair

Expensive

14. Is the product effective?

Highly Effective
Moderately
Not Effective

15. Have you recommend the products to someone?

Friends
Relatives
Others

52
53
 “A STUDY ON IMPACT OF AGRICULTURAL
INSURANCE WITH SPECIAL REFERANCE TO IRITTY
TALUK”
A PROJECT REPORT

Submitted by

ALBIN N DB20BR0019
LINTO MATHEW DB20BR0026
TREESA SANTHOSH DB20BR0011
SONA SABU DB20BR0039

Under the supervision of

Miss. ANJU K PAULOSE

In partial fulfilment for the award of bachelor degree in

COMMERCE

DON BOSCO ARTS AND SCIENCE COLLEGE

OF KANNUR UNIVERSIY

MARCH 2023

1
 KANNUR UNIVERSITY

BONAFIDE CERTIFICATE

Certified that this project report A STUDY ON IMPACT OF AGRICULTURAL

INSURANCE WITH SPECIAL REFERANCE TO IRITTY TALUK is the
bonafide work of ALBIN N, LINTO MATHEW, TREESA SANTHOSH and
SONA SABU who carried out the project under my supervision.

SIGNATURE SIGNATURE
Mrs. DEEPTHY JOSEPH Miss. ANJU K PAULOSE
HEAD OF THE DEPARTMENT SUPERVISOR

DEPARTMENT OF COMMERCE
DON BOSCO ARTS & SCIENCE COLLEGE
ANGADIKADAVU

2
 DECLARATION

We ALBIN N, LINTO MATHEW, TREESA SANTHOSH AND SONA SABU,

hereby declare that the project entitled A STUDY ON IMPACT OF
AGRICULTURAL INSURANCE WITH SPECIAL REFERANCE TO IRITTY
TALUK” has been prepared by us and submitted to Kannur University in partial
fulfilment of the requirements for the award of Degree of Bachelor of Commerce, is a
record of original work done by us under the supervision of Asst. Prof. Miss. ANJU K
PAULOSE of Department of Commerce, Don Bosco Arts and Science College
Angadikadavu. We also declare that this project work has not been submitted by us
fully or partly for the award of any other Degree, Diploma, Title or any other
recognition before.

Place: Angadikadavu Signature of the student

Date: Reg No:DB20BR0019

DB20BR0026
DB20BR0011
DB20BR0039

3
 ACKNOWLEDGEMENTS

We sincerely wish to express our deep sense of gratitude to all who helped us to
complete project work. First and foremost, we thank the God Almighty, for his
blessing and grace for the successful completion of the project work.

We acknowledge our gratitude to the Principal, Rev.Fr.Dr. Francis Karackat SDB,

Don Bosco Arts and Science College Angadikadavu, for giving us an opportunity to
undertake this venture.

We also extend our sincere thanks to Mrs. DEEPTHY JOSEPH, Head of the
Department of Commerce and all other staff members of the Department of Commerce,
Don Bosco Arts and Science College, Angadikadavu for making available to us their
valuable advice and sincere co-operation of study during the academic period.

We also wish to express my thanks to guide Miss. ANJU K PAULOSE Asst.

Professor, Department of Commerce for her valuable advice and timely assistance
during the period of study.

We express our gratitude to all staff members and department of commerce and all my
friends for their encouragement and co-operation.

We are indebted to our beloved parents and other family members for the great support
and care.

ALBIN N
LINTO MATHEW
TREESA SANTHOSH
SONA SABU

4
 CONTENTS

CHAPTER TITLE PAGE NO.

NO.
List of Tables

List of Chart

Chapter I Introduction 1-4

Chapter II REVIEW OF LITERATURE 5-7

Chapter III THEORATICAL 8-13

BACKGROUND
Chapter IV Data Analysis and Interpretation 14-35

V Findings, suggestions and Conclusions 36-38

Reference

Appendix

5
 LIST OF TABLES

TABLE NO. TITLE PAGE NO.

4.1 Gender wise classification 15

4.2 Educational qualification 16

4.3 Size of the family 17

4.4 Source of income 18

4.5 Monthly income 19

4.6 Kind of farming 20

4.7 Types of livestocks 21

4.8 Number of livestocks 22

4.9 Size of landholding 23

4.10 Cropping pattern 24

4.11 Risk of farming income 25

4.12 Management of agriculture risk 26

4.13 Risk management education 27

4.14 Awareness of agricultural insurance 28

4.15 Source of information 29

4.16 Users in agricultural insurance of crop/livestock 30

4.17 Time of holding agricultural insurance 31

4.18 Mitigation of risk 32

4.19 Types of company 33

4.20 Issues in availing services 34

4.21 Problem faced in agricultural insurance 35

6
 LIST OF CHARTS

TABLE NO. TITLE PAGE NO.

4.1 Gender wise classification 15

4.2 Educational qualification 16

4.3 Size of the family 17

4.4 Source of income 18

4.5 Monthly income 19

4.6 Kind of farming 20

4.7 Types of livestocks 21

4.8 Number of livestocks 22

4.9 Size of landholding 23

4.10 Cropping pattern 24

4.11 Risk of farming income 25

4.12 Management of agriculture risk 26

4.13 Risk management education 27

4.14 Awareness of agricultural insurance 28

4.15 Source of information 29

4.16 Users in agricultural insurance of crop/livestock 30

4.17 Time of holding agricultural insurance 31

4.18 Mitigation of risk 32

4.19 Types of company 33

4.20 Issues in availing services 34

4.21 Problem faced in agricultural insurance 35

7
 CHAPTER I

INTRODUCTION

8
1.1 INTRODUCTION
Agriculture sector is primary sector of Indian economy. The engagement in farming
activities considered the beginning of human civilization and an experience in group
living. However agriculture is an uncertain business in India , because their production
and farm income are frequently affected by natural disasters such as flood , drought ,
land slides ,susceptibility of agriculture to this disaster compounded by the outbreak of
epidemics. All these events severely affected farmers through loss in production and
farm income and they are beyond the control of farmers. With the growing
commercialization of agriculture , the magnitude of loss due to unfavourable
eventualities is increasing. The question how to protect farmers by minimizing such
losses. Agriculture insurance is considered an important mechanism to effectively
address the risk to output and income resulting from various natural and manmade
events.
It is necessary to protect the farmers from natural calamities , the government of india
and private companies introduce many agricultural insurance schemes throughout the
country. Schemes from government were like Prathanmantri Fasal bima Yogana ,
comprehensive crop insurance schemes, experimental crop insurance scheme , farm
income insurance scheme , national agricultural insurance, livestock insurance and so
on.

Generally , farmers do not have much awareness on agricultural insurance. The success
of agriculture insurance depends upon the awareness among farmers and the
satisfaction of the policyholder. The present study is an effort to investigate the level of
awareness of farmers towards agricultural insurance and also analyse the issue faced by
them.

1.2 STATEMENT OF THE PROBLEM

Agricultural insurance provide risk coverage for agriculture products and live Stock. In
many farmers are known about the crop insurance and the farmers less knowledge
about the livestock insurance and its scheme. Insurance is not a priority requirement
among farmers to meet the uncertainties associated with agriculture. In the
circumstances, the present study tried to answer the some of the following questions:

 What could be the reason for such law awareness about agriculture insurance?

1
 What are the factors influencing farmers?

 Whether agriculture insurance policy is able to reduce the risk of loss?

 What are the issues and constraints affected in agriculture insurance?

 What extent the policy holder knows about schemes of agriculture insurance?

1.3 OBJECTIVES
 To identify the awareness level of farmers on agricultural insurance
policy.
 To examine the satisfaction level of policy holders.
 To identify the issues and constraints in availing agricultural insurance.

1.4 SCOPE AND SIGNIFICANCE

The scope of the study is that to find out the level of awareness and satisfaction
towards agriculture insurance to identify the farmers views regarding risk coverage,
premium and so on. A sample of 45 small scale farmers are taken on the basis of
convenience sampling method and the data is collected from Iritty Taluk through
questionnaire.

Agriculture is a risky prospect ,whenever it is subjected to vagaries of natural

disasters like flood, drought and cyclone . Indian economy is predominantly an
agrarian economy . Rural insurance scheme to provide risk coverage for the
agriculture and livestock.
A review of the literature reveals that there are studies in the areas of farmers
awareness and attitude towards agriculture insurance . But they do not throw light
on the preceding awareness of small scale farmers . This study focused the
reflection of small scale farmers.

1.5 RESEARCH METHODOLOGY

The study designed as an empirical one based on the survey method. Both primary
and secondary data have been used for the smooth conduct of the study.

1.5.1 RESEARCH DESIGN

Research design is an arrangement of condition for collection analysis of data in

2
manner that to combine relevance to the research purpose. The research design
refers to the preplanning of what researchers have to study.

The nature of the study is descriptive based on the data collected from the small
scale farmers in Iritty Taluk.
1.5.2 SAMPLE SIZE

Sample size is the number of persons chosen for data collection. A sample of 45
potential respondents has been taken for this study from Iritty Taluk.
1.5.3 AREA OF STUDY

The area selected for the study was Iritty Taluk.

1.5.4 POPULATION

The total number of items or things in particular study is known as population. The
agriculturist from the Iritty Taluk is the population.
1.5.5 SAMPLE TECHNIQUE

The sample used in this study is convenient sampling. Convenient sampling is one in
which a sample is obtained by selecting such units of the universe which may be
conveniently located and contacted.
1.5.6 TOOLS FOR DATA COLLECTION

In this study, questionnaire is a tool used for data collection.

1.5.8 SOURCE OF DATA
Source of information means the origin from where the data are collected. It includes
primary and Secondary sources.
A. Primary Data
A structured questionnaire is used to collect primary data from the small scale
farmers in Iritty Taluk.
B. Secondary Data
Secondary data are selected from published sources like journals internet and
books etc. Shodhganga , Google scholar etc. Website also used.
1.6 STATISTICAL TOOLS

Statistical tool were used for systematic arrangement and analysis data. The

3
collected data were analysed by using tools like, diagram and tabulation.
1.7 PERIOD OF STUDY

The period of study was from December 2022 to February 2023.

1.8 LIMITATION OF THE STUDY

 Accurate information is depending on the response of respondent.
 This study focused only small scale of farmers.
 For the convenience only one Panchayath are selected.
 This is one of the most limiting factor, hence more samples could not
be covered.

4
 CHAPTER II
REVIEW OF LITERATURE

5
2.1 REVIEW OF LITERATURE

Sathyapriya (2013), focused on the extent of Awareness and Accessibility of rural

Insurance products among rural people in Southern India. The main objective of the
study are to study the awareness level among rural people on rural insurance products
,to study the social factors influence that influence the awareness level of rural people
on rural insurance and to investigate the factors influencing the accessibility of the
products available to the rural people .A questionnaire was framed to collect the data
and stratified random sampling was used to select the samples. The results reveal that
life insurance is predominantly opted by the rural people and the awareness on the other
insurance product is minimum. Suggestion is made to take effective measures that the
benefits of insurance reach the rural people of India. The study clearly show that the
conventional channels like word of mouth and insurance advisors play a vital role in
creating awareness about insurance among the people.

Selvaraj, (2015). Analyzed Crop Insurance makes up the loss or damage to growing
crops result in from a variety of causes such as hail or droughts, frost ,flood and
disease. The cultivators pay a premium and Protection is given to them on the same
basis as in other insurance. Crop Insurance can play extremely important and
supporting role in increasing the flow of institutional credit to the agriculture sector.
Agricultural Insurance will largely solve the problem of collateral security requirement
by banks while extending the loans. In case of Crop failure banks will receive the
payment directly from the insurance companies. Crop insurance, thus, promotes flow of
institutional credit to the agriculture sector which in turn induces farmers to adopt new
technology

Muniraju (2018) conducted to evaluate farmers perception and awareness about crop
insurance schemes in Kodagu district of Karnataka because this region receives very
high rainfall compared to other regions of the state. Though different crop insurance
scheme is operating since 2002, majority of respondents in the study area are not aware
about these schemes, implementing agency and who pays compensation. Almost all
respondents are in the wrong perception that banks will pay compensation and they are
the implementing agency. Majority of the farmers mentioned that they even don’t know
that they have included under crop insurance schemes. Financial security, protection
from the loss and compulsion by the banks were the reasons for opting crop insurance.

