EVALUATION OF AYURVEDIC MEDICINE PROCESSING UNITS IN UTTARA KANNADA DISTRICT (KARNATAKA)
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Date
2001-08-09
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UNIVERSITY OF AGRICULTURAL SCIENCES, BANGALORE
Abstract
In the present day context, it can be stated that Ayurveda is very much
alive and is a unique system of medicine widely practiced in Hindustan
penensula. In recent years, it has attended much attention in the
economically developed countries such as (of) Europe, USA and Japan.
The present study was aimed to assess the. performance of Ayurvedic
medicine processing units in Uttara Kannada district (Kamataka). The
objectives were to document the agro-processing units/industries in different
taluks of Uttara Kannada district, to study the investment pattern
organisation structure, cost involved in procurement and processing, cost
and return structure, marketing channels and costs, business performance
and the problems faced by the Ayurvedic medicine processing industry.
Tabular analysis, business ratios and comparative rating method were
employed to analyse the above objective. The fixed capital investment was
high on buildings and land. All the three units taken for the study followed
line organization type of structure. The quantity of raw materials procured by
all the three units was more through pattern II (dealers i.e., 2,255.50 kg,
2,654.50 kg and 4,572.91 kg, respectively). No cost was involved in procuring
the raw materials through pattern I but through pattern II, transport and
handling charges were higher i.e. 63.07 per cent in unit 1 and 66.75 per cent
in unit III. In all the three units. Just in time principle of procurement was
followed. The study on cost involved in processing of Ayurvedic medicines by
all the three units revealed the higher requirement for packing material cost
(85.48 per cent in unit I, 67.33 per cent in unit II and 78.12 per cent in unit
III) followed by wages, utilities and preservatives. The cost of production of
Ayurvedic medicines was high in unit I (Rs.46,801.83) followed by unit III
(Rs.40,736.2) and unit II (Rs.21,296.70), in which the cost of processing per
batch of each product was observed to be high. The profit gained at an
overall level by unit I, unit II and unit III was in the order of Rs.0.76, Rs.0.90
and Rs.0.56 respectively on an every rupee of investment. Unit I marketed
their products only through dealers while unit III marketed through their
hospitals located at different places. Unit II marketed 62.39 per cent through
dealers and 37.61 per cent through its hospital located near the processing
unit. The cost of marketing through dealers was highest due to the high
commission charges (5%) and sales tax paid by the units.
The competition that exists in the market, the tax levied on the raw
materials and finished products and the procurement price incurred by the
units was considered to be the prioritized problems in Ayurvedic medicine
processing industry
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