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Economics and Efficiency of Sugar Processing by Sugar Factory and Gur Making by the Country Crusher

M. Humayun Kabir
Sugarcane Research & Training Institute, Ishurdi, Pabna, Bangladesh.

Abstract/ Executive Summary:

A study was conducted in the mills and millzones of North Bengal, Rajshahi and Kushtia Sugar mills during 1981-82. The juice recovery by weight was 55.41% in the country crushers and 70.99% in the Sugar Mills. Sugar loss in bagasse % cane was 105.59% higher in the country crushers than the Sugar M ills. This work indicated a high net profit (Tk. 3994.01) obtained from each m. ton of sugar produced by the Sugar Mills (if sold as free sale) compared to net loss of Tk. 1.289.88 in the owner operated country crusher and Tk.1799.36 in the rented country crusher from each m. ton of gur manufactured.

Keywords: Economics and efficiency, Sugar processing, Sugar factory, Gur, Country crusher

Location: North Bengal, Kushtia and Rajshahi Sugar mills

Start Date:

End Date:

Program Area: Socio-economic and Policy

Non-commodity: Efficiency

Objectives:

To estimate the cost of sugar production by the sugar Mills,
To estimate the cost of gur production by country crushers,
To estimate and to compare juice extraction efficiencies by sugar factories and country crushers.

Methodology:

Three Sugar Mills (North Bengal, Kushtia and Rajshahi Sugar mills) and twenty nine country crushers were selected from the concentrated gur production areas. Ten country crushers of the North Bengal Sugar Mills Zone under P. S. Lalpur and Boraigram, nine crushers from Rajshahi Sugar Mills Zone under P. S. Putia in the district of Rajshahi and ten country crushers from Kushtia Sugar Mills Zone under P. S. Kushtia and Mirpur in the district of Kushtia were selected. In twenty nine country crushers, fifteen were owner operated end the rest were rented by the growers. The bagasse, juice extraction and juice analyses of three Sugar Mills and twenty nine country crushers were done separately for deter- mining and comparing their efficiencies. For working out the economics of sugar processing, various cost components were collected from sugar mills records. The similar data for gur processing were collected from country crushers. All these data were grouped into fixed and variable costs. Collected from country crushers. For country crushers the interest on capital was calculated and the original price of the items was obtained from the growers to estimate their "seasonal depreciation" according to the actual durability of the items in years. This seasonal depreciation and interest on capital were added to account the fixed capital costs and the variable inputs included the labour (human and bullock), cane and fuel costs. Marketing costs like transport of gur was included in cost components. In rented crushers, rent of crushers were included in cost components instead of depreciation cost of country crushers, tools and equipment. Fixed capital input in the sugar mills consists of depreciation on building & machineries, permanent salary & wages, other factory overheads, taxes, interest payable, vehicle repair and maintenance, printing and stationery, insurance, head office overheads, levy for sugarcane research. Variable inputs included cane cost, wages to seasonal labourers, rail and road freight on cane, loading and unloading of cane, mechanized cultivation, maintenance of cane hauling vehicles, other raw materials, chemicals & packing, incidental costs etc. Duties and taxes were paid directly to the Government and it was also calculated as a cost component. Data on the juice extraction efficiencies of twenty nine country crushers and three sugar mills were assessed by crushing cane and measuring total juice extracted, analysing sugar loss in bagasse percent cane and lost undiluted juice percent fibre. The analyses were done at sugar mills and the parameters were calculated according to the following formulae (Anon.,1970).

Source of Information: Bangladesh J. Sugarcane, 4: 87-92 July, 1982

Article Link (Online Journal):

Funding Source:

Total Budget (Tk.) :

Achievement/Findings:

The work suggests that though sugar manufacturing is much costlier than gur, the former is profitable and the latter is a losing concern. Results also showed 105.59% higher sugar loss in the bagasse % cane of the country crushers than in the Sugar Mills. Sugar loss in bagasse % cane was 1.43% in the Sugar Mills and 2.94% in the county crushers. The difference between the parameters of county crusher and sugar mills of sugar loss in bagasse % cane was 1.51%. Hence the gur making process by the country crusher, even though gives some temporary cash relief to the growers, is a great national loss.

Knowledge Management: Journal