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Journal of Pharmacognosy and Phytochemistry

Journal of Pharmacognosy and Phytochemistry

Vol. 8, Issue 2 (2019)

Economics of small-scale rice mill in Ganjam district of Odisha

Author(s):

Ajit Kumar Panigrahi, Subhashree Mishra and Upasana Mohapatra

Abstract:
Milling is the process wherein the rice grain is transformed into a form suitable for human consumption. Ganjam is a leading district in rice milling operation in the state. There are over 280 mills in the district. The current study was conducted with the objectives to analyze the investment pattern and financial feasibility of small-scale rice milling units and to elicit the problems faced by them. The sample of fifty small-scale mill was selected. Both, primary and secondary data were used for the study. The data were summarized with the help of statistical tools like averages and percentages to obtain meaningful inferences. Investment analysis techniques were carried out to evaluate the feasibility of investment in rice mills. The total initial investment in the mill accounts for Rs 83 lakhs. The total annual returns obtained by the mill accounts for Rs 2,20,30,830.00 of which 78.82 per cent is contributed by sale of rice (Rs 1,73,65,140.00), 6.77 per cent by sale of bran (Rs 14,92,050.00), 6.03 per cent by milling charges (Rs 14,40,000.00) and 5.80 per cent by sale of broken rice (Rs 12,78,900.00). The net present value (NPV) was calculated to be Rs 1,24,64,460.54. The BCR was found out to be 2.50. The IRR turned out to be 28 per cent. the PBP was calculated to be 4 years and 4 months. As NPV is positive, BCR is greater than 1, IRR is greater than the existing rate of interest (7 per cent) and PBP is of less duration, the investment in small-scale rice mill is financially feasible. Invariably all the sample rice mill owners opined that frequent interruption of power supply and high cost of working capital were the major problems faced by them in running the units. Since rice is an important staple crop of the state, it would be advisable for entrepreneurs to invest in small-scale rice milling units to ensure profits for self as well as food security for the state.

Pages: 1579-1582  |  1732 Views  1106 Downloads


Journal of Pharmacognosy and Phytochemistry Journal of Pharmacognosy and Phytochemistry
How to cite this article:
Ajit Kumar Panigrahi, Subhashree Mishra and Upasana Mohapatra. Economics of small-scale rice mill in Ganjam district of Odisha. J Pharmacogn Phytochem 2019;8(2):1579-1582.

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