Sugar Factory Efficiency Measurement: Application of Data Envelopment Analysis-A New Insight for Managers

Atharva Veda as well as Kautilya's Arthasastra make a mention of five Amrits (elixirs) like milk, curd, ghee (clarified butter), honey, and sugar. which shows how important sugar is not only as an item of production and consumption but as an item which influences the Indian way of life. In a primarily agricultural country like India, any effort for economic development will be based on rapid growth of agriculture and the development of agro-based industries. Now India has emerged as the largest sugar producing country in the world with 15 per cent of share of world sugar production. This paper discusses efficiency measurement in a sugar factory by applying Data Envelopment Analysis. The study confined to sugar factory only in the cooperative sector: Only factors in operation have been considered for the analysis.