Management assessment of the oilseed growers cooperative project (OGCP) : final report

External evaluation covers the period through 9/85 and is based on site visits and interviews. The development potential of the project concept is enormous. The project has been able to stabilize oil prices and pass on a greater share of consumer rupee to oilseed growers and has the opportunity to capture a 10% share of the domestic vegetable oil market. Success can be attributed to factors including: (1) a sound strategy of vertical integration from oilseed production to final product sales; (2) the effective management and technical resources of the Oilseeds-Vegetable Oil Wing of the National Dairy Development Board; (3) creditable TA from CLUSA; and (4) a carefully selected, properly trained, and committed staff for cooperative formation and extension. As a result, farmer confidence in the project is high, to the point of prompting expansion of production area and processing capacity. Procurement has progressed steadily and is expected to lead processing capacity until 1990. Existing processing plants are being upgraded and expanded and new facilities constructed; utilization should be at least 80% in the long term and near 100% in the short term, except in drought areas. Also, quality storage facilities are being built at remote village sites to minimize postharvest losses. Efforts to produce quality oils and employ innovative packaging and marketing techniques should yield high results given the relatively poor local standards. The project also has the potential to develop groundnut and soy meal products. Although good progress has been made in seed production, problems with seed quality and quantity and the availability of farm implements continue to constrain agricultural production. The project has also suffered from counterproductive policies at state (i.e., limiting oilseed procurement to member farmers) and national (oil pricing and import policy are the project's most significant vulnerability) levels. Project self-sufficiency can be achieved by the end of 1989 if the P.L. 480 Title II vegetable oil commitment is increased to 267,573 MT. Project expansion to include larger production areas in participating states, the formation of a cooperative federation in a new state, and provision of additional processing capacity is strategically sound; an additional 27,677 MT of oil would be required.