AN EMPIRICAL STUDY ON GUR (JAGGERY) INDUSTRY (WITH SPECIAL REFERENCE TO OPERATIONAL EFFICIENCY & PROFITABILITY MEASUREMENT)
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AN EMPIRICAL STUDY ON GUR (JAGGERY) INDUSTRY
(WITH SPECIAL REFERENCE TO OPERATIONAL EFFICIENCY & PROFITABILITY MEASUREMENT)
ABSTRACT
The paper examines the cost-return analysis, profitability and operational efficiency of Gur manufacturing units in study area. The study revealed that units of medium and large sizes were able to cover their operating expenses with significant level of profit but small size units were earning a marginal profit. The profit earned by this category was very low as compared to other two sizes. The manufacturers are not interested in any new product of Gur, they just want to earn more profit through Gur only. This research will urged the policymakers to streamline strategies that promote stabilization of sugarcane economy and make the nation credible supplier of Gur in the International market, benefiting Gur makers, sugarcane growers and related stakeholders.
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PRESENTATION PLAN
I. Introduction
II. References
III. Research Methodology
IV. Results & Discussion
V. Suggestions
VI. Conclusion
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I-INTRODUCTION
A. Even today, this sector utilizes about 45 to 50 per cent of the total sugarcane grown in the country and provides employment to about 2.5 million people. Uttar-Pradesh is the largest sugarcane producing state in the country and it contributes 44 per cent to the country’s total sugarcane production.
B. As against an average annual rise of 2.5 per cent in world sugar production during the past ten years, global sugar consumption has grown by about 2 per cent per annum, while in India the consumption has been higher at about 3.5 per cent per annum (LKP Research).
C. Nearly 50 per cent of total sugarcane produced in the country is used for manufacture of about 8 million tones Gur which is known as the most nutritious agent among all sweeteners (Madan, 2004)
D. Gur making plants are generally tiny in size, and the machineries of the plants are fabricated by local artisans or engineering workshops. The plants are located in rural areas of sugarcane leading zones of Uttar Pradesh (Cooperative Sugar, 2009)
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II-REFERENCES
1. Jagannadha et al. (2006). Jaggery-A Traditional Indian Sweetener.
2. Madan et al. (2004). Improvement in GUR /Jaggery Making Plant for rural Areas.
3. Baboo & Solomon (1995). Nutritive Sweeteners from Sugar Crops: Development of Jaggery, Khandsari and Syrup Industry in India.
there is no such work has been done on socio-economic & marketing aspect of gur industry either by government or private sector and that is the motivation for this work.
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III-RESEARCH METHODOLOGY
Samples: 30 manufacturing units were selected.
Samples were randomly chosen from 4
clusters and have used for this study.
Clusters: In the district the major 4 clusters are:
Sukrauli, Hata, Kasia and Padarauna.
Location: Kushinagar is border district of Uttar-
Pradesh for Bihar & Nepal.
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Small(N=17)
Medium(N=8)
Large(N=5)
Production Capacity
(Finished Gur in a working day)
Upto 10 (Qtls) 11-25 (Qtls) 26-30 (Qtls)
Crushing Capacity
(In a working day)
75-100 (Qtls) 100-200 (Qtls) 200-240
(Qtls)
Capital Investment
(for establishment of unit)
Rs. 2 -3.5 Lakhs Rs.3.5 – 5.5
Lakhs
Rs.3.5 – 5.5
Lakhs
Types of Production-units
Clusters Sukrouli(N=10)
Kasia(N=08)
Hata(N=06)
Padarauna(N=06)
Overall(N=30)
Crusher Nil 07(23.33)
04(13.33)
05(16.67)
16(53.33)
Plant 10(33.33)
01(3.33)
02(6.67)
01(3.33)
14(46.67)
Cluster wise Gur Producing-units
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OBJECTIVES OF STUDY
Existing problem identification of Gur industry is the goal and objectives of this study, and finding out their appropriate reason will serve as fundamental factor for selecting strategies and investigating the prospects of their applicability. The specific objectives for the study are given below:
1. To explore the existing situation of Gur manufactures in study area and also so see the socio-economic status of gur makers.
