BUSINESS PERFORMANCE OF RICE MILLS – A STUDY IN EAST GODAVARI DISTRICT, ANDHRA PRADESH
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Date
41586
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Publisher
University of Agricultural Sciences GKVK, Bangalore
Abstract
Rice is one the major food crop product in India. The present study
made an attempt to examine the business performance of rice mills
situated in East Godavari district of Andhra Pradesh. For the study, five
rice mills were purposively selected. The study analysed the investment
pattern, financial performance (2007-08 to 2011-12) and constraints
faced by the sample rice mills. There was a positive percentage change in
the capital invested by three of the sample mills while it was negative for
the remaining two mills. Four of the rice mills exhibited positive
percentage change in owned funds and also recorded an increasing trend
in net profits. The current ratios and quick ratios for three rice mills were
above two and one respectively indicating the healthy liquidity status of
these rice mills. There was an increasing trend in the gross profit ratio of
two mills while it was decreasing trend in the case of remaining mills.
The constraints faced by the rice millers were irregular power supply,
non-availability of adequate labour, scarcity of raw materials and unfair
levy system as 75 per cent of the total production is submitted to
Government as levy. The other constraints faced by the rice millers were
lack of timely transport service, lack of storage facilitates, high
transportation cost, lack of timely service for repair and maintenance of
mill.