A Key to Uncover the Envelop of Backwardness of Sugar Industry in Bangladesh: An Application of Regression Analysis

Abstract

In this paper, an effort is taken to fish out the inherent backwardness of sugar industry in Bangladesh by applying the multiple regression analysis. The prime objective of the research is to describe the present situation of backwardness of production level and to find out a technique to increase the production level of sugar mills in Bangladesh. Data is chosen from secondary sources i.e. performance reports, annual reports of the selected sample sugar mills and reports of the BSFIC. The total sugar production (Yprod.) is treated as dependent variable and LSM = XLSM (loss of sugar in molasses), RMC = XRMC (Repair and maintenance cost), MH = XMH (Machine hours), UEU = XUEU (Units of energy used) and RR = XRR (Recovery rate) are selected independent variables under the study period. It is implied from analysis that 1 percent decrease in loss of sugar in molasses would result in 7939.63 units upturn in the gross output of sugar if the other factors remain to keep unchanged in the mean position. The coefficient of MH, UEU and RR was found significant at 1 percent level by positive sign indicating these variables had positive impact on sugar production process. It also indicated that 1 percent increase in MH, UEU and RR would result in 3.49 units, 56.59 units and 1174.73 units total production of sugar respectively if other components holding unchanged position at the mean level for each of the variables including in the model. So that the management could increase the amount of total production 9137.63 units by taking the necessary action to increase 1 percent of recovery rate (RR) and at the same time to decrease 1 percent of loss of sugar in molasses (LSM) under the technical arrangement of production procedure of sugar.