Panela Monitor

Document repository

Production and export competitiveness of jaggery in Karnataka

Karnataka is the major sugarcane growing state, with an area of 3.04 lakh hectares and 182.67 lakh tonnes of production. More than 50% of the sugarcane produced is processed into sugar, in recent years the sugar industry is facing problems such as high stocks, financial crunch. This has resulted in delayed and low payments to the farmers. In such a situation, diversion of sugarcane to jaggery making is an alternative option. The study was undertaken in Mandya and Bagalkot district of Karnataka. Data was collected from 60 processors in Mandya and Mahalingapur market hinterland. The total cost of jaggery production per ton in Mandya was Rs.10001.57 of which, the raw material cost accounted for 72.76%. The return from jaggery production per ton was Rs.11125.30 with a net margin of Rs.890.12. Similarly, the total cost of jaggery production per ton in Mahalingapur was Rs. 10257.13 of which, the raw material cost accounted for 73.60%. The return from jaggery production per ton was Rs.11610.00 with a net margin of Rs.1140.52. In all the cases, the B:C ratio is found to be more than one which implies it is profitable to the investment in jaggery processing activities. The trends in the arrivals of jaggery over the years in both Mandya and Mahalingapur markets found to be negative. Similarly, seasonal indices in arrivals were indicated that in Mahalingapur market increased during April and reaches peak during September month (133.36) and fall in arrivals in October to February. In Mandya, the arrivals, increased during July and reaches peak during August month (202.80). Similarly, incase of prices in Mahalingapur, the prices were high from April and reached a peak during the month of October (117.04) and started decreasing. Incase of Mandya, the prices were started increasing from June and reached a peak during the month of October (113.78). The correlation coefficient between arrivals and prices of seasonal indices were found out to be 0.29 and 0.83 in Mahalingapur and Mandya markets respectively. Cyclical variation is arrivals and prices were analyzed. In case of arrivals in Mahalingapur and Mandya market, it can be observed that 2 years and 3 years cycles and for prices it is 5 years and 3 years cycles were observed respectively. The Nominal Protection Coefficient was found to be less than unity (0.57), which implies that jaggery is a good exportable product

Download document (1.1 MB)