Business analysis of dal mill (Krishi Sahyog farmers producer company Ltd.)

The present study undertakes a comprehensive economic analysis of pigeon pea (Cajanus cajan) cultivation and its subsequent processing under a Farmer Producer Company (FPC) framework, specifically examining the Krishi Sahyog Farmers Producer Company Ltd., situated in Amravati district of Maharashtra. With pigeon pea being a drought-tolerant, protein-rich pulse crop critical to Indian food security, this study aims to evaluate both farm-level production economics and post-harvest value addition processes to assess financial viability and operational efficiency within an organized producer structure. Primary and secondary data were collected from 60 member farmers and processing unit stakeholders. The input utilization pattern per hectare included 20.9 person-days of hired labour, 11.16 days of family labour, 5.98 bullock-pair days, and 4.91 hours of machine use. Inputs such as 12.74 qt of seed, 3.9 tonnes of manure, and macro-nutrients (N, P, K) were documented, with total cultivation cost (Cost C) computed at ₹78,322.21/ha and a benefit-cost ratio (B:C) of 1.54 indicating a 54% return on investment, thus confirmin g the economic sustainability of pigeon pea farming. For the processing unit, a detailed cost analysis revealed total fixed costs of ₹4,48,800 and variable costs of ₹1,30,75,242, with the latter dominated by raw material procurement (91.78%). The processing cost per quintal stood at ₹6,762.02, with a total cost incurred per quintal (including marketing and raw material) reaching ₹13,892.02. With a recovery rate of 62.5%, the mill produced 1,250 qt of Tur dal from 2,000 qt of raw pigeon pea, achieving a gross return of ₹1.62 crore and net returns of ₹27.26 lakh, yielding a processing B:C ratio of 1.20. Constraints identified include pest infestation, price fluctuation, inadequate cleaning and drying, and lack of skilled labour, which impact both efficiency and profitability. These findings underscore the critical role of FPCs in enhancing value-chain integration, reducing transaction costs, and improving rural livelihoods. The study concludes that strategic support for FPC-led infrastructure, training, and market linkages can significantly elevate the socio-economic outcomes for smallholder pulse producers in India.