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“The Working of Edible Oil Industry in Solapur City Is Not Satisfactory

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“The Working of Edible Oil Industry in Solapur City Is Not Satisfactory “THE WORKING OF EDIBLE OIL INDUSTRY IN SOLAPUR CITY IS NOT SATISFACTORY DURING 1991 TO 2008” A THESIS SUBMITTED TO THE TILAK MAHARASHTRA VIDYAPEETH, PUNE FOR THE DEGREE OF VIDYAVACHASPATI (Ph.D.) DOCTOR OF PHILOSOPHY IN ECONOMICS UNDER THE FACULTY OF MORAL & SOCIAL SCIENCES BY SHRI A. S. HALLI M.A. (ECONOMICS) ASSOCIATE PROF. AND HEAD OF DEPARTMENT OF ECONOMICS, D.A.V. VELANKAR COLLEGE OF COMMERCE, SOLAPUR. UNDER THE GUIDANCE OF DR. A. B. SURYAWANSHI M.A., M. PHIL, PH. D. DEAN, FACULTY OF COMMERCE, SOLAPUR UNIVERSITY, SOLAPUR ASSOCIATE PROF. AND HEAD, DEPARTMENT OF BUSINESS ECONOMICS AND BANK MANAGEMENT, B. P. SULAKHE COMMERCE COLLEGE, BARSHI, DIST. : SOLAPUR. JANUARY - 2011 DECLARATION I hereby declare that the thesis entitled “The Working of Edible Oil Industry in Solapur City is not Satisfactory during – 1991 to 2008” completed and written by me has not previously formed the basis for the award of any Degree or Diploma or other similar title of this or any other University or examining body. Place : Solapur A. S. Halli Date : Research Student C E R T I F I C A T E This is to certify that the thesis entitled “The Working of Edible Oil Industry in Solapur City is not Satisfactory during 1991 to 2008” which is being submitted herewith for the award of the Degree of Vidyavachaspati (Ph.D) in Doctor of Philosophy in Economics of Tilak Maharashtra Vidyapeeth, Pune is the result of original research work completed by Shri A. S. Halli under my supervision and guidance. To the best of my knowledge and belief the work incorporated in this thesis has not formed the basis for the award of any Degree of Similar title of this or any other University or examining body. Place : Barshi Dr.A.B.Suryawanshi Date : Research Guide ACKNOWLEDGEMENT I consider myself fortunate enough to work under the able guidance of Dr. A. B. Suryawanshi, Reader and Head, Dept. of Business Economics and Bank Management, B. P. Sulakhe Commerce College, Barshi, Dist. : Solapur. I express my deep sense of gratitude to him for the valuable advice, constructive criticism, sustained interest and scholarly guidance as well as encouragement throughout my research work. I am thankful to the staff of the following libraries for their help in collection of data and in the review of literature 1. Gokhale Institute of Politics and Economics, Pune. 2. Vaikunthbhai Mehta National Institute of Co-Operative Management, Pune. 3. The Bar.Balasaheb Khardekar Library,Shivaji University, Kolhapur. 4. Indian Institute of Management at Ahmedabad. 5. Sardar Vallabhbhai Patel University, Gujarat. I am also thankful to the staff of the following institutions for their help in collection of data. 1. Solapur District Statistical Department, Solapur. 2. District Industrial Centre, Solapur. 3. Agricultural Produce Market Committee, Solapur 4. Solapur Oil Mill Association, Solapur. 5. Tel-ghani Association, Solapur. I must thank to Shri V. V. Gortyal of Shivsai Computer Services, Solapur for his neat and timely typing and xeroxing services. Place : Solapur A. S. Halli CONTENTS CHAPTER TITLE PAGE NO. NO. I A CURSORY REVIEW OF OIL INDUSTRY 1-35 IN INDIA AND MAHARASHTRA II REVIEW OF LITERATURE AND RESEARCH 36-79 METHODOLOGY III SOCIO-ECONOMIC PROFILE OF SOLAPUR 80-107 CITY IV GOVERNMENT POLICIES TOWARDS OIL 108-147 INDUSTRY V GROWTH AND DEVELOPMENT OF OIL 148-180 MILLS IN SOLAPUR CITY VI ORGANISATION AND MANAGEMENT OF 181-233 SAMPLE OIL MILLS VII BUSINESS OPERATIONS OF SAMPLE OIL 234-279 MILLS VIII PERFORMANCE EVALUATION BASED ON 280-329 RATIO ANALYSIS IX MILL OWNERS PROBLEMS AND 330-341 REACTIONS X CONCLUSIONS AND SUGGESTIONS 342-368 APPENDIX [QUESTIONNAIRE I&II] 369-372 BIBLIOGRAPHY 373-382 LIST OF TABLES Table Title Page No. No. 1.1 Per Capita Consumption Expenditure on Edible 6 Oils, Food Articles and Total 1.2 Number of Oil Mills and Production in 2007-08 8 1.3 Share of Major States in Oil Seeds, Acreage and 11 Production : 2007-08 1.4 Area and Production of Major Oil Seeds Crops 15 (2007-08) in India and Maharashtra 1.5 India’s Percentage Share in World Oil Seeds, 30 Area and Production (2007-08) 1.6 Agriculture Pattern Season wise Crops of 31 Solapur District in 2007-08 1.7 Production of Agriculture Crop of Solapur District 31 in 2007-08 