6
Further more than 80% of respondents are not aware of extent of coverage, premium
paid, last date of premium to be paid, procedure for insuring crops and method of loss
determination. Farmers gave suggestions for improving existing schemes and they want
quick settlement of claims which is usually takes more than one year.The study
concludes with various suggestions for increasing the awareness level of the farmers for
ensuring better penetration of crop insurance in Kodagu district.

Jamanal (2019) examined the satisfaction level of insured farmers about crop
insurance schemes in Karnataka State during the year 2017-18 by using the “Ex-
postfacto” research design. Belgavi, Dharwad, Haveri and Vijayapura districts were
selected purposively based on more number of insured farmers. Further, two taluks
from each district and from each taluk three villages (i.e. total 24 villages) were
selected randomly. The sample size for the study was 240. The findings of the study
revealed that more than half percent of the insured farmers had low level of satisfaction
with respect to crop insurance schemes followed by medium and high .The variables
such as education, land holding, annual income, extension contact and mass media
exposure exhibited positive significant relationship at five per cent level of probability
with the satisfaction level of insured farmers. In the present study farmers satisfaction
was found to be low. Thus, concerned officers should conduct awareness programs ,
inform the farmers on or before conducting the Crop Cutting experiment, make the loss
assessment procedure flexible and hassle free and disperse the claim before starting of
the next season.

Niranjan (2019) found the major implementing agencies of PMFBY in Madhya

Pradesh. The study was carried out by Agro Economic Research Centre, JNKVV,
Jabalpur. Umaria , Jabalpurand Sagar districts have been selected randomly under the
ICICI-Lombard, AIC and HDFCERGO were From each agency 40 respondents were
selected from the respective districts constituting sample size of 120 respondents.
District Cooperative Bank was found to be the main implementing bank in the area
under study. 90 per cent of the HHS availed crop insurance facility under PMFBY.
More than 80 per cent HHs were found to be aware of PMFBY and the main source of
awareness was found to be TV/Newspaper and relatives/friends followed by
government awareness programs and insurance companies among HHs. The major
events of losses were found to be yield loss followed by prevented sowing/planting due
to deficit rainfall or adverse weather .
7
 CHAPTER III
THEORATICAL BACKGROUND

8
3.1 INSURANCE

Insurance is a means of protection from financial loss. It is a form of risk management,

primarily used to hedge against the risk of a contingent or uncertain loss. An entity
which provides insurance is known as an insurer, insurance company, insurance carrier
or underwriter. A person or entity who buys insurance is known as an insured or as a
policyholder. The insurance transaction involves the insured assuming a guaranteed and
known relatively small loss in the form of payment to the insurer in exchange for the
insurer's promise to compensate the insured in the event of a covered loss. The loss may
or may not be financial, but it must be reducible to financial terms, and usually involves
something in which the insured has an insurable interest established by ownership,
possession, or pre- existing relationship.

The insured receives a contract, called the insurance policy, which details the
conditions and circumstances under which the insurer will compensate the insured. The
amount of money charged by the insurer to the policyholder for the coverage set forth
in the insurance policy is called the premium. If the insured experiences a loss which is
potentially covered by the insurance policy, the insured submits a claim to the insurer
for processing by a claims adjuster. The insurer may hedge its own risk by taking out
reinsurance, whereby another insurance company agrees to carry some of the risk,
especially if the primary insurer deems the risk too large for it to carry.

3.2 AGRICULTURAL INSURANCE

Agricultural insurance protects against loss of or damage to crops or livestock. It has

great potential to provide value to low-income farmers and their communities, both by
protecting farmers when shocks occur and by encouraging greater investment in crops.
However, in practice its effectiveness has often been constrained by the difficulty of
designing good products and by demand constraints. Agricultural insurance can
indemnify policyholders for losses, though such indemnity products are relatively rare
due to the high costs of administration and the risk of fraud. More commonly,
agricultural micro insurance is index-based, providing farmers with payouts tied to the
performance of an index (such as a rainfall gauge), rather than indemnifying them for
crop losses actually experienced. While they avoid the need for costly (and often
impossible) verification of damage, index products have a shortcoming in the form of
basis risk, the difference between the performance of the index and the damage the
9
policyholder actually suffered. In some cases, this basis risk can be quite large, but can
be reduced through improvements in the index.

3.3 HISTORY OF AGRICULTURAL INSURANCE IN INDIA

The idea to introduce agricultural insurance scheme was examined soon after the
independence in 1947, with assurance given by the Ministry of Food and Agriculture
(MOFA) in Central Legislature to introduce crop and cattle insurance. A special study
was commissioned during 1947- 48 to decide whether insurance should follow an
“Individual approach” or a “Homogenous area approach”

“Individual approach” means to indemnify the farmer to the full extent of the losses and
the premium to be paid on the basis of their own yield and loss experience.
The “Homogenous area approach” is suitable in the absence of reliable data regarding
the crop loss of individual farmer. It is intended to indemnify the loss on area basis
comprising villages that are homogenous from the point of view of crop production and
it is treated as the basic unit instead of the individual farmer. In 1965, the government
introduced a Crop Insurance Bill and distribute model scheme of crop insurance on a
compulsory basis to State governments for their valuable suggestions and opinions.
This bill helped the central government to frame a reinsurance scheme to cope with the
loss due to agricultural risks of the states. But the states were not in favor of it because
of the financial obligations involved.

On receiving the reactions of the state governments, the subject was sent for reference
to an Expert Committee, under the leadership of Dr. Dharam Narain, Chairman,
Agricultural Price Commission, in July, 1970, for full examination of the
administrative, economic, financial and act uaria implications of the subject. The
committee provides that “In the context of the paucity of resources, the country cannot
afford the huge recurring expenditure on the administration of crop insurance together
with the subsidies that may become unavoidable. Such funds could be more
advantageously utilized for raising agricultural productivity and reducing crop
variability. Since insurance represent the assumption of risks by the insurance agency
through consideration of a large number of individual risks, it is to bepreferred only if
the cost of such assumption is lower than the cost of prevention of risks. Since, under
the proposed crop insurance scheme the farmers are expected to get back by way of
indemnities what they pay by way of premium, the underlying purpose could be served

10
better and at less cost to the government if the farmers could been courage to save on a
recurring basis in the form of deposits in the banks and are provided credit on liberal
terms, especially in times of crop failure. In the conditions prevailing in the country, it
is not advisable to introduce crop insurance in the near future”. Different forms of
experiments on agricultural insurance on a limited, ad-hoc and scattered scale started
from 1972-73 when the General Insurance Corporation (GIC) of India introduced a
Crop Insurance Scheme on H-4 cotton. In the same year, 21 general insurance business
was nationalized and, General Insurance Corporation of India was set up by an Act of
Parliament. The new Corporation took over the experimental scheme in respect of H-4
cotton. This scheme was based on “Individual Approach” and later included groundnut,
wheat and potato. The scheme was implemented in the states of Andhra Pradesh,
Gujarat, Karnataka, Maharashtra, Tamil Nadu and West Bengal. It continued upto1978-
79 and covered only 3,110 farmers for a premium of Rs.4.54 lakh against the claims of
Rs.37.88 lakh.

3.3.1 Crop Insurance in India

Crop insurance in general has not been so successful across the globe in different
countries. Policy makers have unrolled various avatars of crop insurance in different
times. Considering the unique nature of Indian agriculture and inequitable socio-
economic status of Indian farmers, crop insurance has remained a failed attempt in
general. Even after repeated revision of the schemes and huge support in the form of
premium subsidies for the farmers, crop insurance has failed to produce the desired
results. Even after more than decades of existence of crop insurance in some form or
the other, it has only reached just a small percentage of the farmers.
3.3.2 Development of Crop Insurance Approaches

Crop production involves large number of risks such as natural, social, economic and
personal. Crop production is different from another activity, because of its great
dependence on nature. It faces the continuous uncertainties arising out of diverse
natural and social elements. All these elements have greatest fall on crop production.
Thus one of the basic risks is the uncertainty of crop yield, which every farmer has to
face, more or less, in all countries. But these risks are particularly high in the
developing countries like India. In India, most of the farmers are unable to bear the
risks of crop failure especially due to disastrous nature. The government of India

11
adopted various measures for helping farmers to compensate, at least partially, for loss
of their crops through natural calamities. Minimum Support Price (MSP), debt relief,
release of fund from Calamity Relief Fund (CRF), National Calamity Contingency.
Fund (NCCF) towards relief, reduction or suspension of land rent, taxes etc are the
some of the usual methods. But the farmers cannot expect them as right. During the
period of increasing commercialization and globalization, an important measure, that is
agricultural insurance was introduced. The scope and importance of agricultural
insurance are not widely understood in India. Therefore, government of India
introduced different crop insurance approaches.

The crop insurance which is generally restricted to field crops is closely related with
agricultural insurance. Crop insurance is a means of “protecting the farmers against
uncertainties of crop yields arising out of natural calamities beyond their control”
(Kulkarni, 2001)2. It is important to mention that crop insurance is based on either .
Area approach or Individual approach. Area approach is based on defined areas which
could be a district, a taluk, a block or a mandal or any other

smaller contiguous area. The indemnity limit originally was 80 per cent, which was
changed to 60 per cent, 80 per cent and 90 per cent corresponding to high, medium and
low risks areas. The actual average yield / hectare for the defined area is determined on
the basis of Crop Cutting Experiments (CCEs). These CCEs are the same conducted as
part of General Crop Estimation Survey (GCES) in various states. If the actual yield in
CCEs of an insured crop for the defined area falls short of the specified guaranteed
yield or threshold yield, all the insured farmers growing that crop in the area are
entitled for claims.
3.3.3 The claims are calculated using the formula:

(Guaranteed Yield - Actual Yield) x Sum Insured/ (Guaranteed Yield)

The claims are paid to the credit institutions in the case of loanee farmers and to the
individuals who insured their crops in the other cases. The credit institution would
adjust the amount against the crop loan and pay the residual amount, if any, to the
farmer. Area yield insurance is practically all risk insurance. This is very important for
developing countries with a large number of small farms. However, there are delays in
compensation payments. In the case of individual approach, assessment of loss is made
separately for each insured farmer. It could be for each plot or for the farm as a whole

12
(consisting of more than one plot at different locations). Individual farm-based
insurance is suitable for high-value crops grown under standard practices. Liability is
limited to cost of cultivation. This type of insurance provides for accurate and timely
compensation. How ever, it involves high administrative costs. The basic disadvantage
could arise due to changing weather patterns and poor density of weather stations.
Weather insurance helps ill-equipped economies deal with adverse weather conditions
(65% of Indian agriculture is dependent on natural factors, especially rainfall. Drought
is another major problem that farmers face). It is a solution to financial problems
brought on by adverse weather conditions. This insurance covers a wide section of
people and a variety of crops; its operational costs are low; it employs transparent and
objective calculation of weather index and quick settlement of claims (academia.edu) 3.
Further, it extends to the entire production process including post harvest storage,
processing and transportation of produce to the final markets. With passing of
Insurance Regulatory and Development Act (IRDA) 1999, a door has been opened for
the entry of private insurers. The first license for a private insurer was issued during
October, 2000. Some of the private insurers in the general insurance are Reliance, Tata-
AIG, Royal Sundaram, Iffico-Tokio Marine, Bajaj-Allianz and ICICI- Lombard. As per
the stipulations and norms of IRDA, every new insurer in the general insurance
industry, shall do at least minimum amount of business in the social sector, which
includes crop and agricultural sector. Government of India implemented different
agricultural insurance schemes. They are Pilot Crop Insurance Scheme (1979-1984),
Comprehensive Crop Insurance Scheme (1985- 1999), Experimental Crop Insurance
Scheme (1997- 1998), Pilot Scheme on Seed Crop Insurance and National Agricultural
Insurance Scheme (1999- 2000 onwards(surhistory.blogspot.com)4. In this section, an
attempt is made to study the performance of agricultural insurance in India with a
special focus on Kerala and the role of government in implementing various
agricultural insurance schemes as a risk management tool.

