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Financial appraisal of organic and inorganic jaggery preparation in Bagalkot district - An economic analysis

Sugarcane in India is processed into sugar, jaggery and khandasari and undergoes considerable weight reduction during processing. Jaggery is prepared in almost all parts of the country where sugarcane is grown extensively. Multistage random sampling procedure was followed. The returns from organic jaggery processing per unit worked out to 30, 69,232 with net returns of 6, 33,536. The benefit-cost ratio was estimated at 1.26. The cost and returns in inorganic jaggery preparation per unit per annum in which the total variable cost worked out to 26, 47,512 in which the cost of raw material (sugarcane) was accounted a lion’s share in the total variable cost (79.46 %) and the total cost (78.01 %). The major cost items in the fixed cost was apportioned cost ( 43,887) accounting for 89.29 per cent of the total fixed cost and interest on fixed capital which had small share (5266) accounting for 10.71 per cent to the total fixed cost. The returns from inorganic jaggery processing per unit worked out to 32, 84,661 with net returns of ` 5, 87,992 per unit. The benefit-cost ratio was estimated at 1.22.

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