Economic analysis of thin Poha processing units in Bhandara district, Maharashtra

Abstract:

This study was conducted to analyse the cost structure, returns, and break‑even position of Thin Poha processing units in Bhandara district of Maharashtra during 2025‑26. Data were collected from six selected units across three tahsils, representing both small and large enterprises. The results revealed that the total capital investment was ₹10.42 lakh for small units, ₹30.26 lakh for large units, and ₹20.28 lakh overall, with annual establishment costs of ₹0.69 lakh, ₹1.51 lakh, and ₹1.10 lakh respectively. Fixed costs per quintal were ₹194.44, ₹122.96, and ₹140.83, while variable costs per quintal remained uniform at ₹3,980. Gross returns amounted to ₹89.56 lakh for small units, ₹271.85 lakh for large units, and ₹180.71 lakh overall, resulting in net returns of ₹14.42 lakh, ₹50.30 lakh, and ₹32.36 lakh respectively.

The benefit‑cost ratio was above unity (1.19, 1.23, and 1.22), and break‑even output was significantly lower than actual production, with margins of safety exceeding 80 percent. These findings confirm that Thin Poha processing is financially viable, contributing to value addition, rural employment, and sustainable utilization of rice in the region.