13
 CHAPTER IV
DATA ANALYSIS AND INTERPRETATION

14
 TABLE 4.1
GENDER WISE CLASSIFICATION OF RESPONDENTS

Gender No. of Response Percentage

Male 30 67
Female 15 33
TOTAL 45 100
Sources; primary source
CHART 4.1
GENDER WISE CLASSIFICATION OF RESPONDENT

70
60

50
40 67
30
20 33

10
0
Male Female

Interpretation
The table reveals that out of the total respondents majority (67%) are belongs to male
category and rest from female (33%)

15
 TABLE 4.2
EDUCATION QUALIFICATION OF THE RESPONDENTS

Education No. of Response Percentage

Illiterate 10 22
School 30 67
College 5 11
TOTAL 45 100
Sources; primary source

CHART 4.2
EDUCATION QUALIFICATION OF THE RESPONDENT

70
60
50
40 67
30
20
22
10 11
0
Illiterate School College

Interpretation
The above table illustrate that majority (67%) of the sample come under the category
of school Then both (22%) illiterate and (11%) graduated respondents are very low.

16
 TABLE 4.3
SIZE OF THE FAMILY

Size of family No. of Response Percentage

Nuclear 36 80
Joint 9 20
TOTAL 45 100
Sources; primary source

CHART 4.3
SIZE OF THE FAMILY

80
70
60
50
80
40
30
20
20
10
0
Nuclear Joint

Interpretation
In this table most (80%) of the respondents are belongs to nuclear family compared to
joint family

17
 TABLE 4.4

SOURCE OF INCOME

Income No. of Response Percentage

Farming 19 42

Non farming 4 9

Both 22 49

TOTAL 45 100
Sources; primary source

CHART 4.4
SOURCE OF INCOME

50
45
40
35
30
49
25 42
20
15
10
9
5
0
Farming Non farming Both

Interpretation
Most of the (49%) farmers earn income from farming and non-farming activities

18
 TABLE 4.5
MONTHLY INCOME

Income No. of Response Percentage

Below 25000 23 51
25000-50000 13 29
50000-75000 7 16
Above 75000 2 4
TOTAL 45 100
Sources; primary source

CHART 4.5
MONTHLY INCOME

60

50

40

30
51

20
29

10 16
4
0
Below 25000 25000-50000 50000-75000 Above 75000

Interpretation
Majority of (51%) the respondents monthly income is below 25000.

19
 TABLE 4.6
KIND OF FARMING

Kind of farming No. of Response Percentage

Live stock 22 49
Crop 23 51
TOTAL 45 100
Sources; primary source

CHART 4.6
KIND OF FARMING

51

50.5

50
51
49.5

49
49
48.5

48
Live stock Crop

Interpretation
Half of the famers are doing crop and another half are livestock

20
 TABLE 4.7
TYPES OF LIVESTOCK

Livestock No. of Response Percentage

Cow 12 55

Buffalo 3 13

Goat 5 23

Others 2 9

TOTAL 22 100

Sources; primary source

CHART 4.7
TYPES OF LIVESTOCK

60

50

40

30 55

20
23
10 13
9
0
Cow Buffalo Goat others

Interpretation
Most of livestock farmers are using cow for farming(55%).

21
 TABLE 4.8
NUMBER OF LIVESTOCKS

Number of live stocks No. of Response Percentage

Only one 6 27

2-3 12 55

4-7 3 14

Above7 1 4

TOTAL 22 100

Sources; primary source

CHART 4.8
NO OF LIVESTOCK

60

50

40

30 55

20
27
10 14
4
0
Only one 2--3 4--7 Above 7

Interpretation
Majority of farmers have 2-3 livestock(55%).

22
 TABLE 4.9
SIZE OF LANDHOLDING

Size of landholding No. of Response Percentage

One acre 7 31

Half acre 12 55

1/3acre 2 9

Below1/3acre 1 5

TOTAL 22 100

Sources; primary source

CHART 4.9
SIZE OF LANDHOLDING

60

50

40

30 55

20
31

10
9
5
0
One acre Half acre 1/3 acre Below 1/3 acre

Interpretation
Majority of farmers use Half acre for farming(55%).Very less farmers use below1/3
acre for farming (5%).
\

23
 TABLE 4.10
CROPPING PATTERN
Cropping pattern No. of Response Percentage

Kharif 3 13

Rabi 2 9

Both 18 78

TOTAL 23 100

CHART 4.10
CROPPING PATTERN

80

70

60

50
78
40

30

20

10 13 9
0
Kharif Rabi Both

Interpretation
Majority of farmers plot both kharif and rabi crop(78%).

24
 TABLE 4.11
RISK FOR FARMING INCOME

Risk for farming income No. of Response Percentage

2 4
Lack of access to input
Change in input cost 5 1
Disease 28 63
Excess rain 6 13
Drought 1 2
Temperature 3 7
TOTAL 45 100
Sources; primary source

CHART4.11
RISK FOR FARMING INCOME

70

60

50

40
63
30

20

10 13
11 7
4 2
0
Lack of Change in Disease Excess rain Drought Temperature
access to input cost
input

Interpretation
Majority of the risk for farming income from diseases(63%) and excess rain(13%).

25
 TABLE 4.12
MANAGEMENT OF AGRICULTURE RISK

Agriculture risk No. of Response Percentage

Yes 21 47

No 24 53

TOTAL 45 100

Sources; primary source

CHART4.12
MANAGEMENT OF AGRICULTURE RISK

53
52
51
50
49 53
48
47
46 47
45
44
Yes No

Interpretation
Most farmers are not able to manage agriculture risk(53%) where as some of others
are able to manage agriculture risk(47%).

26
 TABLE 4.13
RISK MANAGEMENT EDUCATION

Risk management education No. of Response Percentage

Yes 7 38

No 28 62

TOTAL 45 100

Sources; primary source

CHART 4.13
RISK MANAGEMENT EDUCATION

70

60

50

40
62
30
38
20

10

0
Yes No

Interpretation
Most farmers do not get risk management education(62%).

27
 TABLE 4.14
AWARENESS OF AGRICULTURAL INSURANCE

Awareness No. of Response Percentage

Yes 42 93

No 3 7

TOTAL 45 100

Sources; primary source

CHART4.14
AWARENESS OF AGRICULTURAL INSURANCE

100
90
80
70
60
93
50
40
30
20
10 7
0
Yes No

Interpretation
Most farmers are becoming aware of agricultural insurance(93%).

28
 TABLE 4.15
SOURCE OF INFORMATION

Information No. of Response Percentage

Fellow farmers 23 51

Bank/financial institution 16 36

Newspaper/tv/radio 4 9

Agriculture department 2 4
officials
Any others 0 0

TOTAL 45 100

Sources; primary source

CHART4.15
SOURCE OF INFORMATION

60

50

40

30
51
20 36

10
9
4
0
0
Fellow farmers Bank /financial Newspaper Agriculture Any others
institution /tv/radio department
officials

Interpretation
Majority of farmers get information from their fellow farmers (51%).

29
 TABLE 4.16
USERS IN AGRICULTURAL INSURANCE OF CROP/LIVE STOCK

Users No. of Response Percentage

Yes 45 100

No 0 0

TOTAL 45 100

Sources; primary source

CHART4.16
USERS IN AGRICULTURAL INSURANCE OF CROP/LIVE STOCK

100
90
80
70
60
50
40
30
20
10
0
Yes No

Interpretation
All farmers are taking the agricultural insurance policy(100%).

30
 TABLE 4.17
TIME OF HOLDING AGRICULTURAL INSURANCE

Time of holding No. of Response Percentage

Below3years 28 62

3-5year 10 23

Morethan5years 8 15

TOTAL 45 100

Sources; primary source

CHART4.17
TIME OF HOLDING AGRICULTURAL INSURANCE

70

60

50

40
62
30

20
23
10 15

0
Below 3 years 3-5 year More than 5 years

Interpretation
Majority of the respondents holding agricultural insurance below 3 year(62%).

31
 TABLE 4.18
MITIGATION OF RISK

Mitigation of risk No. of Response Percentage

Strongly agree 0 0

Agree 1 2

Neutral 27 60

Disagree 13 29

Strongly disagree 4 9

TOTAL 45 100

Sources; primary source

CHART4.18
MITIGATION OF RISK

60

50

40

60
30

20
29
10
9
0 2
0
Strongly agree Agree Neutral Disagree Strongly
disagree

Interpretation
Majority of the farmers are neutral to the mitigation of risk using agriculture
insurance (60%).

32
 TABLE 4.19
TYPE OF COMPANY

Types of company No. of Response Percentage

Private 5 11

Public 40 89

TOTAL 45 100

Sources; primary source

CHART4.19
TYPE OF COMPANY

90
80
70
60
50 89
40
30
20
10 11

0
Private Public

Interpretation
Majority of farmers means (89%) took insurance from public company
only(11%)took insurance from private.

33
 TABLE 4.20
ISSUES IN AVAILING SERVICES

Availing services No. of Response Percentage

Yes 35 77

No 10 23

TOTAL 45 100

Sources; primary source

CHART 4.20
ISSUES IN AVAILING SERVICES

80
70
60
50
77
40
30
20
23
10
0
Yes No

Interpretation
Most of policy holders (77%) are face issues in availing services from agriculture
insurance.

34
 TABLE 4.21
PROBLEMS FACED IN AGRICULTURAL INSURANCE

Problems faced No. of Response Percentage

Lack of customer services 9 20

No prompt claim settlement 24 53

Lack of agent service 4 9

Lack of e service 8 18

TOTAL 45 100

Sources; primary source

CHART 4.21
PROBLEMS FACED IN AGRICULTURAL INSURANCE

60

50

40

30 53
20
20 18
10
9
0
Lack of customer No prompt claim Lack of agent Lack of e service
services settlement service

Interpretation

Majority of the (53%) farmers problem is no prompt claim settlement.

35
 CHAPTER V
FINDINGS, SUGGETIONS & CONCLUSION

36
5.1 FINDINGS

 To find out the awareness level of farmers on agricultural insurance policy

 All farmers are taking the agricultural insurance
 Most of the farmers have very little knowledge about agricultural insurance.
 Most of the farmers are unaware of the central government’s schemes.
 Most of the farmers get information about agriculture insurance from fellow
farmers.

 Most farmers do not get risk management education.

 All of farmers are aware about the agriculture insurance but not more aware
about the various Central Government schemes and its benefit.

To find out the satisfaction level of policy holders

 It is found that majority of farmers are taking insurance at the public company
than private.

 While most farmers are satisfied with the services of the insurance provider,
they face fewer problems.
 Majority of farmer’s opinion that there is no prompt claim settlement system.
 Most of the farmers are not satisfied or neither dissatisfied with the attitude of
insurance company.
 The farmers have lack of interest about the agriculture insurance due to lack of
agent services and fear.
 Majority of the respondents are not satisfied or neither dissatisfied with interest
rate.
Most farmers are satisfied with the services of the insurance provider, they
face fewer problems.

To find out the issues and constraints in availing agricultural insurance

 Most of policy holders are face issues in availing services from agriculture
insurance.

 Majority of the farmers face the problem of changing input price.

