An economic analysis of processing of groundnut in Haryana

The study examines the economics of groundnut processing, comparing oil processing units and decorticating units. The analysis revealed that the total cost per quintal was notably higher in oil processing units (Rs 17,829.33/ q) than in decorticating units (Rs 8.273.57/q). Similarly, net return was more favourable in oil processing units (Rs 161.55/q) compared to decorticating units (Rs 130.59/q). To maintain profitability without loss, an average processing of 342.81 quintals of groundnut kernels or 813.10 quintals of groundnut oil was necessary for decorticating and oil processing units respectively. The research identified key challenges, including scarcity and costly skilled labour during peak seasons, high machinery expenses, inconsistent power supply, difficulties in obtaining repairs and spare parts, intricate bank financing procedures, expensive raw materials and elevated transportation costs.