An Analytical Study on Production Cost of Brick Industry with Considering Social Cost and Benefits: With special reference to Western Uttar Pradesh (India)

Abstract

Purpose: Brick Industry is the major participant in the informal sector of India, operational as small scale industry in utmost in rural or semi-urban aress.in this study, researcher tried to conduct an economic analysis of this industry while considering social cost and benefits. The purpose of this study to conduct production cost analysis because and determination of selling price of bricks in western Uttar Pradesh. Methodology: The present study is based on primary and secondary data. Primary data have been collected through interpersonal interview guided by structured questionnaire with the entrepreneurs, employees and working lobour in brick industry. An Excel tool, Ratios, have been used to analyse the data. This study is confined to western uttar pradesh region; researcher surveyed 40 brick kilns in different district of western uttar pradesh out of which 5 years data (2016 to 2020) of 20 brick kilns are used for analysis purpose. Findings: Social Cost:  Out of total registered brick kilns Western Uttar Pradesh, 60% to 65% are using traditional technology for brick making like FCBTK which consumes high amount of fuel and resources and highly pulluting and they have negative impact on environment and health. Cost Analysis: Brick industry is labour intensive industry and consist approx 33% share of total cost, next fuel is the cost which is approx 30% of total cost. Profit margin of selected units of last 5 years varies in the range of 20% to 30%. The P/V ratio remains in range 25% to 35% with an average of 31.8%. Implications: This study, while not entirely revolutionary, constitutes a move to profound cost benefit analysis of brick industry in Western Uttar Pradesh. Originality: till now, no indepth study on cost analysis of brick industry has been conducted in Western Uttar Pradesh region.