37
  Majority of the farmer’s problem is no prompt claim settlement.
 Most of the farmers say the amount of loss not fully covered.
 Most of the farmers are able to manage the agricultural risk through their own
mechanism such as income from other sources, multiple crops etc.
 Majority of farmers problems are no prompt claim settlement system and
amount of loss not fully covered.

5.2 SUGGESTIONS
 Lack of awareness about the benefit of agriculture insurance is the main
reason for not taking insurance. Hence it is better to arrange risk
management awareness classes or programs through medias.
 Government, both central and state, should ensure the participation of
farmers for taking agriculture insurance.
 Compulsory insurance coverage should be given to all farmers whether
they are take loan or not.
 It is better to make speedy settlement of claims and also cover more crops.

 Private insurance company have to take necessary initiatives to

provide livestock insurance because majority of the respondent
expressed that only public companies serving them at present.
 Insurance coverage should be provided not only for natural calamities
but also for pest attack and diseases such as red root, brown spot, false
smut, etc. These have to be included in the list of risk and the loss for
indemnity.

5.3 CONCLUSION
The present study entitled “impact of agricultural insurance” established the fact
that all of farmers in Iritty Taluk are aware about the agriculture insurance but
not more aware about the various Central Government schemes and its benefit,
procedure to acquire and renew insurance policy . However, there are some
reasons which make lack of attractiveness among farmers, such reasons are loss
amount not fully covered, delay in settlement of claims etc. Thus insurance
company has to provide or create awareness through proper promotional
measures and make necessary adjustment for reducing the procedural difficulty.

38
REFERENCE

39
Books
 muniraju, y. (2018). crop insurance: farmers perception and awareness–a
study with special reference to kodagu district. international journal of
research in economics and social sciences (ijress), 8(2).
 Jamanal, S. K., Natikar, K. V., & Halakatti, S. V. (2019). Satisfaction Level
of Insured Farmers about Crop Insurance Schemes in Northern Karnataka.
Current Journal of Applied Science and Technology, 1-8
 Niranjan, H. K., Chouhan, R. S., Sharma, H. O., Kuri, A., & Thaku, S. S.
(2019). Insurance Behaviour of Insured Farmers under Pradhan Mantri Fasal
Bima Yojna (PMFBY) in Central India. Asian Journal of Agricultural
Extension, Economics & Sociology, 1-6.
 Sathyapriya, M. S.(2013). a study on awareness and accessibility of rural
insurance products among rural people.
 Selvaraj, D. A. (2015). Crop Insurance: a study with farmers‟ awareness
and satisfaction.International Journal of Current.

Websites
www.shodhganga.inflibnet.ac.in
www.googlescholar.com.in www.ask.com

40
APPENDIX

41
 QUESTIONNAIRE

Age:

Sex: male  female 

Education: illiterate  school  college 

Size of family: nuclear  joint 

Source of income: farming  non farming  both 

Monthly income: below 25000  25000-50000  50000-75000 

above 75000 

1 What kind of farming are you involved in?

livestock  crop 
2 if livestock
3 What are the livestock you have?

Cow  buffalo  goat  others 

4 No of livestock you have?
Only 1  2-3  4-7  above 7 
5 Size of land holding
1hector  ½ hector  1/3 hector  below 1/3 
6 cropping pattern performed?
Kharif  rabi  both 
7 What are the main risk for farming income?
Lack of access to input  change in input cost  didease 
Excess rain  drought  temperature 
8 can you manage the agricultural risk
yes  no 
9 if yes specify the source of information
……………………………………………………………….

42
10 did you get any risk management education
yes  no 
11 do you aware about agriculture insurance
\yes  no 
if yes, specify the source of information
fellow farmers  bank/ financial institution  paper/t v / radio 
agriculture department official  any other 
12 did you insure your crop /livestock
yes  no 
13 if yes ,since how long you are a holder of agriculture insurance
below 3 yrs  3-5 yrs  more than 5 yrs 
14 whether the premium you are paying reasonable ore not
highly reasonable  medium  low 
15 Agricultural insurance help to mitigate of risk related to your farming
strongly agree  agree  neutral disagree  strongly disagree 
16 which type of company you took insurance policy
private  public 
17 do you face any issues in availing services from agricultural insurance
yes  no 
18 if yes ,what are the problems thatyou faced

lack of customer services  no prompt claim settlement  lack of agent

services  lack of e services 
19 do you face any constraints in agricultural insurance

yes  no 

43
A STUDY ON PRICING STRATEGY ADOPTED BY
MANUFACTURERS OF FMCG’S IN IRITTY TALUK

A PROJECT REPORT

Submitted by

ALRAJ ANANDHAN (REG No: DB20BR0021)

ABHISHEK T S (REG No: DB20BR0013)
ALEENA C (REG No: DB20BR0032)
ANANDHU K S (REG No: DB20BR0022)

Under the supervision of

Ms. SHILPA VICHITHRAN

In partial fulfilment for the award of bachelor degree in

COMMERCE

DON BOSCO ARTS AND SCIENCE COLLEGE

OF KANNUR UNIVERSIY

MARCH 2023

1
 KANNUR UNIVERSITY

BONAFIDE CERTIFICATE

Certified that this project report “A STUDY ON PRICING STRATEGY ADOPTED

BY MANUFACTURERS OF FMCG’S IN IRITTY TALUK” is the bonafide work of
ALRAJ ANANDHAN, ABHISHEK T S, ALEENA C, ANANDHU K S who carried
out the project under my supervision.

SIGNATURE SIGNATURE
Mrs. DEEPTHY JOSEPH Ms. SHILPA VICHITHRAN
HEAD OF THE DEPARTMENT SUPERVISOR

DEPARTMENT OF COMMERCE
DON BOSCO ARTS & SCIENCE COLLEGE
ANGADIKADAVU

2
 DECLARATION

We ALRAJ ANANDHAN, ABHISHEK T S, ALEENA C and ANANDHU K S,

hereby declare that the project entitled “A STUDY ON PRICING STRATEGY
ADOPTED BY MANUFACTURERS OF FMCG’S IN IRITTY TALUK” has been
prepared by us and submitted to Kannur University in partial fulfilment of the
requirements for the award of Degree of Bachelor of Commerce, is a record of original
work done by us under the supervision of Asst. Prof. Ms. SHILPA VICHITHRAN of
Department of Commerce, Don Bosco Arts and Science College, Angadikadavu.

We also declare that this project work has not been submitted by us fully or partly for the
award of any other Degree, Diploma, Title or any other recognition before.

Place: Angadikadavu Signature of the student

Date: Reg No:DB20BR0021

DB20BR0013
DB20BR0032
DB20BR0022

3
 ACKNOWLEDGEMENT

We sincerely wish to express our deep sense of gratitude to all who helped us to
complete project work. First and foremost, we thank the God Almighty, for his blessing
and grace for the successful completion of the project work.

We acknowledge our gratitude to the Principal, Rev.Fr.Dr. Francis Karackat SDB,

Don Bosco Arts and Science College Angadikadavu, for giving us an opportunity to
undertake this venture.

We also extend our sincere thanks to Mrs. DEEPTHI JOSEPH, Head of the
Department of Commerce and all other staff members of the Department of Commerce,
Don Bosco Arts and Science College, Angadikadavu for making available to us their
valuable advice and sincere co-operation of study during the academic period.

We also wish to express my thanks to guide Ms.SHILPA VICHITHRAN. Asst.

Professor, Department of Commerce for her valuable advice and timely assistance
during the period of study.

We express our gratitude to all staff members and department of commerce and all my
friends for their encouragement and co-operation.

We are indebted to our beloved parents and other family members for the great support
and care.

ALRAJ ANANDHAN
ABHISHEK T S
ALEENA C
ANANDHU K S

4
 CONTENTS

PAGE
CHAPTER TITLE
NO.

LIST OF TABLES

LIST OF CHART

1 INTRODUCTION 1-5

REVIEW OF LITERATURE AND

2 6-14
THEORATICAL FRAMEWORK

3 DATA ANALYSIS AND INTERPRETATION 15-39

FINDINGS, SUGGESTIONS AND

4 40-44
CONCLUSION

BIBLIOGRAPHY

ANNEXURE

5
 LIST OF TABLES
CHART CHART NAME PAGE
NO NO.

3.1 CLASSIFICATION ON THE BASIS OF TURNOVER OF 16

BUSINESS
3.2 CLASSIFICATION ON THE BASIS OF NUMBER OF 17
BRANCHES
3.3 CLASSIFICATION ON THE BASIS OF AREA OF 18
BUSINESS OR CATEGORY OF PRODUCTS
3.4 CLASSIFICATION OF THE BASIS OF AREA OF 19
OPER’’ATIONS OF BUSINESS
3.5 CLASSIFICATION ON THE BASIS OF NUMBER OF 20
EMPLOYESS
3.6 CLASSIFICATION ON THE BASIS OF DIFFICULTIES 21
FACED WHILE FIXING PRICES
3.7 CLASSIFICATION ON THE BASIS OF PROVIDING 22
DISCOUNT
3.8 CLASSIFICATION ON THE BASIS OF MARKET AND 23
DEMAND
3.9 CLASSIFICATION ON THE BASIS OF GOVERNMENT 24
POLICIES
3.10 CLASSIFICATION ON THE BASIS OF COMPANY 25
OBJECTIVES
3.11 CLASSIFICATION ON THE BASIS OF PRODUCT 26
QUALITY
3.12 CLASSIFICATION ON THE BASIS OF COST OF 27
PRODUCTION
3.13 CLASSIFICATION ON THE BASIS OF COMPETITIVE 28
POLICES AND STRATEGIES
3.14 CLASSIFICATION ON THE BASIS OF CUSTOMER 29
TASTE AND PREFERENCE

6
3.15 CLASSIFICATION ON THE BASIS OF ECONOMIC 30
CONDITION SUCH AS INFLATION AND RECESSION
3.16 CLASSIFICATION ON THE BASIS OF SIZE OF THE 31
PRODUCT
3.17 CLASSIFICATION ON THE BASIS OF CUSTOMER 32
LOCATION
3.18 CLASSIFICATION ON THE BASIS OF INITIAL LOW 33
PRICE
3.19 CLASSIFICATION ON THE BASIS OF INITIAL HIGH 34
PRICE
3.20 CLASSIFICATION ON THE BASIS OF PRICE BASED ON 35
THE QUALITY OF PRODUCT
3.21 CLASSIFICATION ON THE BASIS OF PRICE BASED ON 36
CUSTOMER PERCEPTION
3.22 CLASSIFICATION ON THE BASIS OF CREDIT SALES 37
3.23 CLASSIFICATION ON THE BASIS OF FANCY 38
NUMBERS
3.24 CLASSIFICATION ON THE BASIS OF ODD NUMBER 39
PRICING

