Estimation of Economic Efficiency of Sugar Industry in Uttar Pradesh: A Frontier Production Function Approach (original) (raw)
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Sugar Industry in Uttar Pradesh: Efficiency Still Holds the Key
2007
The sugar industry is a major agro-based industry of Uttar Pradesh where cropping pattern is largely subsistence-oriented and sugarcane is one of the important cash crops. During 2001-02, the state had 20.35 lakh ha area under sugarcane out of the total 44.03 lakh ha area under sugarcane in the country. The sugar industry has shown considerable instability in the level of production as a result of inter-dependence and inter-relationship between sugarcane, gur, khandsari and white sugar, leading to fluctuations in the production of sugarcane as well as sugar. These fluctuations emanate from the presence of various processing sectors and the differential governmental policies. Such an uncertain state of affairs is neither conducive to sound growth of the industry nor the growers. In view of this scenario, it was felt necessary to carry out an investigation, which can reveal the present status of sugar industry in terms of its efficiency in operations. The study has revealed that most ...
Bhartiya Krishi Anusandhan Patrika, Volume 39 Issue 3-4 (September-December 2024) : 262-268, 2024
Background: This paper aims to evaluate the agricultural production of sugarcane in major sugarcane-producing states of India. Even though agriculture’s share of India’s GDP is decreasing, it still plays a significant role in the labor force by accounting for a sizable number of jobs. Recognizing the importance of sugarcane farming and the variations in resource availability among the states is crucial. The study highlights the importance of enhancing production management and resource allocation to increase sugarcane production and optimize inputs. Methods: The present research employs sophisticated statistical techniques, including Data Envelopment Analysis (DEA) and the Malmquist Productivity Index (MPI), to investigate the influence of variables such as land area and labor utilization on the efficacy of sugarcane cultivation at the state level spanning from 2017 to 2022. It uses DEA to analyze the connection between various agricultural inputs and the efficiency of food grain production and provides recommendations for improved resource allocation among Indian states. Result: The results of the investigation indicate that the mean efficiency of sugarcane cultivation across India is approximately 84.2%. Notably, states such as Uttar Pradesh, Tamil Nadu and Karnataka have demonstrated the highest levels of efficiency in terms of input utilization in sugarcane farming. Conversely, Bihar and Uttarakhand have emerged as the least efficient states in this regard. Furthermore, an analysis using the Malmquist productivity index indicates that Uttar Pradesh has exhibited the most significant average productivity growth, with Maharashtra and Gujarat following closely behind. Conversely, states such as Andhra Pradesh, Punjab, Haryana and Tamil Nadu have demonstrated only marginal enhancements in productivity. The study’s insights on sustainable sugarcane production and enhanced farmer-level regulatory frameworks have the potential to greatly benefit sugarcane-producing states. By implementing these ideas, we can work towards boosting revenue and reducing poverty in rural areas.
Problems and Prospects of Sugar Industry in India: Case Study of Bijnor District; Uttar Pradesh
International Journal of Social Sciences and Management
The sugar industry is the most vital industry in India as well as in Uttar Pradesh. Its importance in the state can also be known from the fact that Uttar Pradesh is called the sugar bowl of India. The processing of sugar production is done by co-operative sugar mills and private sugar mills and both the mills are equally important for the bright future of the sugar industry in Uttar Pradesh. In this study, we have attempted to compare and contrast private and cooperative sugar mills. For this, we selected the largest sugarcane-producing area in western Uttar Pradesh, the Bijnor district. This paper is based on both primary data collection and secondary data collection. Primary data was collected through field survey which was undertaken to Dhampur Chini Mill, a privately owned mill with the maximum capacity for crushing sugarcane, and Snehroad Najibabad Mill, a cooperative sugar mill with the lowest capacity. Comparing both the mills it was found that private mill Dhampur is superi...
An Economic Analysis of Sugarcane Farm Efficiency
International journal of current microbiology and applied sciences, 2021
India is the second largest sugarcane producers in the world, producing around 340-350 million tones of sugarcane per annum on 4.2 million ha area with a yield of 66.1 t/ha. Uttar Pradesh being one of the largest sugarcane producer has Sant Kabeer Nagar district of Basti region has an optimum fraction in sugarcane generated economy. Therefore, the district was selected for the study. Ashrafpur, Debri, Malhepur, Vishunpura and Hakimpur villages were selected randomly from Haisar block. A total of 100 Sugarcane growers were selected randomly for this study. Efficiency of the land in terms of productivity was highest for marginal farmers i.e. 138.31 per cent, Productive man work units (PMWU) was calculated and found highest for medium farms i.e. 7523.71, and the Crop acreage per man was found highest for medium farmers i.e. 57.88 ha/yr.
