aAgri-business Management College, Akurdi, Pune – 411 005, Maharashtra
bDepartment of Agricultural Economics, Post-Graduate Institute, Mahatma Phule Krishi Vidyapeeth, Rahuri – 413 722, Maharashtra
In the present study an attempt has been made to empirically verify which size of oil processing unit is economically viable or can be expanded on a large scale, so that the producers are benefited ultimately. The average total cost of soybean processing has been estimated to be Rs 333/- per quintal, comprising the average total fixed cost of Rs 111/q (33.3%) and the total variable cost of Rs 222/q (66.7%). Among different size groups of processing units, the benefit-cost ratio has been found more or less same for medium (1.13) and large (1.15) sized processing units. The gains due to value addition in soybean have been found as Rs 2083, Rs 4166 and Rs 12502 to small, medium and large farmers, respectively. Therefore, study has suggested that the soybean oil processing units of moderate size can be established on co-operative basis or by public undertaking in the Vidarbha region.