7
 LIST OF CHARTS
CHART CHART NAME PAGE
NO NO.
3.1 CLASSIFICATION ON THE BASIS OF TURNOVER OF 16
BUSINESS
3.2 CLASSIFICATION ON THE BASIS OF NUMBER OF 17
BRANCHES
3.3 CLASSIFICATION ON THE BASIS OF AREA OF 18
BUSINESS OR CATEGORY OF PRODUCTS
3.4 CLASSIFICATION OF THE BASIS OF AREA OF 19
OPER’’ATIONS OF BUSINESS
3.5 CLASSIFICATION ON THE BASIS OF NUMBER OF 20
EMPLOYESS
3.6 CLASSIFICATION ON THE BASIS OF DIFFICULTIES 21
FACED WHILE FIXING PRICES
3.7 CLASSIFICATION ON THE BASIS OF PROVIDING 22
DISCOUNT
3.8 CLASSIFICATION ON THE BASIS OF MARKET AND 23
DEMAND
3.9 CLASSIFICATION ON THE BASIS OF GOVERNMENT 24
POLICIES
3.10 CLASSIFICATION ON THE BASIS OF COMPANY 25
OBJECTIVES
3.11 CLASSIFICATION ON THE BASIS OF PRODUCT 26
QUALITY
3.12 CLASSIFICATION ON THE BASIS OF COST OF 27
PRODUCTION
3.13 CLASSIFICATION ON THE BASIS OF COMPETITIVE 28
POLICES AND STRATEGIES
3.14 CLASSIFICATION ON THE BASIS OF CUSTOMER 29
TASTE AND PREFERENCE
3.15 CLASSIFICATION ON THE BASIS OF ECONOMIC 30
CONDITION SUCH AS INFLATION AND RECESSION
8
3.16 CLASSIFICATION ON THE BASIS OF SIZE OF THE 31
PRODUCT
3.17 CLASSIFICATION ON THE BASIS OF CUSTOMER 32
LOCATION
3.18 CLASSIFICATION ON THE BASIS OF INITIAL LOW 33
PRICE
3.19 CLASSIFICATION ON THE BASIS OF INITIAL HIGH 34
PRICE
3.20 CLASSIFICATION ON THE BASIS OF PRICE BASED ON 35
THE QUALITY OF PRODUCT
3.21 CLASSIFICATION ON THE BASIS OF PRICE BASED ON 36
CUSTOMER PERCEPTION
3.22 CLASSIFICATION ON THE BASIS OF CREDIT SALES 37
3.23 CLASSIFICATION ON THE BASIS OF FANCY 38
NUMBERS
3.24 CLASSIFICATION ON THE BASIS OF ODD NUMBER 39
PRICING

9
 CHAPTER I

INTRODUCTION

10
1.1 INTRODUCTION
Our marketing environment has witnessed huge changes in these last few years. The fast
changing global business environment has led to more competition, increased consumer
choice, lower prices, lower margin and replacement of tangible assets with information

Price is a value attached to product by consumer at some point in time. The price value is
the payment for a product or service or exchange something of value, usually money is
used for payment. Price is determined by the value that consumer perceive in the
product. The value result from their perception of the total satisfaction provided by the
product. Price of a product is associated with value, quality and durability and
performance. Price must reflect the total cost of producing the product and marketing the
product.

For consumers price paid means a sacrifice of purchasing power. For the seller, price is a
source of revenue and a determinant of profit
Price is an offer used to enhance the Image of product and to increase sales through
discount pricing. Selecting a pricing strategy is critical because price is the most visible
element of all marketing effort.

FMCG sales make up for more than half of all consumer spending. Meaning, that more
than 50% of what consumers spend goes on FMCG goods. According to BEA (Bureau
of Economic Analysis), the amount of money going to FMCG organisations was $13
trillion in the second quarter of 2020. However, that’s down by 34.6% compared to the
first quarter of this year, which was already down by 6.9% from 2019. But, the strange
thing is that in spite of the large amount of money we’re all spending on grocery goods
each quarter, FMCG organisations profit margins are surprisingly slim, averaging at 3-
10%.

The first areas ripe for FMCG pricing strategy transformations is existing FMCG
channel strategy and go to market process. It would be safe to say, that most FMCG
pricing strategy is still focused on an old-fashioned dysfunctional relationship with their
retail customers. To the extent that now most leading FMCG suppliers haven’t got or
haven’t yet implemented a direct to market, online channel strategy to serve a rapidly
growing customer base (currently equalling 20-30% of total sales)

1
1.2 STATEMENT OF PROBLEM
Price is an important aspect of any firm especially firms whose goal is to maximise the
their profits. Each price has a different implication for profits, sales revenue and market
share. Some firm may set a low price in order to gain easy market penetration and build
a bigger market share.
Manufactures of FMCG’S plays an important role in the economic development by
paying taxes to the government. Offering employment and sustaining the advertising
industry. FMCG’S sector has to a large effect aided in the economic growth of this
national as well as helped to improve the standards of living of natives.

The proposed study therefore seeks to fill the gap by providing answers to the questions
relating to various pricing strategies in FMCG and the challenges in adopting various
pricing strategies.

1.3 SIGNIFICANCE & SCOPE OF THE STUDY

This study is conducted to find out various pricing strategies adopted by manufacturers
of FMCG in Iritty Taluk and to know about factors influencing the pricing strategies The
study will include all manufacturers in the fast moving consumer goods industry in Iritty
Taluk. A few manufacturers in Iritty Taluk has been chosen to be part of the study by
virtue give of their size and type of products manufactured. The firms in Iritty Taluk
include Frozen Ice creams, MNS Flour product etc.

1.4 OBJECTIVES
 To study various pricing strategy adopted by manufactures of FMCG in Iritty
Taluk
 To identify the factors which influence the choice of pricing strategies
 To study the challenges faced by firms in using the various pricing strategy

1.5 RESEARCH METHODOLOGY

Research methodology is a way to systematically solving how the research is a science

of studying problem. It is science of studying how the research is done. Research has

2
explained the methods and steps adopted for achieving the purpose of study and to
arrive at a meaning full conclusion

1.6 RESEARCH DESIGN

This study is designed as an descriptive research based on surveys and fact finding
enquiries

1.7 POPULATION

A population is defined as a group individuals of the species living and inter breeding
within a given area. Here the population is infinite, that means the population cannot be
measured in this study the number of manufactures of the FMCG’S are the targeted
population

1.8 SAMPLE TECHNIQUES

The sample technique used in study is convenience sampling. A convenience sampling
is one in which the only criteria for selecting sampling unit which is convenience of the
researcher.

1.9 SAMPLE SIZE

Sample size is the total number of samples select in the study. Here the sample size
chosen for the study is 45.

1.10 SOURCE OF DATA

Both primary and secondary data were collected for the purpose of study

A. PRIMARY DATA
Data that been collected from first- hand experience is known as primary data.
Primary data has been not published yet and is more reliable, authentic and objective.
Here primary data collected from Iritty Taluk on the basis of questionnaire.

3
B. SECONDARY DATA
Secondary data means data which already collected for other purpose. Here secondary
data was collected from books, magazines, journals, which help to understand the
pricing strategy adopted by manufacturers.

1.11 TOOLS FOR DATA COLLECTION

In this study questionnaire is used to collect data from customers. The questionnaire
contains multiple choice questions.

1.12 AREA OF STUDY

The study is conducted at Iritty Taluk in Kerala, India

1.13 PERIOD OF STUDY

The period of study is DECEMBER 2022 to FEBRUARY 2023

1.14 LIMITATION OF STUDY

 The main limitation was in accessing the operational managers who represented
the views of the organization.
 Most of them were very busy and many visits were made to trace them.
 Finally the study used employees in managerial perspective. This approach
leaves other major players. For instance customer perspective out of the picture.

1.15 CHAPTER SCHEME

Chapter I - Introduction and design of the study : the chapter deals with preamble
significance of the study, statement of the problem, objective of the study, methodology
of the study and limitations

Chapter II - Review of literature and theoretical background of the study : Following

the introductory chapter, chapter 2 deals with theoretical background and review of
various literatures on this area and area which are relevant to study

4
Chapter III - Data analysis and interpretations : In tune with the objectives, the
presentation of data for analysis and interpretations were done in systematic manner with
necessary tables.

Chapter IV – Findings, suggestions and conclusion : This chapter provides brief

summary of findings, suggestions, which drawn on the basis of the result of the study
and conclusion

5
 CHAPTER II

REVIEW OF LITERATURE & THEORETICAL

FRAMEWORK

6
INTRODUCTION
Fast Moving Consumer goods have been in existence since time immemorial. In this
chapter a review of what others have done have been attempted. Fast Moving consumer
goods are so diverse that just a few areas have been covered for the Purpose of this
study. The main areas covered in literature review include the concept of Pricing,
objectives of pricing as well as pricing strategies such as premium pricing, value Pricing,
penetration pricing, cost-plus pricing and competitive pricing. Other factors Covered in
the literature review include factors that may influence price such as buyers, Economic
conditions, costs and government policies. A lot has also been highlighted as Far as fast
moving consumer goods are concerned.

Pricing

Price is the value attached to a product by consumers at some point in time. Price refers
To what consumers pay for a product or service or exchange something of value usually
Money for a bundle of satisfaction. Price is determined by the value that Consumers
perceive in tire product. That value results front their perceptions of the total Satisfaction
provided by the product. Price of a product is associated with value, quality and
performance. Price can also apply to material goods which carry a price tag. Price For
labour, price for tuition and rent. For the consumer price paid means a Sacrifice of
purchasing power. Money spent on u product cannot be available for Something else.
For the seller price is a source of revenue and a determination of profit. It is revenue
expectation for a sale. A products price has a strong effect on Sales. For some products
an increase in price may result to an increase in revenue. Market price affects the price of
factors of production. Such factors are rent for land, Wages for labour, and interest for
capital and profit for enterprise. Therefore price Allocates economic resources for
optimum production, distribution and consumption of Goods. Price has social and
psychological effects on consumers. Some Products have concealed d values and
benefits which cannot be evaluated rationally. In Such cases, price is an indicator of
quality and value for many customers.

In fast moving consumer goods and other products, the product physical attributes such
As colour, size, packaging, brand name, material used and label may all influence the
Price either directly or indirectly. With reference to distribution, such Aspects as
channels used, location, vehicles and stock can transmit a firm’s price. The list price,

7
discounts, allowances, payment period and credit terms Can all affect the price of a
product. Promotion methods used also has a great effect on The product’s price.
Discounts, allowances, cents-off, refund offers and Loss leader prices are all attempts to
reduce the price in order to promote sales.

Objectives of pricing

Every marketing activity, including pricing should be directed towards a goal. To be

Useful the pricing objective selected by management must be compatible with the
overall Goals set by the company and the goals of its marketing programme. Profit
oriented goals includes achieving a target return or maximizing profit thus to Maximize
return on investment. Sales oriented objectives include sales growth or market share
growth. Status quo Oriented objectives involves stabilizing prices to meet competition,
discourage entrants, And speed exit of marginal firms, maintain price leadership,
discourage price-cutting and Stabilize market prices and establish market position. A
company can also Pursue any five major objectives through pricing: survival, maximum
current profit, Maximum market share, maximum market skimming and product quality
determined that when a firm has knowledge of its demand and cost Functions, the
companies estimate the demand and costs, associated with alternative Prices and chooses
the price that produces maximum current profit, cash flow or rate of Return on
investment.

Pricing strategies

Selecting a pricing strategy for FMCGS (Fast Moving Consumer goods) is a critical
Function for the manufacturers of such products. This is because price is one of the most
Visible elements of all marketing effort . Most manufacturers know The minimum price
one must charge to break even and the maximum price that can be Charged based on an
estimate of customer demand. Costs and demand estimates provide Them with the
amount of price flexibility available in pricing of the product. Competition And profit
objectives will then factor in to determine the price that can be charged for the Product.
Well, most companies subscribe to one of the following main pricing strategies

Premium Pricing

Premium pricing is used when the product has one or more unique characteristics. This
Uniqueness differentiates the product greatly from competition and creates a significant
Competitive advantage. I his strategy demands a high-quality item to merit the high

8
Price. Due to the extremely high price, premium pricing generally is a short-term
Strategy as competitors arc attracted to markets with high-margin items, lhc length of
Time you can charge customers a premium price depends on the sustainability of the
Competitive advantage. A Premium pricing strategy yields the highest product prices of
the strategies available. It is best to use premium pricing when there are no substitutes
for your product. Substantial barriers to enter the market exist and the potential
customers are price Insensitive because they value the benefits provided by the product.
Well, one must Remember that premium pricing cannot be used when there is
competition. Competitors Would undercut the price, leaving one with ineffective pricing
strategy and poor product Sales.

Value Pricing

Price is based on the value of the product. Value priced products are priced a bit lower
than premium products because they face moderate market competition. A value pricing
Strategy is used best when only a few competitors exist, barriers to entering the market
are relatively high and potential customers value the benefits provided by the product. A
business should select a value pricing strategy when its product has a Competitive
advantage that is unsustainable because of the likelihood that competitors Will enter the
market. Value priced products attract many competitors because of the price.

