Open AccessDeterminants of Relative Efficiency in Indian Food Processing Sector
Author(s) -
Akashdeep Singh Smagh,
Khushdeep Dharni,
Pushpinder Vashisht,
Ramandeep Kumar Sharma
Publication year - 2021
Publication title -
journal of economics, management and trade
Language(s) - English
Resource type - Journals
ISSN - 2456-9216
DOI - 10.9734/jemt/2021/v27i530341
Subject(s) - food processing , business , agricultural economics , econometrics , economics , food science , chemistry
The present study was undertaken to measure and compare the relative efficiencies of selected Food Processing Companies in India. The relationship between firm performance and selected variables in food processing sector has also been studied. Set considered for analysis consisted of 20 food processing companies with period of analysis covering 8 years from 2005 to 2012. Efficiency status of the firm was regressed upon using capital to sales ratio, labor cost to sales ratio, raw material cost to sales ratio and energy cost to sales ratio as explanatory variable. Results indicate that except for labor cost to sales ratio all other variables were having significant negative impact on the efficiency of food processing companies.