Operational Efficiency and Profitability Measurement of Indian Gur (Jaggery) Manufacturers

Abstract

Gur (jaggery) is a natural, traditional product of sugarcane. Kushinagar1 district of Uttar Pradesh has a large number of gur manufacturing units, mostly located in the rural areas and manufacturers are following conventional methods for producing this, although, there is no R&D assistance or marketing institutions for support. It is found that the manufacturers are producing mainly for distilleries and local liquor producers, not for the food plate or common man’s consumption. The paper examines the cost-return analysis, profitability and operational efficiency of gur manufacturing units in the study area. The study revealed that units of medium and large sizes were able to cover their operating expenses with a significant level of profit but small size units were earning a marginal profit. The profit earned by this category was very low as compared to the other two sizes. This research will urged the policy-makers to streamline strategies that promote stabilisation of sugarcane economy.