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VOL. 11, ISSUE 3 (2026)
Economic analysis of establishment cost and returns of a soybean oil processing unit in Buldhana District of Maharashtra
Authors
Vaishnavi Dattatray Dhande, A S Tingre, S N Suryawanshi, S V Warade
Abstract
The soybean processing industry plays an important role in the agricultural economy by converting soybean into edible oil and other commercially valuable products. The present study was undertaken to examine the establishment cost and economic performance of Vinayak Gold Oil Pvt. Ltd., Chikhli, in Buldhana district of Maharashtra. The study was based primarily on field-level information collected from the processing unit for the agricultural year 2025–26. The first objective was to estimate the establishment cost of the processing unit, while the second objective was to analyse the cost and returns associated with soybean oil production. The establishment cost of the unit was estimated at ₹1,42,65,000. Solvent extraction plant and machinery represented the major share of the investment, followed by the boiler and land and building. During the study period, the unit recorded an annual gross income of ₹56,67,01,950 against a total cost of ₹45,90,90,351. Variable cost accounted for the major portion of total cost, amounting to ₹45,48,01,087, while fixed cost was ₹42,89,264. The resulting net return was ₹10,76,11,599. The benefit-cost ratio was estimated at 1.23, indicating that the processing activity was economically viable during the study period. The findings demonstrate that efficient utilization of processing capacity, cost management and investment in appropriate processing infrastructure are important for maintaining profitability in soybean oil processing enterprises.
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Pages:228-231
How to cite this article:
Vaishnavi Dattatray Dhande, A S Tingre, S N Suryawanshi, S V Warade "Economic analysis of establishment cost and returns of a soybean oil processing unit in Buldhana District of Maharashtra". International Journal of Food Science and Nutrition, Vol 11, Issue 3, 2026, Pages 228-231
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