Economics of Processing and Marketing of Gur (Jaggery): A Study of Sugarcane-Based Value Addition in Dabra Block of Gwalior District, Madhya Pradesh, India

Abstract

Jaggery (gur) processing constitutes an important rural agro-based enterprise that adds value to sugarcane, India's principal commercial cash crop; however, the economics of this value chain, from unit-level processing costs to final consumer sales, remain under-examined at the district level. This paper draws on primary data collected from ten randomly selected gur-making units in the Dabra block of Gwalior district, Madhya Pradesh, for the agricultural year 2024-25 to examine (i) the cost structure and profitability of gur processing and (ii) the marketing cost, marketing margin, price spread, marketing efficiency and producer's share in the consumer's rupee across the alternative marketing channels through which gur reaches the final consumer. Cane value was found to constitute roughly three-quarters of the total processing cost, leaving processing units with a thin but positive margin and an overall benefit-cost ratio of 1.25. Two marketing channels were identified for gur: a longer channel routed through a wholesaler and a shorter channel involving direct sale to the retailer. The shorter channel recorded markedly higher marketing efficiency (16.67 versus 12.50) and a higher producer's share (91.25 per cent versus 87.50 per cent), confirming that channel length, through its effect on cumulative marketing costs and margins, is the principal determinant of the producer's share in gur marketing. The paper concludes by recommending improvements in processing efficiency, value addition and branding, and the strengthening of direct, shorter marketing channels for gur.