Production and export competitiveness of jaggery in Karnataka
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Date
2009
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UAS, Dharwad
Abstract
Karnataka is the major sugarcane growing state, with an area of 3.04 lakh hectares
and 182.67 lakh tonnes of production. More than 50% of the sugarcane produced is processed
into sugar, in recent years the sugar industry is facing problems such as high stocks, financial
crunch. This has resulted in delayed and low payments to the farmers. In such a situation,
diversion of sugarcane to jaggery making is an alternative option. The study was undertaken
in Mandya and Bagalkot district of Karnataka. Data was collected from 60 processors in
Mandya and Mahalingapur market hinterland. The total cost of jaggery production per ton in
Mandya was Rs.10001.57 of which, the raw material cost accounted for 72.76%. The return
from jaggery production per ton was Rs.11125.30 with a net margin of Rs.890.12. Similarly,
the total cost of jaggery production per ton in Mahalingapur was Rs. 10257.13 of which, the
raw material cost accounted for 73.60%. The return from jaggery production per ton was
Rs.11610.00 with a net margin of Rs.1140.52. In all the cases, the B:C ratio is found to be
more than one which implies it is profitable to the investment in jaggery processing activities.
The trends in the arrivals of jaggery over the years in both Mandya and Mahalingapur
markets found to be negative. Similarly, seasonal indices in arrivals were indicated that in
Mahalingapur market increased during April and reaches peak during September month
(133.36) and fall in arrivals in October to February. In Mandya, the arrivals, increased during
July and reaches peak during August month (202.80). Similarly, incase of prices in
Mahalingapur, the prices were high from April and reached a peak during the month of
October (117.04) and started decreasing. Incase of Mandya, the prices were started increasing
from June and reached a peak during the month of October (113.78). The correlation
coefficient between arrivals and prices of seasonal indices were found out to be 0.29 and 0.83
in Mahalingapur and Mandya markets respectively. Cyclical variation is arrivals and prices
were analyzed. In case of arrivals in Mahalingapur and Mandya market, it can be observed
that 2 years and 3 years cycles and for prices it is 5 years and 3 years cycles were observed
respectively. The Nominal Protection Coefficient was found to be less than unity (0.57),
which implies that jaggery is a good exportable product.