Penetration pricing

Penetration pricing is used when a company launches a product in a market with several
Competitors. Initially, the price for the product is set low to grow product sales und
Increase market share. Doing this attracts new customers more quickly and easily than
Other strategies. Once market share is gained, price is increased. This strategy is
Effective when potential customers arc price sensitive and economics of scale can be
Exploited. Although this strategy might seem to work for small, value-added enterprises,
Few will have the infrastructure and size to operate at economies of scale.

The objective to market penetration is to gain market share. The product needs to be
Priced lower than the market leader to attract customers. ―Penetration‖ involves setting a
Low initial price to enter the market quickly and deeply to attract a large number of
buyers And win a large market share. Several conditions favour setting a low price. The
market Must be highly price sensitive so that a low price produces more market growth.
Production and distribution costs must fall as sales volume increases; the low price

9
Should serve as a barrier to entry for competitors. This pricing Strategy can help
establish brand loyalty and keep new competition out of the market Place. But if the
price is set too low. Customers may take view that the product is of low Quality and
therefore brand image can suffer.

T’ost /Plus pricing

One determines the total costs and adds a margin of profit. Cost/plus pricing is used
when A company has a two-tiered focus; costs and return on sales. Companies
implement Cost/plus pricing when market share and profits are the objectives. To
establish a price Using a cost – plus strategy, the company needs to determine its break-
even price by Calculating all costs involved in the production and distribution of the
product. TheFor products is high in relation to the barriers to entering the market.

What Are Fast-Moving Consumer Goods (FMCG)?

Understanding Fast-Moving Consumer Goods (FMCG)

Consumer goods are products purchased for consumption by the average consumer.
They are divided into three different categories: durable goods, nondurable goods, and
services. Durable goods have a shelf life of three years or more while nondurable goods
have a shelf life of less than one year. Fast-moving consumer goods are the largest
segment of consumer goods. They fall into the nondurable category, as they are
consumed immediately and have a short shelf life.

Nearly everyone in the world uses fast-moving consumer goods (FMCG) every day.
They are the small-scale consumer purchases we make at the produce stand, grocery
store, supermarket, and warehouse outlet. Examples include milk, gum, fruit and
vegetables, toilet paper, soda, beer, and over-the-counter drugs like aspirin.

FMCGs account for more than half of all consumer spending, but they tend to be low-
involvement purchases. Consumers are more likely to show off a durable good such as a
new car or beautifully designed smart phone than a new energy drink they picked up for
$2.50 at the convenience store.

Types of Fast-Moving Consumer Goods

As mentioned above, fast-moving consumer goods are nondurable goods, or goods that
have a short lifespan, and are consumed at a fast pace.

FMCGs can be divided into several different categories, including:

10
Processed foods: Cheese products, cereals, and boxed pasta

Prepared meals: Ready-to-eat meals

Beverages: Bottled water, energy drinks, and juices

Baked goods: Cookies, croissants, and bagels

Fresh foods, frozen foods, and dry goods: Fruits, vegetables, frozen peas and carrots, and
raisins and nuts

Medicines: Aspirin, pain relievers, and other medication that can be purchased without a
prescription

Cleaning products: Baking soda, oven cleaner, and window and glass cleaner

Cosmetics and toiletries: Hair care products, toothpaste, and soap

Office supplies: Pens, pencils, and markers

The Fast-Moving Consumer Goods Industry

Because fast-moving consumer goods have such a high turnover rate, the market is not
only very large, it is also very competitive. Some of the world’s largest companies
compete for market share in this industry including Tyson Foods, Coca-Cola, Unilever,
Procter & Gamble, Nestlé, PepsiCo, and Danone. Companies like these need to focus
their efforts on marketing fast-moving consumer goods to entice and attract consumers
to buy their products.

That’s why packaging is a very important factor in the production process. The logistics
and distribution systems often require secondary and tertiary packaging to maximize
efficiency. The unit pack or primary package is critical for product protection and shelf
life, and also provides information and sales incentives to consumers.

FMCGs are sold in large quantities, so they are considered a reliable source of revenue.
This high volume of sales also offsets the low profit margins on individual sales as well.

As investments, FMCG stocks generally promise low growth but are safe bets with
predictable margins, stable returns, and regular dividends.

Special Considerations

Fast-Moving Consumer Goods and Ecommerce Shoppers across the globe increasingly
purchase things they need online because it offers certain conveniences—from

11
delivering orders right to the door to broad selection and low prices—that brick-and-
mortar stores can’t.

According to a 2018 report by Nielsen, the most popular goods for online purchase are
related to travel, entertainment, or durable goods, such as fashion and electronics.
However, the online market for groceries and other consumable products is growing, as
companies redefine the efficiency of delivery logistics and shorten their delivery times.
While non-consumable categories may continue to lead consumable products in sheer
volume, gains in logistics efficiency have increased the use of ecommerce channels for
acquiring FMCGs.

What Are Consumer Packaged Goods?

Consumer packaged goods are the same as fast-moving consumer goods. They are items
with high turnover rates, low prices, or short shelf lives. Fast-moving consumer goods
are characterized by low profit margins and large sales quantities. Products that fall
within this group include soft drinks, toilet paper, or dairy products, for example.

What Are 3 Types of Consumer Goods?

The three main categories of consumer goods include durable goods, nondurable goods,
and services. Durable goods, such as furniture or cars, last at least three years. Often,
economists will watch durable goods spending to track the health of the economy.
Nondurable goods are items with a shelf life of under one year, and are consumed
rapidly. Fast-moving consumer goods fall within this category. Finally, services include
intangible services or products, such as haircuts or car washes.

What Are Some of the Largest Fast-Moving Consumer Goods Companies?

Nestlé, Procter & Gamble, and Coca-Cola are among the world’s largest fast-moving
consumer goods companies. Swiss-based Nestlé, for instance, operates over 2,000
brands that cover everything from vitamins to frozen foods.

Importantly, within the fast-moving consumer goods industry, the competition for
market share is high. In response, companies focus heavily on packaging not only to
attract customers, but to preserve the shelf life and integrity of the product.

12
 REVIEW OF LITERATURE

AdPhilipkotler’s (1967) – undertook collection of strategic objectives for price points.

Price communicate how to care about brand product and customer to your potential
consumers.

Illustrates the relationship between servetization, pricing strategy , building options,

revenue models and pricing capabilities

Gijsbrechts(1993)-Has developing pricing strategy is crucial and highly complex price

research empasizes its depend on various factors like environment, firm objectives
Customer characteristics and its turn reflect there categories such ach price skimming
and penetration

Cravens (1996)-Noted that firms often face situation in which they need to change
prices. A price decrease may brought about excess plant capacity , declining market
share, desire to dominate market through lower cost and economical recession .A price
increase may brought about by cost inflation over demand.

Stanton (2000)-Pointed out that value result from perceptions of total satisfaction
provided by the product .price of product is associated with value , quality, durability
and performance.

Kotler (2000)-Price is a value attached to a product by consumers at sameikum point of

time. This means what consumers pay for a product or service or exchange of value,
usually money for bundle of satisfaction. Price is an offer uses to enhance the image of a
product and and increase sales through discount pricing or in combination with
promotion to build future sales.

Njau(2001)- Concluded that as a result of globalisation the business environment

changed fast, competition increased due to entrance of new consumer good companies
and we’re forced to develop response strategies in order to cope with changing
environment and Survival .These response strategies include investment in technology,
innovation, new market devlopment, strategic alliances and acquisitions , re-
engineering.

Zaithams and Bitner (2003) explained that companies may seek to maximize profit
through pricing and other objective that may include maximising current revenue ,
maximising sales growth, maximising market share and products leadership .

13
Mukhweso (2003), explained that selecting pricing strategy for FMCGS is a critical
function for manufacturers. Most manufacturers know the minimum price one must
charge to break even and minimum price that can be charged based on an estimate of
customer demand . Cost and demand estimate provide them with amount of price
flexibility available for pricing of products .

Kotler (2004) explained that competition and profit objectives determines the price that
can be charged for a product and most companies subscribe in one main pricing strategy.

Stunlake (1994), explained that a product price has strong effect on sales. For some
products an increase in price may result in increase in revenue. Market price effect the
price of factors of production. Price allocates economic resources for optimum
production , distribution and consumption of goods .Price has social and psychological
effects on consumers. Some products have concealed values and benefits which cannot
be evaluated rationally .In such cases price is an indicator of quality and value for many
customers.

Ministry for Planning and National Development (2003), There are various challenges
faced in FMCGS .Main challenge was increased competition due to globalization and
liberalisation. Other challenges including changing lifestyles of consumers and other
requirements, rising cost of advertising , corporate requirements , ethical concerns and
had economic times , coupled with high prices for products.

Rharath(2004), argues that product superiority plus favourable price value equation will
form basis of winning initiatives in the coming years . Another potential opportunity for
value creation is in the area of distribution and availability. Firms would need to invest
in upgraded store infrastructure in- shop and market level presence and therefore
improve presence and availability.

14
 CHAPTER III

DATA ANALYSIS AND INTERPRETATION

15
 Table 3.1

CLASSIFICATION ON THE BASIS OF TURNOVER OF BUSINESS

S.NO TURNOVER OF NO.OF Percentage

BUSINESS PER RESPONDENTS
YEAR
1 Below 5 lakh 27 60%
2 5 lakh to 10 lakh 9 20%
3 Above 10 lakh 9 20%
Total 45 100%
Source : Primary data

CLASSIFICATION ON THE BASIS OF TURNOVER OF

BUSINESS

20%

20% 60%

Below 5 lakh 5 lakh to 10 lakh Above 10 lakh

Figure 3.1

Interpretation:

From the above table and figure it is clear that majority of the respondents turnover from
business is 60%. Rest of the people whose business turnover is 5 lakh to 10 lakh and
above 10 lakh.

16
 Table 3.2

CLASSIFICATION ON THE BASIS OF NUMBER OF BRANCHES

S.no Branches No of branches Percentage

1 Less than 10 25 56%
2 10/more 20 44%
Total 45 100%

Source : Primary data

CLASSIFICATION ON THE BASIS OF NUMBER OF

BRANCHES

44%

56%

Less than 10 10/more

Figure.3.2

Interpretation:

From the above table majority of respondents says that is 56% have less than 10
branches and about 44% have more than 10.

17
 Table 3.3

CLASSIFICATION ON THE BASIS OF AREA OF BUSINESS OR CATEGORY

OF PRODUCTS

S.no Category of No.of Respondents Percentage

products
1 Packaged food 13 29%
2 Health and wellness 3 7%
products
3 Dress and costumes 1 2%
4 Beverages 6 13%
5 Others specify 22 49%
Total 45 100
Source: Primary data

CLASSIFICATION ON THE BASIS OF AREA OF BUSINESS OR CATEGORY

OF PRODUCTS

29%

49%

7%
2%
13%

Packaged food Health and wellness products Dress and costumes

Beverages Others specify

Figure 3.3

Interpretation:

In above table,49% respondents have other specific business, 29% have the business of
packaged food. 13% are beverages based of the business, 7% are health and wellness
products and only 2% have dress and costume business.

18
 Table No 3.4

CLASSIFICATION OF THE BASIS OF AREA OF OPERATIONS OF BUSINESS

S.No Area Total Percentage

1 Local Area 15 33%
2 Whole district 20 45%
3 Whole state 10 22%
Total 45 100
Source: Primary data

CLASSIFICATION ON THE BASIS OF AREA OF

OPERATIONS OF BUSINESS

22%
33%

45%

Local Area Whole district Whole state22.22%

Figure:3.4

Interpretation:

From the above table it is clear most of the respondents i.e; 45% have their business in
the whole district where as 33% of the people had their business only in local area and
on the other hand 2% have business in the whole state.

