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An Economic Analysis of Sugar Mills in India-DEA Approach

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S. Praveena, K. Mahendran, and T. Samsai

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Indian Journal of Economics and Development
Year : 2016, Volume : 12, Issue : 1a
First page : ( 377) Last page : ( 380)
Print ISSN : 2277-5412. Online ISSN : 2322-0430.
Article DOI : 10.5958/2322-0430.2016.00092.5

An Economic Analysis of Sugar Mills in India-DEA Approach

Praveena S.1,*, Mahendran K.2, Samsai T.2
1Thanthai Roever Institute of Agriculture and Rural development, (Affiliated to TNAU, Coimbatore), Valikandapuram, Perambalur

2Department of Agricultural and Rural Management, Tamil Nadu Agricultural University, Coimbatore-641003

*Corresponding author’s email: sspriyamba@gmail.com

JEL Codes O53, C49, Q13, C50

Online published on 26 April, 2016.

Abstract
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.

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