2. To examine the Cost and Returns of Gur manufacturing units in study area.
3. To identify the major barriers facing by gur manufacturers of this industry in study area.
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MODELS:
1. Cost and return to the Gur Producing Units:
π = TR-TC
π = (Price X Quantity) - TC
Where:
π =Profit
TR=Total Revenue (Sales)
TC=Total Cost
(Total cost is equal to Sugarcane cost (raw material) + operating cost +fixed cost)
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2. MEASUREMENT OF UNIT PERFORMANCE BY EFFICIENCY:
i. Efficiency ratio:
ER= TR / TC
ii. Profitability ratio:
PR= π / TC
iii. Long run unit cost minimization (LRUCM): (Folayan, 2007)
LRUCM= (ΩL / Ωi) X 100
Where:
ΩL denotes the production units with least production
cost (cost-efficient)
Ωi denotes the production units whose output is being compared. 04/09/23
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IV-RESULTS AND DISCUSSION
1. Socio-Economic Status of Gur manufacturers
2. Cost and return analysis of Gur manufacturing units
3. Measurement of performance of Gur Manufacturing Units
4. Hurdles facing by Gur manufacturers
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Factors SmallN=17
MediumN=8
LargeN=5
OverallN=30
Primary occupationa)Crusherb)Plant
16 (100) Nil
Nil09 (64.3)
Nil5 (35.7)
16 (53. 33)14 (46.67)
Secondary Occupationa)Agricultureb)Business
10 (62.5)07 (50)
04 (25)04 (28.5)
02 (12.5)03 (21.5)
16 (53.33)14 (46.67)
Educationa)Technical degree/ Training Certificateb)Graduationc)Intermediated)High Schoole)Jr. High-Schoolf)Illiterate
Nil
04 (33.33)04 (44.45)06 (100)03 (100)
Nil
Nil
06 (50)02 (22.22)
NilNilNil
Nil
02 (16.67)03 (33.33)
NilNilNil
Nil
12 (40)09 (30)06 (20)03 (10)
Nil
Avg. no. of dependents per household 07 07 06 6.66
Type of housea)Mixb)Pukka
12 (75)05 (35.7)
02 (12.5)06 (42.8)
02 (12.5)03 (21.5)
16 (53.33)14 (46.67)
1. Socio-Economic Status of Gur manufacturers
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Parameters Small(N=17)
Medium(N=8)
Large(N=5)
Overall
Total Cost `25,090.27
55,116.88 69,687.67 42,434.85
Total Revenue `25,941.00 72,625.0
097,300.00 65,288.66
Profit ` (π) 850.7317,508.1
2 27,612.33 22,853.81
Profitability ratio (π /TC) 0.034 0.318 0.396 0.539
Efficiency ratio (TR/TC) 1.034 1.318 1.396 1.539
Summary distribution of Cost and return analysis of Gur manufacturing units
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ScoreSmall
(N=17)Medium(N=8)
Large(N=5) Overall
Min. Efficiency X (100) 67.91% 42.30% 97.11% 42.30%
Max. Efficiency X (100) 100.00% 100.00% 100.00% 100.00%
Median Efficiency X (100) 82.96% 89.14% 98.49% 70.72%
Mean Efficiency X (100) 84.63% 76.18% 98.65% 72.02%
Summary of percentage distribution of operational efficiency of Gur manufacturing
units
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Major hurdles to Gur Industry
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V-SUGGESTIONS
Producing at medium or large size of production is able to generate good profit but small are just able to save their wages. It was found that, if small unit is scale-up upto medium level it could become a profit oriented unit.
There is a need for improving the transport facilities for this industry. It was found that the Gur manufacturers are not in a mindset to form any kind of association of society for the cluster’s development. One regulating authority which can conduct R&D and develop the business behavior among manufacturers is also needed.
There is need for financial assistance and marketing support to small manufacturers, they are not able to expand their business because of tough competition and low profit margin. 04/09/23
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VI-CONCLUSION
The study found that medium and large manufacturing units are more profitable (more than 30 percent) whereas small manufacturers are just able to generate the minimum profit. The inference of this finding is that the manufacturing of Gur has the potential of improving the standard of living in the study area. With the development of this industry such problems like unemployment, low-level of education, could be alleviated. On the macro level this industry could be able to export good quality Gur if research and development facilities could be developed by government.
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