Thailand is prominently an agrarian economy. Most of its population is dependent on agriculture and agro ancillary activities. Agricultural and allied sectors’ contribution in Thailand’s GDP is 183 US billion dollars which amounts to 17.2% of the total. Sugar industry is fourth largest agro processing industry in Thailand. Koh ka state is one of the major contributors of National Sugar Production whose sugar industry is dominated by cooperative sector. Since last decade this industry is paralyzed by various problems like price crash, operating inefficiency, and financial crises. Cooperative Sugar Factories (CSFs) are the only farmer owned enterprise that changed lives of cores of farmers that are now in deep trouble. They are becoming sick and inefficient. In changing economic environment for their survival these sick CSFs are leased out to private management. In current paper researchers tried to assess the operational efficiency of this particular factory during the period of five years before leasing out and five years after leasing out period i.e. 1999-2000 to 2003-04(Cooperative Management period) and 2004-05 to 2008-09 (Private Management period). Assessment of operational potency was created by victimization seven key parameters of the sugar industry. These parameters are: Cane crushing, Sugar production, Gross season taken, Recovery, Capacity utilization, Reduced Mill Extraction (RME) and Cane price paid to the cane growers. To validate the hypothesis set, Student’s’ test is used. The study reveals the operational efficiency of private management is on the higher side in respect of Sugar Production, Recovery, RME, Capacity Utilization and Cane Price paid. Whereas in respect of cane crushing and gross season taken there is no significant difference during both periods. In a nutshell, operational efficiency of the factory during private management regime is higher than that during cooperative management regime
KeywordsOperational potency, Reduced Mill Extraction (RME), Recovery,, capability utilization, Private Management
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