An Empirical Study on Gur (Jaggery) Industry (With Special Reference to Operational Efficiency & Profitability Measurement)

Indian Institute of Management Working Paper No. 2010-12-03

19 Pages Posted: 14 Mar 2011

See all articles by Amit Kumar Dwivedi

Amit Kumar Dwivedi

Entrepreneurship Development Institute of India (EDI); Indian Institute of Management (IIM-A), Ahmedabad

Date Written: December 29, 2010

Abstract

Gur (Jaggery) is a natural, traditional product of sugarcane. It can define as a honey brown coloured raw lump of sugar. Kushinagar has large number of Gur manufacturing units, mostly located in the rural areas and the manufacturers are following conventional methods for producing this. In the district the major clusters which are having more numbers of manufacturing units are Sukraouli, Kasia, Hata and Padarauna. Around half of the rural population is employed in gur making industry in this region. Although, there is no R & D assistance and marketing institutions for support. It is found that the manufacturers are producing majorly for distilleries and local licker producers, not for the foodplate or common man’s consumption. 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.

Keywords: Gur industry, Cost-return analysis, efficiency measurement, profitability ratio, operational efficiency

JEL Classification: Q16, H21, C42, D61

Suggested Citation

Dwivedi, Amit Kumar, An Empirical Study on Gur (Jaggery) Industry (With Special Reference to Operational Efficiency & Profitability Measurement) (December 29, 2010). Indian Institute of Management Working Paper No. 2010-12-03. Available at SSRN: https://ssrn.com/abstract=1783403 or http://dx.doi.org/10.2139/ssrn.1783403

Amit Kumar Dwivedi (Contact Author)

Entrepreneurship Development Institute of India (EDI) ( email )

Ahmedabad
India
+91-9725525219 (Phone)

HOME PAGE: http://www.ediindia.org

Indian Institute of Management (IIM-A), Ahmedabad ( email )

Vastrapur
Ahmedabad, Gujarat 380 015
India
9725525219 (Phone)

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