Business Performance of Rice Mills in Gangavathi area of Karnataka – A Comparative Analysis
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Date
2023-05-26
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University of Agricultural Sciences, Bangalore
Abstract
Rice is the staple and extensively cultivated food crop in world. Gangavathi being one major producer of paddy and being “rice bowl of Karnataka”. Rice is obtained by milling paddy hence it was necessary to view financial status rice mills in that area. Thus, present study undertaken for financial assessment for different size categories of mills (10 sample), costs and returns of paddy processing units (30 samples) and efficiency of marketing channels of processed paddy in the Tungabhadra command area of Karnataka. The findings show that, net income of small, medium and large were Rs.6 crores, Rs.15 crores and Rs.46 crores respectively. B:C for small medium and large found to be 1.41, 1.71 and 1.92 respectively. economics of scale has favoured for large mills 116/quantal whilst for small Rs.416/ quantal. In cases of small, medium and large mills solvency condition was observed to be sound in the current ratio of 8.66, 4.97 and 4.01 respectively. In case of Net worth for small, medium and large it was found 66.83 lakhs, -70.31 lakhs and 124 lakhs economics of scale favouring large mills. Price spread was highest in channel III (Rs. 965) and lowest in channel III (Rs. 225). The marketing efficiency was highest in for marketing channel IV (16.4) and lowest for channel I (8.07) with large number of intermediates.