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Research Paper | Economics and Finance | Volume 15 Issue 7, July 2026 | Pages: 1544 - 1548 | India
Cost-Profit Analysis of Sugar Production in Maddur Taluk, Karnataka: A Case Study of Sri Chamundeswari Sugars Limited (SCSL)
Abstract: The sugar industry plays a vital role in India's agro-industrial economy by generating employment, supporting rural livelihoods, and producing value-added products from sugarcane. However, increasing production costs and fluctuating sugar prices have posed significant challenges to the profitability of sugar manufacturing. The present study analyses the cost and profitability of sugar production at Sri Chamundeswari Sugars Limited (SCSL), Maddur Taluk, Karnataka, using secondary data collected for the period 2009-10 to 2018-19. Descriptive statistical tools, including averages, standard deviation, coefficient of variation, and compound annual growth rate, were employed to evaluate production costs, profitability, sugar recovery, and process losses. The results indicate that the average production cost of sugar was Rs. 25,976.24 per tonne, while the average ex-mill selling price was Rs. 29,244.90 per tonne, generating a mean profit of Rs. 3,268.66 per tonne with an average profit margin of 10.86%. Sugarcane procurement cost constituted the major share of production cost, whereas conversion cost remained relatively stable. The study further revealed that higher sugar recovery and lower process losses significantly improved profitability by increasing recoverable sugar and reducing unit production cost. Conversely, years with lower recovery, higher production costs, and declining sugar prices resulted in financial losses. The findings emphasize that improving milling efficiency, minimizing process losses, ensuring timely cane crushing, and promoting value addition through ethanol, cogeneration, and bio-fertilizer production are essential for enhancing the long-term profitability and sustainability of the sugar industry. The study provides valuable insights for factory managers, policymakers, and researchers working towards improving the economic performance of integrated sugar industries.
Keywords: Sugar Production, Cost?Benefit Analysis, Economic Performance, Profitability Analysis, Sugar Industry, Karnataka
How to Cite?: Asha D M, Parvathamma G L, "Cost-Profit Analysis of Sugar Production in Maddur Taluk, Karnataka: A Case Study of Sri Chamundeswari Sugars Limited (SCSL)", Volume 15 Issue 7, July 2026, International Journal of Science and Research (IJSR), Pages: 1544-1548, https://www.ijsr.net/getabstract.php?paperid=SR26718065731, DOI: https://dx.doi.org/10.21275/SR26718065731