3.1 No. of Industries in Solapur City in 2007-08 86 3.2 No. of Oil Mills and Tel-ghani in Solapur City in 86 2007-08 3.3 Movement of Population in Solapur City during 89 1951 to 2001 Census 3.4 Number of Villages in Each Taluka in Solapur 91 District 3.5 Administrative Structure of Solapur District 92 3.6 Bank Offices in Solapur District in 2005-2006 96 3.7 Co-Op. Societies in Solapur District in Solapur 97 District 3.8 The Area under Various Crops in Solapur 99 District- 2003-2008 Table Title Page No. No. 4.1 Share of Percentage of Acreage/Production of 109 India in the World 4.2 Import Policy for Edible Oil and Oil Seeds 115 4.3 Present Custom Duty Structure (%) of Crude 117 and Refined Edible Oil 4.4 Tariff Value (in US$ per tonne) for Edible Oil in 119 India 4.5 Minimum Support Prices of Oil Seeds 127 4.6 Orders of Capacities 132 4.7 Geographical and Oil Seeds Coverage 132 5.1 Number of Expellers in Mills in 1967 149 5.2 Oil Mills in Solapur City in 2007-08 151 5.3 Number of Oil Mills in Solapur City during 1990- 156 91 to 2007-08 5.4 Number of Tel-ghani in Solapur in 2007-08 159 5.5 Comparative Performance of Traditional Bullock 165 Driven Ghani and Overhead Power Ghani 5.6 Ghani/Yield Capacity in Percentage 167 5.7 Performance of Ghanis in Crushing Oil Seeds in 170 the Different Locations 5.8 Percentage Data of the Ghani 171 5.9 Mini Expellers Crushing Capacity 173 5.10 Mini Expellers Crushing Capacity 174 5.11 Types of Large Scale Expellers and Crushing 177 Capacity Table Title Page No. No. 6.1 Sample Oil Mills in Solapur City in 2007-08 195 6.2 Number of Small Size Sample Oil Mills, 200 Production Capacity, Investment and Working Capital 6.3 Oil and Oil Cake Production by Sample Tel- 202 ghani Units during 1990-91 to 2007-08 6.4 Production of Edible Oil by Sample Oil Mills in 208 City Solapur from 1990-91 to 2007-08 6.5 The Ratio of Production of Oil and Oil Cake from 214 One Quintal of Different Oil Seeds 6.6 Production of Oil Cake by the Sample Oil Mills in 217 Solapur City from 1990-91 to 2007-08 6.7 Pattern of Financing for Oil Industries 223 6.8 Total Investment for Installation of One Expeller 224 (27” x 5”) 6.9 Employment of Sample Oil Mills 226 7.1 Types of Filter Press 242 7.2 Purchase of Edible Oil Seeds of Sample Oil Mills 249 in City of Solapur from 1990-91 to 2007-08 7.3 Purchase of Edible Oil Seeds in Rupees by 251 Sample Oil Mills in City Solapur for 1990-91 to 2007-08 7.4 Cost of Production and Total Purchase Value of 253 Edible Oil Seeds by Sample Oil Mills to in City of Solapur from 1990-91 to 2007-08 7.5 Sale Price and Profit of Sample Oil Mills in City 255 of Solapur from 1990-91 to 2007-08 Table Title Page No. No. 7.6 The Average Market Prices of Edible Oil Seeds 259 in City Solapur (From 1990-91 to 2007-08) 7.7 Pattern of Ownership 268 7.8 Details of Cost of Production under Different 270 Heads 8.1 Current Ratio of all 69 Sample Oil Mills in 288 Solapur City during 2000-01 to 2007-08 8.2 Gross Profit Ratio of all 69 Sample Oil Mills in 291 Solapur City during 2000-01 to 2007-08 8.3 Net Profit Ratio of all 69 Sample Oil Mills in 296 Solapur City during 2000-01 to 2007-08 8.4 Operating Ratio of all 69 Sample Oil Mills in 301 Solapur City during 2000-01 to 2007-08 8.5 Operating Profit Ratio of all 69 Sample Oil Mills 306 in Solapur City during 2000-01 to 2007-08 8.6 Working Capital Turnover Ratio of all 69 Sample 311 Oil Mills in Solapur City during 2000-01 to 2007- 08 8.7 Fixed Assets Turnover Ratio of all 69 Sample Oil 316 Mills in Solapur City during 2000-01 to 2007-08 8.8 Total Assets Turnover Ratio of all 69 Sample Oil 319 Mills in Solapur City during 2000-01 to 2007-08 8.9 Current Assets Turnover Ratio of all 69 Sample 322 Oil Mills in Solapur City during 2000-01 to 2007-08 Table Title Page No. No. 9.1 Weightage of Problem in Percentage as per 336 Sample Oil Mills in Solapur City 10.1 An increased Area under Various Crops in 344 Solapur District during 2003-04 to 2007-08 10.2 Employment in Oil Mills in Solapur City during 346 2003-04 to 2007-08 10.3 An increasing Indirect Employment in 347 Traditional/Commission Agencies and Oil Mills in Solapur City during the year 2003-04 to 2007-08 10.4 An Increasing Indirect Employment in 348 Transportation in Solapur City during the year 2003-04 to 2007-08 10.5 An Increasing Indirect Employment in 349 Agricultural Sector in Solapur District during the year 2003-04 to 2007-08 10.6 An Increasing No.
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