PERFORMANCE OF AGRO BASED INDUSTRIESIN INDIA WITH SPECIAL REFERENCE TO SUGAR INDUSTRY
The Indian sugar industry is a key driver of rural development, supporting India's economic growth. The industry is inherently inclusive, supporting over 50 million farmers and their families, along with workers and entrepreneurs of almost 550 sugar mills, apart from a host of wholesalers and distributors spread across the country. The Indian sugar industry is cyclical as, on the one hand it serves the domestic market, the largest in the world. Sugar is a sector of significant importance to the national economy. It has done so by commercially utilizing the rural resources to meet the great domestic demand for sugar and by generating surplus energy to meet the increasing energy needs of India. In addition to this, the industry has become the mainstay of the alcohol industry. The sugar sector also has a significant standing in the global sugar space. The Indian domestic sugar market is one of the largest markets in the world in terms of volume. India is also the Second largest sugar-producing nation and remains a key growth driver for world Sugar growing above the Asian and world consumption growth average.
11.Reviewing Performance of Indian Sugar Industry An Economic Analysis
This paper attempts to measure the economic performance of Indian sugar industry in terms of capacity utilization measured econometrically at aggregate level over a period from 1979-80 to 2008-09. In this study, Optimal output is defined as the minimum point on the firm's short run average total cost curve and the rate of capacity utilization is merely ratio of its actual output to capacity output level. Under Choice theoretic framework, the results suggest that a significant variation in the capacity utilization rates over years within same industry was found. There has been diminishing capacity utilization growth rate in this industry during post reform period. The impact of liberalization on economic capacity utilization of Indian sugar industry is noticed to have significant negative impact.
Indian Journal of Economics and Development, 2018
Objectives: To find out the growth, as well as instability in area, production and productivity of sugarcane farming and to assess the resource use efficiency in major sugarcane growing states of India and trade performance of sugar. Methods/Statistical analysis: Investigation is based on secondary data of area, production and productivity of sugarcane in major sugarcane growing states of India for the period from 2000-01 to 2015-16. Efficiency of sugarcane production was estimated using plot level data obtained from website of Cost of Cultivation Scheme, Directorate of Economics and Statistics, Ministry of Agriculture and Farmers Welfare, Government of India for the year, 2014-15. Compound growth rates, instability indices using formula suggested by Cuddy-Della Valle, and resource use efficiency using Data Envelopment approach (DEA) were computed. Findings: At national level area, production and productivity of sugarcane went up during the period of investigation. Similar result was also observed in case of growth rates of sugarcane crop which were found positive and encouraging. The area under sugarcane was found stable in the states like Uttar Pradesh, Uttrakhand and Gujarat on the other hand the yield of sugarcane recorded almost stable in Uttar Pradesh, Uttrakhand and Tamil Nadu. Technical efficiency at national level in sugarcane production was found to be 66% which indicated that the production of crop may further be raised by 34% with the available technology. Allocative mean efficiencies indicated that costs may be reduced by 40% through using optimum combination of inputs keeping in mind their prices while selecting their quantities. The cost efficiency (CE) asserted that farmers may potentially reduce their overall cost of sugarcane production, upto 60% to harvest the existing level of output at least cost. Undoubtedly, the export of sugar from India has increased during the period of investigation. Applications/Improvements: State government initiatives were found appreciable making sugarcane cultivation more remunerative. Proper use of scarce resources may make it more productive and profitable and realizing the objective of doubling income and uplifting standard of cultivators.
Assessment of Performance of Sugar Industry in India with Special Reference to Maharashtra State
2016
This paper discusses about the present performance of Sugar Industry in India as well as Maharashtra, government's role in sugar industry and the basis on which the performance of sugar industry is assessed. Also discussion on the sugar industry assessment which includes discussion on vagaries of monsoon, regulatory risks, operational & market position, financial position and uncertainties may help management of the sugar factories to improve their performance. To perform well, remain competitive and develop rural areas, Indian sugar industry should bring in corporate management. This paper may certainly provide guidelines to the Management, Government, share holders, creditors and employees to take decisions related to their own sphere of interest.
Reviewing Performance of Indian Sugar Industry An Economic Analysis
This paper attempts to measure the economic performance of Indian sugar industry in terms of capacity utilization measured econometrically at aggregate level over a period from 1979-80 to 2008-09. In this study, Optimal output is defined as the minimum point on the firm's short run average total cost curve and the rate of capacity utilization is merely ratio of its actual output to capacity output level. Under Choice theoretic framework, the results suggest that a significant variation in the capacity utilization rates over years within same industry was found. There has been diminishing capacity utilization growth rate in this industry during post reform period. The impact of liberalization on economic capacity utilization of Indian sugar industry is noticed to have significant negative impact.