AUTO RICE MILLING IN SYLHET CITY CORPORATION – A PROFITABILITY ANALYSIS

Abstract

The study examines the profitability of auto rice milling, adequacy, utilization and repayment of credit taken by the millers in Sylhet City Corporation. Total sample size of the study was 30 in which small auto rice mills were 10, medium were 10 and 10 were the larger mills. Descriptive statistics was used to analyze the collected data. The Study revealed that highest proportion (36.67 percent) of the respondents belonged to age group of above 55 years with education of HSC level (43.33 percent) and average family size was the highest for medium auto rice millers (5.20). Dependency ratios for all sized of rice mill owners were found to be 3.12 which mean every one person is bearing responsibility of living of more than 3 persons. Auto rice milling was the single main occupation for all the respondents irrespective of rice mill categories. Among the categories of auto rice milling, medium auto rice millers were in the higher ranked for annual savings (9.75 percent). All cost, return, and BCR were positively related with size for all types of mill that indicates auto rice milling is a profitable business in the study area. The amount of credit received was the highest for the large mills followed by medium and smaller mills. Highest cost for getting loan was incurred for the cost of credit and major part of the loan was utilized for reported purposes. Status of repayment of loan for medium auto rice mills was 72.44 percent and large auto rice mills was 71.65 percent while it was 65.42 percent for smaller mills. Repayment performance of the borrowers was not fully satisfactory but small and large borrowers were in most disadvantageous position in terms of repayment capacity. The study concluded that auto rice milling is profitable in the study area. The study recommended that in the study area, public and private banks should enhance facilities and be liberalized in sanctioning loan to the auto rice millers.