Economic Analysis of Jaggery Production in Punjab

Published by: Admin

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Authors: Rimaldeep Singh, Jasdev Singh and Sanjay Kumar

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Abstract

The study examined the economic analysis of jaggery production in Punjab. Primary data were collected from two districts Gurdaspur and Hoshiarpur selected through probability proportion to size technique. From these two districts 30 jaggery producers were selected using simple random sampling technique. The study revealed that 66.67 per cent of jaggery producers were cultivator-cum-jaggery producers, primarily operating on small scale with sugarcane as a subsidiary crop, while large, non-cultivator producers treated jaggery as a primary business. The overall benefit-cost ratio (BCR) and the total cost of jaggery production on sample jaggery producing units were 1.48 and Rs 4,574 per quintal respectively. The inverse relationship of estimated BCR as well as cost of jaggery production with size of production unit, indicated presence of significant scale economies in this cottage industry. Inconsistency in jaggery quality, high interest rate on credit and labour shortages were identified as the key challenges faced by jaggery producers. Overall, jaggery production proved profitable but constrained by operational and financial hurdles, particularly for smaller producers.

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