Economic analysis of oilseed processing units in Nagpur district

Abstract

The present study was undertaken in Nagpur District where the list of oilseed processing units operating in Nagpur were obtained from District Industry Centre, Nagpur. The research was conducted in Nagpur, focusing on 7 linseed processing units. Data for the year 2022-23 were collected through a specially designed schedule via personal interviews with unit operators. The analysis revealed that the actual processing capacities utilized were 82.40 percent for small, 89.18 percent for medium, and 87.87 percent for large units. Fixed capital investments varied, with small, medium, and large units investing Rs. 799,543.33, Rs. 1,253,000.00, and Rs. 1,836,000.00, respectively. Land and building costs constituted the major portion of the capital investment. Oilseed processing resulted in the production of oil and oilseed cake, with linseed oil recovery rates at 33.90 percent, 34.00 percent, and 34.00 percent for small, medium, and large units, respectively. Groundnut oil recovery rates were 40.00 percent, 44.06 percent, and 39.90 percent across the same unit sizes. The average fixed costs were Rs. 103,047.30 for small, Rs. 180,270.50 for medium, and Rs. 259,797.50 for large units. Variable costs for linseed and groundnut processing varied, with raw materials being the major expense. Break-even points for linseed processing were 4,474.48 kg for small, 7,841.25 kg for medium, and 10,744.31 kg for large units. For groundnut, break-even points were 1,987.41 kg, 3,502.42 kg, and 5,118.15 kg, respectively. Benefit cost ratio was good for all the units.