The Journal of Research ANGRAU

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AN ECONOMIC ANALYSIS OF VALUE ADDITION TO COTTON The processing of one quintal of kapas resulted in 33 kg of lint, 65 kg of seed and 2 kg of waste. The gross returns obtained from ginning one quintal of kapas were Rs. 4970.41 of which the returns from main product (lint) were Rs. 3978.81 and that from byproduct (seed) were Rs. 991.6. Cost of raw material (kapas) was Rs. 4238 with a value addition to the product in the process being Rs. 732.41 and cost of processing accounting Rs. 392.87. The net value added as a result of processing of kapas to lint was Rs. 339.54 per quintal of kapas processed. The benefit cost ratio worked out to 0.86 in kapas processing. Similar results were observed with Mundinamani (2000) and Dodamani (2007). Among all the costs incurred in marketing of ginned cotton, the maximum cost was incurred on packing material Rs.30.36 per quintal, accounting for 37.47 per cent of the total cost of marketing. As the packing material was very important in case of lint marketing, it constituted the maximum percent. This was followed by sales tax, miscellaneous costs and selling expenditure, which accounted for 25.02 per cent, 20.33 per cent and 17.18 per cent of the total cost of marketing of one quintal lint, respectively. These results are on par with the results of Shivakumar et al. (2001). The average total cost incurred in the processing of lint to yarn was Rs.17201.64 per quintal, of which the total variable cost was Rs.15497.16 forming the major component (90.09%) of the total cost of processing of lint. The total fixed cost being Rs.1704.48 per quintal accounted for 9.91 per cent of the total cost of processing. Of the variable cost the cost of raw material (Rs.12000/quintal) accounted for 69.76 per cent followed by electricity charges (9.82%) and interest rate on working capital (5.72%). The cost on wages to casual labour, repair and maintenance, office maintenance, telephone charges together accounted for 4.76 per cent of the total cost of processing. In the total fixed cost (Rs.1704.48), depreciation amounts Rs.1427.06 (8.27%), which was found to be major component. This was followed by salary to permanent staff i.e., Rs.176.9 (1.02%) and interest on fixed capital, insurance, taxes, license fee, together accounting 0.58 per cent of the total cost of lint to yarn. These results are in line with Mundinamani (2000) and Shivakumar et.al (2001). The processing of one quintal of lint on an average yielded 73 kg of yarn and 27 kg of waste material. The gross returns obtained from processing (spinning) of one quintal of lint were Rs.20435, which comprised of mainly returns from yarn (Rs.18250) and wastage (Rs.2185). The value addition in the process was Rs.8435. The net value added as a result of processing of lint to yarn was Rs.5933.36 per quintal of lint processed. The resultant benefit-cost ratio was 1.62. Table 2. Returns in processing of lint to yarn (for one quintal of lint spinned) S.No Particulars Amount (Rs) 1 Returns from main product(yarn) 18250 2 Returns from wastage 2185 3 Gross returns 20435 4 Raw material cost (kapas) 12000 5 Value addition 8435 6 Processing cost 5201.64 7 Net value addition 5933.36 8 Benefit-cost ratio 1.62 Among all the costs incurred in marketing of spinned cotton, the maximum cost was incurred on packing material, Rs.275.48 per quintal, accounting for 47.9 per cent of the total cost of marketing. This was followed by commission charges Rs.246.45 (42.85%) and export expenses, yarn sale expenses, yarn freight together accounting for 9.22 per cent of the total cost of marketing of one quintal yarn. These results are in line with the results of Shivakumar et al. (2001). 130
RADHIKA et al Thus, the results of analysis indicated that an additional value to the extent of Rs.2297.54 was created in the course of processing cotton kapas in to yarn. The breakup of the same at different levels of processing i.e., at ginning was Rs.339.54 (14.78%) and spinning Rs.1958 (85.22%). Table 3. Total net value addition to one quintal of cotton by processing S.No Stage of processing Net value addition (Rs) Per cent 1 Ginning 339.54 14.78 2 Spinning 1958 85.22 Total net value addition to cotton 2297.54 100 REFERENCES Dodamani, M.T and Kunnal L.B. 2007. Value addition to organically produced naturally- coloured cotton under contract farming. Agricultural Economics Research Review. 20:521-528. Mundinamani, R.M. 2000. An economic analysis of value addition to Cotton in Gadag district. M.Sc. (Ag) Thesis submitted to University of Agricultural Sciences, Dharwad. Shivakumar, S., Sonnad, J.S and Basavaraj, H. 2001. Economics of cotton ginning and pressing in Bellary District. Agricultural marketing. 43(4): 9-12. 131
