An Economic Analysis of Sugar Mills in India-DEA Approach

This paper attempts to assess the performance and efficiency level of sugar mills in India. Data envelopment analysis (DEA) by using Constant returns to scale method has been applied on the input and output data for the period of 2009–2014. This paper revealed that the average technical efficiency of sugar mills in India was 59.50 percent Based on the average technical efficiency score that most of the mills were performing at the optimum level and some of the mills were underutilizing its labor input. The mills located in the southern regions are performing well when compared to the other counter parts of the region. The total factor productivity (TFP) was calculated by using the Malmquist DEA. TFP change could be increased or decreased based on the technical and technological change. Some of the mills got the TFP value of more than unity indicated that productivity gain of the mills.