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Economics of Resource Utilization: A Case Study of Sirsa Cooperative Milk Plant


Ripi Doni1*, Priyanka Lal2 and A.K Chauhan3



Indian Journal of Economics and Development
Volume 15 No. 3, 2019, 455-460
DOI: 10.5958/2322-0430.2019.00057.X
Indexed in Clarivate Analytics (ESCI) of WoS

Ripi Doni1*, Priyanka Lal2 and A.K Chauhan3
1 Ph.D. Scholar, Division of Agricultural Economics, Statistics and Management, ICAR-IARI, New Delhi-110012
2Ph.D. Scholar, and 3Principal Scientist Division of Dairy Economics, Statistics, and Management
ICAR-NDRI, Karnal-132001 (Haryana)
*Corresponding author’s email:

The present study was conducted for estimating resource utilization in Sirsa cooperative milk plant. Estimating the energy utilization in different sections of the milk plant will reveal whether the energy was being utilized efficiently or there is wastage of energy. Total electricity consumption in the plant was 1970 thousand units during 2014-15. Among different sections of milk plant, most of the electricity was consumed in the refrigeration section (41.94 per cent) and least for the reception section (0.99 per cent). The total quantity of steam produced was 5840000 kg. Steam requirement during the processing of pasteurization was 0.11 kg/1000 ml, 0.22 kg for one kilogram of Paneer, 0.34 kg for a kilo of Ghee, 0.14 kg/1000ml of Dahi and 0.71 kg for one kilogram of SMP. Highest refrigeration was utilized for pasteurization of milk (67.89 kilocalories/litre) followed by Paneer (55.4 kilocalories/kg), and Dahi (31.41 kilocalories per 1000ml), respectively. Total water lifting in the plant was 91250 kilolitres. The cost of water pumping was worked out to be `9.43 per kilolitre of water. The share of the fixed cost was only 2.00 per cent of the total cost whereas the share of the variable cost was 98.00 per cent. Crate washing and cane cleaning utilized the highest amount of water (32.26 per cent) followed by pasteurization section (16 per cent), and least for production section (3.23 per cent). The highest manpower was employed in engineering section (24.07 per cent) and production section (24.07 per cent), followed by procurement section (13.96 per cent) and least for marketing section (3.70 per cent). Among different variable cost, electricity cost alone accounted for 64.92 per cent of the total cost whereas labour cost accounted for 11.08 per cent. Water and annual maintenance charges of the refrigeration section shares 1.76 and 0.49 per cent, respectively.
Cooperative milk plant, efficiency, pasteurization, resource utilization.
JEL Codes
J22, J24, J54, L25, L66, L94, L95, M11, Q13, Q25.

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