Economic Insights into Paper Sweet Making Units in Dr. B.R. Ambedkar Konaseema District, Andhra Pradesh, India

Abstract

The present study examines the economics and constraints of paper sweet-making units in Atreyapuram Mandal of Dr. B.R. Ambedkar Konaseema District, Andhra Pradesh. Data were collected from 15 micro and 15 macro units using purposive random sampling. The economic analysis highlights the financial viability of these units, with both categories showing positive Net Present Value (NPV) and Benefit-Cost Ratios (BCR) exceeding one. The Internal Rate of Return (IRR) stood at 51.19% for micro units and 67.98% for macro units, indicating substantial profitability. Macro units, benefiting from larger production capacities and investments, were more profitable than micro units.The break-even production level was 7,559.6 boxes for micro units and 7,598.7 boxes for macro units, with actual production levels averaging < 30,000 boxes and > 30,000 boxes, respectively. Despite their profitability, paper sweet-making units face challenges such as inconsistent raw material supply, labor shortages, inadequate credit access, and quality control issues. Marketing constraints, including seasonal demand fluctuations and low-profit margins, further hinder growth.