Gopal W Khorne, Rakesh D Ahire and Mahesh U Tanpure
Agriculture and industry have traditionally been viewed as two separate sectors both in terms of their characteristics and their role in economic growth. The agro-processing industries place a huge demand on agricultural raw materials. The primary data was collected by personal interviewing processor. Therefore the attempt was done to estimate per unit cost and returns of processing unit. An attempt, also been done to determine the break-even point of agro processing unit and optimum size of value addition in green gram. In the light of the empirical evidences brought out from the study, the following result are drawn. In almost all size groups of green gram mills, the investment in land constituted the main items of investment followed by machinery and factory building. Per quintal total cost was decrease with increase in size of green gram mills. The net return per quintal for green gram processing was found to be higher in case of large size mills as compared to medium and small mills. Benefit cost ratio was also found to be higher in large sized mills. Benefit cost ratio of agriculture industry is less because of huge initial investment in the processing industry but actual profit is more because of bulk quantity of production. To estimated break – even quantity was increase with the increase in the size of processing mills. Value addition in processing of green gram was higher in large sized followed medium and small green gram mills.
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