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CONTENTS PART I : PLANT SCIENCE Eff
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J.Res. ANGRAU 41(1) 1-4, 2013 EFFEC
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EFFECT OF FOLIAR APPLICATION OF NPK
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J.Res. ANGRAU 41(1) 5-13, 2013 NUTR
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NUTRIENT UPTAKE BY RICE CROP UNDER
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LAKSHMI et al Fig 1. Changes in C/N
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LAKSHMI et al Changes in C/N ratio
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LAKSHMI et al Table 3. Changes in h
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J.Res. ANGRAU 41(1) 20-29, 2013 INF
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PRASAD and PRASADINI of bulk densit
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PRASAD and PRASADINI to as high as
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PRASAD and PRASADINI Table 4 . Infl
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PRASAD and PRASADINI Table 8. Influ
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J.Res. ANGRAU 41(1) 30-38, 2013 GEN
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VEMANNA et al The range in mean val
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VEMANNA et al grain yield per plant
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VEMANNA et al 41
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VEMANNA et al Singh, S. P and Khan,
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RAMANA et al RESULTS AND DISCUSSION
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J.Res. ANGRAU 41(1) 42-46, 2013 A S
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RAJANNA et. al. Table 2. Reasons fo
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RAJANNA et al the present findings
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NARASIMHA et al Table 1. Proximate
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NARASIMHA et al Maynard, L., Lossli
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RAMANA et al with small follicles m
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RAMANA et al Characteristics of fol
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Research Notes J.Res. ANGRAU 41(1)
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KIRTHY et al Akhtar et al., 2008; S
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KIRTHY et al El Gharras H. 2009. Po
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SANDYARANI et al Weed parameters li
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SANDYARANI et al Table 2. Influence
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KUMAR et al Table 2. Effect of seed
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DEEPAK et al Table 2 Price spread a
Page 79 and 80: Research Notes J.Res. ANGRAU 41(1)
Page 81 and 82: YAMINI et al Table 3. Estimates of
Page 83 and 84: YAMINI et al coupled with high per
Page 85 and 86: LOKESH et al Table 1. Clustering pa
Page 87 and 88: LOKESH et al Table 4. Mean values o
Page 89 and 90: ABIRAMI et al Socio-economic Impact
Page 91 and 92: ABIRAMI et al socio-economic impact
Page 95 and 96: VEMANNA et al Table 1. Discriminant
Page 97 and 98: VEMANNA et al total biomass, fresh
Page 99 and 100: RAO et al Table 1. Plant height, nu
Page 103 and 104: DEVI et al S.No Category Frequency
Page 105 and 106: DEVI et al extension contact and ma
Page 107 and 108: NIRMALA and VASANTHA earliness in a
Page 109 and 110: NIRMALA and VASANTHA adopted this t
Page 111 and 112: SUDHARANI et al Table 1. Genotypic
Page 113 and 114: SUDHARANI et al At genotypic level,
Page 115 and 116: NIRMALA et al weight of pods per pl
Page 117 and 118: NIRMALA et al Table 3. Cluster mean
Page 123 and 124: PUNYAVATHI and VIJAYALAKSHMI 6.5 6.
Page 125 and 126: PUNYAVATHI and VIJAYALAKSHMI REFERE
Page 127 and 128: KATTEL et al Table 1. Item Analysis
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Page 133 and 134: RAJU et al estimated daily dietary
Page 135 and 136: RAJU et al Table 3. Physico-chemica
Page 139 and 140: MINNIE et al Table 2. Estimates of
Page 141 and 142: Statement about ownership and other
Page 143 and 144: GUIDELINES FOR THE PREPARATION OF M
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