Economics of jaggery production in north Karnataka

Abstract

India is the world's largest consumer and the second largest producer of sugarcane in the world next to Brazil.About 7.5% of Indian rural population covering about 60 million sugarcane farmers dependent on sugarcane based industriesand many workers are involved in sugarcane processing.Karnataka ranks third in sugarcane cultivation that is concentratedin Belagavi, Bagalkote, Mandya, Bidar, Ballari and Vijayapura districts. The attempted in two districts, viz. Bagalkote andBelagavi districts of North Karnataka. Primary data required for the study was collected from 60 sugarcane farmers for theyear 2018-19 30 from each district. The study revealed that the total capital investment in establishment of jaggeryprocessing in Bagalkote district was estimated to be `3,72,502.67 and the total cost incurred in jaggery production per unitper annum was `47,66,021.89 and the returns realized was `54,61,130 with a net margin of `6,95,108. Similarly, inBelagavi district `4,26,116.97 of establishment cost with total cost incurred in jaggery production was `61,14,604.31 witha net profit of `6,65,301. The investment in production was financially feasible and economically viable in both the districtsas evidenced in results of Pay Back Period which is less than three years, NPV `30,56,344 in Bagalkote and `31,37,414 inBelagavi districts. BC ratio were found to be more than one and internal rate of returns were higher than the opportunitycost of capital with 38.13 per cent and 37.61 per cent in Bagalkote and Belagavi districts respectively