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Technical Efficiency of Sugar Factories in West Godavari District, Andhra Pradesh: A Case Study

Pesala Busenna and Ramesh Vadlamudi

The IUP Journal of Managerial Economics, 2011, vol. IX, issue 2, 34-43

Abstract: This paper analyzes the technical efficiency of four sugar factories in West Godavari District over the period 1985-86 to 2005-06. High efficiency is very important for the survival of a factory. Technical efficiency of a sugar factory depends upon its capacity to extract maximum sugar from the sugarcane. It is determined by several factors, such as reduced mill extraction, reduced boiling house extraction, reduced overall extraction, and sugar loss. The paper reveals that out of the four sugar factories, Andhra Sugars-I at Tanuku maintained minimum sugar loss level and extracted maximum sugar from cane throughout the study period. Thus, the study concludes that this factory was better than the other sugar factories in terms of technical efficiency during the study period.

Date: 2011
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Handle: RePEc:icf:icfjme:v:09:y:2011:i:2:p:34-43