19
 Table 3.5

CLASSIFICATION ON THE BASIS OF NUMBER OF EMPLOYESS

S.NO NO OF NO.OF PERCENTAGE

EMPLOYEES RESPONDENTS
1 Below 20 10 22%
2 20-40 15 33%
3 40-60 16 36%
4 Above 60 4 9%
Total 45 100
Source: Primary data

CLASSIFICATION ON THE BASIS OF NUMBER OF

EMPLOYESS

9% 22%

36%

33%

Below 20 20-40 40-60 Above 60

Figure 3.5

Interpretation:

In above table, 36% have 40-60 employees and 9% of people have more than 60
employees. 22% have below 20 employees.

20
 Table 3.6

CLASSIFICATION ON THE BASIS OF DIFFICULTIES FACED WHILE

FIXING PRICES

S.no Response No. of respondents Percentage

1 Inappropriate timing 14 31%
of product
introduction
2 Inadequate market 20 44%
analysis
3 High tax rate 7 16%
4 Innovation of 4 9%
counterfeit products
Total 45 100%
Source:Primary data

CLASSIFICATION ON THE BASIS OF DIFFICULTIES FACED

WHILE FIXING PRICES

9%
16% 31%

44%

Inappropriate timing of product introduction Inadequate market analysis

High tax rate Innovation of counterfeit products

Figure 3.6

Interpretation:

In above table 44% respondents faced inadequate market analysis, 31% faced
inappropriate timing of product introduction. People also faced high tax rate and
innovation of counterfeit products.

21
 Table 3.7

CLASSIFICATION ON THE BASIS OF PROVIDING DISCOUNT

S.no Response No. of Respondents Percentage

1 Yes 30 67%
2 No 15 33%
Total 45 100
Source: Primary Data

CLASSIFICATION ON THE BASIS OF PROVIDING

DISCOUNT

33%

67%

Yes No

Figure 3.7

Interpretation:

In above table, 67% of the respondents provides discount, 33% of the respondents does
not provide discount.

22
 Table 3.8

CLASSIFICATION ON THE BASIS OF MARKET AND DEMAND

S.no Response No. of Respondents Percentage

1 Very large extent 15 33%
2 Large extent 5 11%
3 Some extent 12 27%
4 Small extent 9 20%
5 No extent 4 9%
Total 45 100
Source: Primary Data

CLASSIFICATION ON THE BASIS OF MARKET AND

DEMAND

9%

33%
20%

11%
27%

Very large extent Large extent Some extent Small extent No extent

Figure 3.8

Interpretation:

In the above table 33% respondents are agrees to very large extent, 27% are agrees to
some extent, 20% of respondents are agrees to small extent,11 % are agrees to large
extent and 9% are respondents to no extent.

23
 Table 3.9

CLASSIFICATION ON THE BASIS OF GOVERNMENT POLICIES

S.no Response No. of Respondents Percentage

1 Very large extent 8 18%
2 Large extent 10 22%
3 Some extent 7 14%
4 Small extent 15 33%
5 No extent 6 13%
Total 45 100
Source: Primary Data

CLASSIFICATION ON THE BASIS OF

GOVERNMENT POLICIES
13%
18%

33% 22%

14%

Very extent Large extent Some extent Small extent No extent

Figure 3.9

Interpretation:

In the above table 33% respondents are agrees to small extent, 22% are agrees to large
extent, 18% of respondents are agrees to very extent and 14% are agrees to some extent
and 13% to no extent.

24
 Table 3.10

CLASSIFICATION ON THE BASIS OF COMPANY OBJECTIVES

S.no Response No. of Respondents Percentage

1 Very large extent 13 29%
2 Large extent 10 22%
3 Some extent 15 33%
4 Small extent 2 5%
5 No extent 5 11%
Total 45 100
Source: Primary Data

CLASSIFICATION ON THE BASIS OF COMPANY

OBJECTIVES

11%
5% 29%

33%

22%

Very large extent Large extent Some extent Small extent No extent

Figure 3.10

Interpretation:

In the above table shows that 33% respondents are agrees to some extent, 29% are agrees
to very large extent 22% are agrees to large extent, 11% of respondents are agrees to no
extent,5% are respondents to small extent.

25
 Table 3.11

CLASSIFICATION ON THE BASIS OF PRODUCT QUALITY

S.no Response No. of Respondents Percentage

1 Very large extent 19 42%
2 Large extent 13 29%
3 Some extent 8 18%
4 Small extent 3 6%
5 No extent 2 5%
Total 45 100
Source: Primary Data

CLASSIFICATION ON THE BASIS OF PRODUCT

QUALITY
6% 5%

18% 42%

29%

Very large extent Large extent Some extent Small extent No extent

Figure 3.11

Interpretation:

In the above table 42% respondents are agrees to very large extent, 29% are agrees to
large extent, 18% of respondents are agrees to some extent, 6% are agrees to small
extent and 5% are respondents to no extent.

26
 Table 3.14

CLASSIFICATION ON THE BASIS OF COST OF PRODUCTION

S.no Response No. of Respondents Percentage

1 Very large extent 15 33%
2 Large extent 5 11%
3 Some extent 12 27%
4 Small extent 9 20%
5 No extent 4 9%
Total 45 100
Source: Primary Data

CLASSIFICATION ON THE BASIS OF COST OF

PRODUCTION

9%

33%
20%

11%
27%

Very large extent Large extent Some extent Small extent No extent

Figure 3.14

Interpretation:

In the above table 33% respondents are agrees to very large extent, 27% are agrees to
some extent, 20% of respondents are agrees to small extent, 11% are agrees to large
extent and 9% are respondents to no extent.

27
 Table 3.15

CLASSIFICATION ON THE BASIS OF COMPETITIVE POLICES AND

STRATEGIES

S.no Response No. of Respondents Percentage

1 Very large extent 10 22%
2 Large extent 5 11%
3 Some extent 12 27%
4 Small extent 14 31%
5 No extent 4 9%
Total 45 100
Source: Primary Data

CLASSIFICATION ON THE BASIS OF

COMPETITIVE POLICES AND STRATEGIES

9%
22%

31%
11%

27%

Very large extent Large extent Some extent Small extent No extent

Figure 3.15

Interpretation:

In the above table 31% respondents are agrees to small extent, 27% are agrees to some
extent, 22% of respondents are agrees to very large extent, 11% are agrees to large
extent and 9% are respondents to no extent.

28
 Table 3.16

CLASSIFICATION ON THE BASIS OF CUSTOMER TASTE AND

PREFERENCE

S.no Response No. of Respondents Percentage

1 Very large extent 20 44%
2 Large extent 10 22%
3 Some extent 5 11%
4 Small extent 3 7
5 No extent 7 16%
Total 45 100
Source: Primary Data

CLASSIFICATION ON THE BASIS OF CUSTOMER

TASTE AND PREFERENCE
16%

7% 44%

11%

22%

Very large extent Large extent Some extent Small extent No extent

Figure 3.16

Interpretation:

In the above table 44% respondents are agrees to very large extent, 22 % are agrees to
large extent, 16% of respondents are agrees to no extent, 11% are agrees to some extent
and 7 % are respondents to small extent.

29
 Table 3.17

CLASSIFICATION ON THE BASIS OF ECONOMIC CONDITION SUCH AS

INFLATION AND RECESSION

S.no Response No. of Respondents Percentage

1 Very large extent 10 22%
2 Large extent 15 33%
3 Some extent 12 27%
4 Small extent 5 11%
5 No extent 3 7%
Total 45 100
Source: Primary Data

CLASSIFICATION ON THE BASIS OF ECONOMIC

CONDITION SUCH AS INFLATION AND
RECESSION
7%

11% 22%

27%

33%

Very large extent Large extent Some extent Small extent No extent

Figure 3.17

Interpretation:

In the above table 33% respondents are agrees to large extent, 27% are agrees to some
extent, 22% of respondents are agrees to very large extent,11% are agrees to small
extent and 7% are respondents to no extent.

30
 Table 3.18

CLASSIFICATION ON THE BASIS OF SIZE OF THE PRODUCT

S.no Response No. of Respondents Percentage

1 Very large extent 5 11%
2 Large extent 10 22%
3 Some extent 2 4%
4 Small extent 20 45%
5 No extent 8 18%
Total 45 100
Source: Primary Data

CLASSIFICATION ON THE BASIS OF SIZE OF THE

PRODUCT

11%
18%

22%

4%
45%

Very large extent Large extent Some extent Small extent No extent

Figure 3.18

Interpretation:

In the above table 45% respondents are agrees to small extent, 22% are agrees to large
extent, 18% of respondents are agrees to no extent,11% are agrees to very large extent
and 4% are respondents to some extent.

31
 Table 3.19

CLASSIFICATION ON THE BASIS OF CUSTOMER LOCATION

S.no Response No. of Respondents Percentage

1 Very large extent 10 22%
2 Large extent 17 38%
3 Some extent 5 11%
4 Small extent 7 16%
5 No extent 6 13%
Total 45 100
Source: Primary Data

CLASSIFICATION ON THE BASIS OF CUSTOMER

LOCATION
13% 22%

16%

11%
38%

Very large extent Large extent Some extent Small extent No extent

Figure 3.19

Interpretation:

In the above table 38% respondents are agrees to large extent, 22% are agrees to very
large extent, 16%% of respondents are agrees to small extent,13% are agrees to no
extent and 11% are respondents to some extent.

32
 Table 3.20

CLASSIFICATION ON THE BASIS OF INITIAL LOW PRICE

S.no Response No. of Respondents Percentage

1 Very large extent 5 11%
2 Large extent 10 22%
3 Some extent 20 45%
4 Small extent 8 18%
5 No extent 2 4%
Total 45 100
Source: Primary Data

CLASSIFICATION ON THE BASIS OF INITIAL LOW

PRICE
4% 11%
18%

22%

45%

Very large extent Large extent Some extent Small extent No extent

Figure 3.20

Interpretation:

In the above table 45% respondents are agrees to some extent, 22% are agrees to large
extent, 18% of respondents are agrees to small extent,11% are agrees to very large
extent and 4% are respondents to no extent.

33
 Table 3.21

CLASSIFICATION ON THE BASIS OF INITIAL HIGH PRICE

S.no Response No. of Respondents Percentage

1 Very large extent 20 44%
2 Large extent 10 22%
3 Some extent 5 11%
4 Small extent 3 7%
5 No extent 7 16%
Total 45 100
Source: Primary Data

CLASSIFICATION ON THE BASIS OF INITIAL

HIGH PRICE

16%

7% 44%

11%

22%

Very large extent Large extent Some extent Small extent No extent

Figure 3.21

Interpretation:

In the above table 44% respondents are agrees to very large extent, 22% are agrees to
large extent, 16% of respondents are agrees to no extent,11% are agrees to some extent
and 7% are respondents to small extent.

34
 Table 3.22

CLASSIFICATION ON THE BASIS OF PRICE BASED ON THE QUALITY OF

PRODUCT

S.no Response No. of Respondents Percentage

1 Very large extent 10 22%
2 Large extent 17 38%
3 Some extent 5 11%
4 Small extent 7 16%
5 No extent 6 13%
Total 45 100
Source: Primary Data

CLASSIFICATION ON THE BASIS OF PRICE BASED

ON THE QUALITY OF PRODUCT

13%
22%

Very large extent

Large extent 16%
Some extent
Small extent
No extent
11%
38%

Figure 3.22

Interpretation:

In the above table 38% respondents are agrees to very large extent, 22 % are agrees to
very large extent, 16% of respondents are agrees to small extent, 13 % are agrees to no
extent and 11% are respondents to no extent.

