An economic evaluation of rice processing mills in Jammu district of J&K UT

The study was conducted in Jammu district. We have selected two Rice mills in R.S. Pura belt for our study. The Jammu district was purposively selected as the R. S. Pura area is well known for paddy production. The study was of exploratory nature and convenience method of sampling was used. Both primary as well as secondary data was used. Primary data was collected through a well prepared questionnaire by interviewing the respondents. We have used CACP Cost concept for analysing the data. The results of our study were revealed that the mill-1 & mill-2 involves two types of channels for procuring the paddy viz; commission agents-millers(channel-1) & farmers-millers(channel-2). The total cost involved in rice mills through channel-1 and channel-2 was Rs. 2720.28/ qtl. and Rs. 1926.21/qtl. for mill-1. In case of mill-2, the total cost incurred was Rs. 1963.60/qtl. and Rs. 3894.35/ qtl. for both channel-1 and channel-2 respectively. The gross returns the mills obtained for both channels were Rs. 2902.50/qtl and Rs. 4261.50/qtl for both mill-1 and mill-2 respectively. Thus the net return mill-1 gained was higher in case of channel-2 (Rs. 976.29/qtl.) and for mill-2, net return was higher through channel-1(Rs. 2297.90/ qtl.). Therefore, from the study, we have concluded that for mill-1, channel-2 is more efficient and for mill-2, channel-1 is more beneficial.