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Vol. 10, Issue 6 (2021)

Analysis of value addition at weaving stage of cotton processing

Author(s):
SH Kamble
Abstract:
Cotton (Gossypium spp.) the white gold or the king of fiber is the closely linked to human civilization itself. In India cotton industry ranks first among the agro-based industries and engaged human resource about 4 to 5 million people. Cotton is one of the most important commercial crops playing a key role in economics, political and social affair of the world. Cotton processing industry services mainly on its uniqueness of craftsmanship and utilitarian values. The customer too is becoming choosier, paying attention to price and weaving efficiency. The best utilization of raw material for thorough analysis of value addition at weaving stage of cotton processing is necessary. Keeping this in view the present study was undertaken with the following objective- To find out value addition to cotton at weaving stage.
As more number of powerlooms situated in Kolhapur and Sangli district these districts were purposively selected for study. On the basis of availability of powerlooms Hatkanangale and Shirol tehsils from Kolhapur district and Khanapur and Palus tehsils from Sangali district were selected for study. Fifteen weaving units from each selected tehsils were chosen randomly for the collection of required information for the study. Thus, the total sample size was 60.
As more number of powerlooms situated in Kolhapur and Sangli district these districts were purposively selected for study. On the basis of availability of powerlooms Hatkanangale and Shirol tehsils from Kolhapur district and Khanapur and Palus tehsils from Sangali district were selected for study. Fifteen weaving units from each selected tehsils were chosen randomly for the collection of required information for the study. Thus, the total sample size was 60.
Per unit cost of processing of weaving process (yarn to cloth) revealed that the average total cost incurred in the processing of yarn to cloth worked out to Rs. 36.30 lakh of which the total variable cost (Rs. 35.53 lakh) formed the major component in the cost of processing of yarn and amounted for 97.88 percent of the total cost of yarn processing. The fixed cost being Rs. 0.77 lakh accounted for only 2.12 percent of the total cost of processing. In the total variable cost the cost of raw material was Rs. 26.97 lakh accounting for 74.29 percent of the total cost of processing followed by interest on working capital (10.50%), wages to casual labour (9.61%), electricity charges, repair and maintenance, family labour charges, communication charges, office maintenance, corporation tax and license fee together accounted for remaining 3.47 percent of total cost of processing.
In the total fixed cost (Rs. 0.77 lakh) salary to permanent staff (Rs. 0.37 lakh) found to be the major component accounting for 1.02 percent of the total cost of processing followed by depreciation of fixed investment and interest on fixed capital which together accounted for 0.40 percent of the total processing cost.
The gross return obtained and value added in weaving process revealed that on processing of yarn 97 percent of final product (cloth) and 3 percent of waste material was obtained from weaving process. The gross return obtained from weaving unit was Rs. 40.73 lakh which contributed by return from main produce (Rs. 40.64 lakh) and return from wastage (Rs. 0.09 lakh). Raw material cost in weaving process was Rs. 26.88 lakh. The net processing cost was Rs. 9.42 lakh and margin obtained was Rs. 4.43 lakh. The value addition in weaving process was Rs. 13.85 lakh. The output input ratio worked out to be 1.12 in weaving process.
Pages: 49-51  |  115 Views  30 Downloads


The Pharma Innovation Journal
How to cite this article:
SH Kamble. Analysis of value addition at weaving stage of cotton processing. Pharma Innovation 2021;10(6):49-51.

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