35
 Table 3.23

CLASSIFICATION ON THE BASIS OF PRICE BASED ON CUSTOMER

PERCEPTION

S.no Response No. of Respondents Percentage

1 Very large extent 8 18%
2 Large extent 10 21%
3 Some extent 6 14%
4 Small extent 15 33%
5 No extent 6 14%
Total 45 100
Source: Primary Data

CLASSIFICATION ON THE BASIS OF PRICE BASED ON

CUSTOMER PERCEPTION

14% 18%

33% 21%

14%

Very large extent Large extent Some extent Small extent No extent

Figure 3.23

Interpretation:

In the above table 33% respondents are agrees to small extent, 21% are agrees to large
extent, 18% of respondents are agrees to very large extent, 14% are agrees to both some
extent and no extent.

36
 Table 3.24

CLASSIFICATION ON THE BASIS OF CREDIT SALES

S.no Response No. of Respondents Percentage

1 Very large extent 7 16%
2 Large extent 6 13%
3 Some extent 10 22%
4 Small extent 17 38%
5 No extent 5 11%
Total 45 100
Source: Primary Data

CLASSIFICATION ON THE BASIS OF CREDIT

SALES
11% 16%

13%

38%

22%

Very large extent Large extent Some extent Small extent No extent

Figure 3.24

Interpretation:

In the above table 38% respondents are agrees to small extent, 22% are agrees to some
extent, 16% of respondents are agrees to very large extent,13% are agrees to large
extent and 11% are respondents to no extent.

37
 Table 3.25

CLASSIFICATION ON THE BASIS OF FANCY NUMBERS

S.no Response No. of Respondents Percentage

1 Very large extent 15 33%
2 Large extent 5 11%
3 Some extent 12 27%
4 Small extent 9 20%
5 No extent 4 9%
Total 45 100
Source: Primary Data

CLASSIFICATION ON THE BASIS OF FANCY

NUMBERS

9%

33%
20%

11%
27%

Very large extent Large extent Some extent Small extent No extent

Figure 3.25

Interpretation:

In the above table 33% respondents are agrees to very large extent, 27% are agrees to
some extent, 20% of respondents are agrees to small extent, 11% are agrees to large
extent and 9% are respondents to no extent.

38
 Table 3.26

CLASSIFICATION ON THE BASIS OF ODD NUMBER PRICING

S.no Response No. of Respondents Percentage

1 Very large extent 9 20%
2 Large extent 10 22%
3 Some extent 7 16%
4 Small extent 11 24%
5 No extent 8 18%
Total 45 100
Source: Primary Data

CLASSIFICATION ON THE BASIS OF ODD NUMBER

PRICING

18% 20%

24% 22%

16%

Very large extent Large extent Some extent Small extent No extent

Figure 3.26

Interpretation:

In the above table 24% respondents are agrees to small extent, 22% are agrees to large
extent, 20% of respondents are agrees to very large extent, 18% are agrees to no extent
and 16% are respondents to some extent.

39
 CHAPTER IV

FINDINGS, SUGGESTIONS AND CONCLUSIONS

40
4.1 FINDINGS

 The turnover from FMCG business of the most of the respondents are below 5
lakh rupees.

 According to the study the maximum number of branches that a FMCG

business having is less than 10.

 About 49% of the respondents have other non specified businesses like cottage
industries.

 Most of the FMCG business operations are established within whole district

 Inadequate market analysis is preferred as the major difficulty faced by the

respondents for fixing price

 Most of the FMCG manufacturers allow discount on their sale as part of pricing
strategy

 33% of respondents are agreed to small extent on government policies in choice

of pricing strategies of FMCG manufacturers

 About 33% of respondents agrees with small extent in case of company objective
in choosing pricing strategies

 Initial high price and fancy number are the two methods adopted by
manufacturers at very large extent in the opinion of 44% and 33% respectively.

 Customer perception is chosen by respondent at small extent in choosing their

pricing strategy.

 Quality of product is chosen by respondent at large extent in choosing their

pricing strategy by 29%

 Initial high price is chosen by respondent at very large extent in choosing their
pricing strategy.

 Taste and preference is chosen by respondent at very large extent in choosing

their pricing strategy.

 Cost of production is chosen by respondent by 27% at very large extent in

choosing their pricing strategy

41
 Relatively market and demand is chosen by respondent at very large extent in
choosing their pricing strategy.

 Inflation and recession affects at large extent by 33% while choosing pricing
policy

 45% of respondents agrees that size of product influence in adopting pricing

policy only to a small extent.

 Fixing initially low price for the products considered as a pricing strategy by
45% respondents.

 Credit sales and odd number pricing are considered at a small extent by the
respondents among FMCG manufacturers.

 Location of customers affects pricing policy to a large extent based on distance

from the business spot. 36% of respondents have 40-60 employees for their
business.

42
4.2 SUGGESTIONS AND RECOMMENDATIONS

1.Firms in FMCGS should adopt more diverse pricing strategies such as discounts and
allowances , pricing premium instead of concentrating on just few pricing strategies
based on cost.

2. Adopt more diverse pricing strategy which will help them to cope with unexpected
changes from the marketing environment . For example changes in government policies
or changes in prices of competitors product.

3. It is recommended that the firms should join an association from where they can
negotiate for reasonable taxes from the tax authorities which will help to reduce cost and
thereby to implement effective pricing strategy.

4. Establish effective marketing department to design and manage pricing strategies.

5. Conduct research and studies on competitions in FMCGs before implementing

pricing strategies.

4.3 CONCLUSIONS

The study was important in revealing the extent to which FMCGS have adopted various
pricing strategies . The pricing strategies adopted by manufacturers of FMCGS to a
very large extent include pricing strategy blend very well with product value. Ensure that
the price of product is in line with market price and sell on credit to promote sales. It can
be concluded that manufacturers of FMCGS price products according to product value as
well as according to prevailing market price to remain competitive. They also sell on
credit in order to promote sales and maintain customers. The pricing strategies adopted
by manufacturers of FMCGS to a very large extent include attach importance to
distinctiveness of the company brand in its pricing and add on percentage mark – up on
price in order to remain profitable . In conclusion it can be said that most of the
manufacturers of FMCGS practice mark – up pricing in order to to remain profitable as
well as recover cost.

The study also revealed some challenges experienced by manufacturers of FMCGS in

their pricing strategies. The biggest challenge was stiff competition and high cost
anticipated due to effects of inflation and high cost of production and marketing . Stiff

43
competition remains as a big challenge as most of the firms produce homogeneous
products which are hard to differentiate except to branding .

The aim of any company of FMCG industry should be to satisfy their needs and wants of
there customers with their product offering . Therefore selecting the right product to sell
is essential, as selling the wrong products can result in loss of profit or customer. It is
important for businesses to have a strategy when selecting the correct product to offer as
businesses that historically shows the product strategic focus, perform substantially
better over extended periods of time than business that do not . Marketers should be
aware about the ethics , public policy issues and regulations during the set of new
product strategies .

44
REFERENCE

45
BOOKS

 Al Ries, (2002) ―The 22 Immutable laws of branding in FMCG, IstEdition ,

Harper Publications.

 Dr. O R Krishnaswamy (2006), ―Methodology of Research in Social

Science‖Himalaya Publications

 G C Beri (2012), ―Marketing Research‖ 4 Edition, Tata McGraw Hill Education

Private Limited, New Delhi

JOURNALS

 Prakash M, ―Brand building Strategies in FMCG sector-An empirical study‖, The

Journal of brand management, 5(5),pp 367-377-1998

 Singh, Jyotica (June 2014). "An Overview. FMCG (Fast Moving Consumer
Goods)". International Journal of All Research Education and Scientific Methods
(IJARESM). 2 (6) – via ISSN: 2455-6211.

 Sabnavis, Madan, "FMCG Industry Performance Review and Outlook -

FY18"(PDF). CARE Rating Professional Risk Opinion.

WEBSITE

 "Global Research and Analytics Firm". www.aranca.com. Retrieved 2017-10-

 "FMCG Sector - Steady growth on the cards?". www.indiainfoline.com.

Retrieved 2014-10-1

 https://taylorwells.com.au/fmcg-pricing-strategy/

 https://www.pricebeam.com/consumer-goods-pricing

46
 QUESTIONNAIRE

1. Name of your company.

2. Location.

3. Year of commencement of business.

4. Turnover of business per year.

Below 5 lakh

5 lakh – 10 lakh

Above 10 lakh

5. How many branches or outlets do you have?

Less than 10
10 or more
6. Area of business or category of products.

Packaged food

Health & Wellness products

Dress & Costumes

Beverages

Others , Specify…

7. Area of operation of business.

Local area
Whole district
Whole state

47
 8. How many employees do you have ?
Below 20
20-40
40-60
Above 60
9. Indicate the extent to which the following factors influence the
choice of pricing strategies that you firm uses .
Very Large Some Small No
ISSUE large extent extent extent extent
extent
Market and demand

Government policies

Company objective

Product quality

Cost of production

Competitive policies and

strategies
Customer taste and
preference
Economic condition such
as inflation and recession
Size of the product

Customer location

48
 10. Indicate the extent to which your organization practices the
following pricing strategies.
Very Large Some Small No
STRATEGY large extent extent extent extent
extent
Initial low price

Initial high price

Price based on quality of

product
Price based on customer
perception
Credit sales

Fancy numbers

Odd number pricing

Eg: 199

11.What are the difficulties facing while fixing price for a product ?
Inappropriate timing of product introduction
Inadequate market analysis
High tax rate
Innovation of counterfeit products
12. Are you providing discount ?
Yes No

49
DATA

50
Sl. COMPANY NAME LOCATION COMMENCEMENT
No. YEAR
1 KJ MEATS KELAKAM 2002
2 KMM FISHES KOTTIYOOR 1997
3 HARA VEGETABLES ULIKKAL 2010
4 AYUSH HONEY VAYATHUR 2020
5 AJ FRUITS KANICHAR 2000
6 NM CHEESE PERAVOOR 2007
7 ARAKKANS MEAT IRITTY 2013
8 KAANTH TOOTHPASTE KAKKAYANGAD 2006
9 CLEAN MASKS VILAKKODE 2021
10 NEER WATER IRITTY 2005
11 KOOL SHAKES ULIYIL 2018
12 AMAM JUICE EDOOR 2020
13 DAHAM KEEZHUR 2015
14 PITTANS SHAKES IRITTY 2020
15 CEE YEM JUICE IRITTY 2013
16 SWEET SNACKS MANATHANA 2003
17 KK PAPPADAM KOTTIYOOR 2007
18 FASTA ADAKKATHODE 2005
19 WRITEWELL NOTES ADAKKATHODE 2007
20 FROZEN ICECREAMS PERUMBUNNA 2019
21 TASTY ICECREAMS IRITTY 2005
22 ADAMS CAKES KELAKAM 2017
23 SHEEN BAKES KOTTIYOOR 2006
24 KULFI ICECREAM KOTTIYOOR 2013
25 ORANGE BAKERY KOTTIYOOR 2019
26 MNS FLOUR KELAKAM 1995
27 EK ELECTRONICS PERAVOOR 2000
28 CLEAR FILES KELAKAM 2014
29 PITTANS CAKES IRITTY 2020
30 CAKE PALACE IRITTY 2021
31 MALABAR FOODS KELAKAM 2010
32 QUALITY BAKES IRITTY 2012
33 NAAS SUPERMARKET IRITTY 2018

51
34 AKS VEGETABLES PADIYOOR 2016
35 PATTIAMS BAKERY IRITTY 2020
36 FIROOS COOLBAR KANICHAR 2021
37 APSARA BAKERY IRITTY 2021
38 DIYA SWEETS CHAVASSERY 2020
39 THANIMA DIARY PRODUCTS KOTTIYOOR 2009
40 MAGIC MASALA MANATHANA 2018
41 LEE FURNITURE IRITTY 2017
42 CITY FURNITURE IRITTY 2007
43 SUN PHARMA IRITTY 2015
44 SADHANS COCONUT OIL MUZHAKKUNNU 2013
45 AISWARYA BAKERY IRITTY 2016

52