The Performance of Paddy and Rice Mill Cluster in Thanjavur District of Tamil Nadu

By : E. Bhaskaran

Page No: 43-54

Abstract
Micro and Small Manufacturing Enterprises (MSMEs) in Thanjavur who mill rice have to depend on the common facility centre to increase their value addition and productivity by adopting a cluster development approach. They formed the Paddy and Rice Mill Cluster (PRMC) to make use of the common facility centre through interrelationships for cost minimization and profit maximization by converting paddy into rice.The objective is to study the Difference in Differences (DID) on the control and experimental variables on productivity after Government of India and Tamil Nadu Policy Intervention on PRMC. The methodology adopted is collection of data from 27 rice mill manufacturers and performing statistical analyses like CAGR, Descriptive, Correlation, Trend, Regression Analysis and also Structural Equation Modelling. Physical performance is an increasing trend for a number of units, employment and machinery and also for financial performance like turnover as per increasing CAGR. To conclude, the control group (who have not adopted the Cluster Development Approach) and the treatment group (who did adopt Cluster Development Approach) exhibit difference in differences on units, employment, machinery, and turnover. There is an increase in the utilization of the resources of the Common Facility Centre by the experimental group, which has resulted in a productivity increase.The cluster approach has been beneficial to the Paddy and Rice Mill Cluster members, by enabling their utilization of better infrastructure, procurement, technology, production and marketing technologies.

Author :
E. Bhaskaran
Joint Director (Engineering), Department of Industries and Commerce, Government of Tamil Nadu, Guindy, Chennai, Tamil Nadu, India.
 

DOI: https://doi.org/10.32381/PROD.2021.62.01.5