Economic analysis of molasses (GUR) in Mehrabpur area

The study was comprised of 30 molasses producers including small, medium and large size producers. All the economic parameters were measured in order to examine the economic efficient of small, medium and large scale molasses producers in the study area. The expenditures incurred on capital investment cost on purchase of raw material showed that the small, medium and large size producers purchased sugarcane at the rate of Rs.99.00, Rs.96.00 and Rs.82.50 per 40 kg/mounds, respectively, which averaged Rs.92.50 per 40 kg/mounds, respectively. The total quantity of sugarcane purchased by small size producer was 1755 mounds, medium size producer 2750 mounds and the large scale producer purchased 4045 mounds. The price paid analysis showed that small size molasses producers paid a total price of Rs.171450, medium size producers paid Rs.263800 and the large size producer Rs.333425. The analysis of variable costs showed that all categories of molasses producers paid equal wage rate of Rs.100/labour per day. Small size producer received services of 4.61 days spending amount of Rs.1039.75 as total wages, medium size producer 7.22 days spending Rs.2539.85, while the large size producer hired labour for 10.62 days spending wages costs Rs.5434.82. Material costs indicated that small size molasses producer paid Rs.130.14, medium size producer Rs.203.92 and large size molasses producer paid Rs.299.95 on account of crushing expenses. Analysis of juice obtained showed that small size producer obtained 1053 litres, medium size 1650 litres and large size producer 2427. The corresponding price paid by small, medium, large size producer and overall average was Rs.140.40, Rs.220, Rs.323.60 and Rs.228 on purchase of Gur colour refining chemical (Rangkath), respectively. Similarly, the cost incurred on purchase of mitha soda by small, medium and large size producer was Rs.280.80, Rs.440.00 and Rs.647.20 averaging Rs.456.00, respectively. The small, medium, large size producer and average cost on purchase of mustard oil was Rs.473.00, Rs.770.00, Rs.1188.20 and Rs.810.49, respectively. Small, medium and large size molasses producer obtained 210.60, 330.00 and 485.40 kg molasses, respectively. Similarly, all categories of the molasses producers received equal price of Rs.15 per sack and hence, total price of sacks received by small producer was Rs.78.97, medium size Rs.123.75 and large size producer Rs.182.03. Transport charges analysis showed that small size molasses producer paid Rs.78.97 as transport charges, medium size Rs.123.75 and large size producer Rs.182.03 on account of transport charges averaging Rs.128.25. Input analysis indicated that the total fixed costs were Rs.171450, Rs.263800, Rs.333425 and Rs.256225 by small, medium, large size producers and overall total average costs, respectively. Total variable costs were Rs.2222.03, Rs.4421.27, Rs.8257.81 and Rs.4967.04 of small, medium, large size pro ducers and overall total average, respectively. The above both the major costs accumulated to the total costs of Rs.173672.03, Rs.268221.27, Rs.341682.81 and Rs.261192.04 on the part of small size molasses producer, medium size producer, large size producer and overall total average costs of the producer, respectively. The output analysis indicated that small, medium and large size molasses producer received total income of Rs.203640, Rs.363720 and Rs.619920, respectively averaging Rs.395760 from the business of molasses production. Considering the above figures, net returns of the small, medium and large size molasses producer were 32190, Rs.99920 and Rs.286495, respectively averaging Rs.139535 from the business of molasses production. The cost benefit analysis indicated that small, medium and large size molasses producer had cost benefit ratio of 1:0.85, 1:0.75 and 1:0.55, respectively averaging 1:0.72. This showed that small, medium and large size molasses producer pockete d Re.0.85, Re.0.75 and Re.0.72 on investment of one rupee in the business of molasses production averaging Re. 0.72. On the basis of cost benefit analysis, it was concluded that small size molasses producer had greater average benefits as compared to medium size and large size producers in Mehrabpur area.