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Conclusions for Economic Feasibility Studies

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Considering the issues in the last two sections the following recommendations for economic analyses of mechanical drying can be made: 

1. Investing in a dryer for saving the crop. 

2. The problem is that in this case the fixed cost component of the drying cost (depreciation) per batch is very high because the dryer is only used in emergency, meaning a few times a year.

3. A dryer used only in emergency cannot be used economically.

4. Realistic data should be used for the annual dryer utilization considering alternatives like the option to Sun dry during good weather.

5. The price difference for wet and dry paddy needs to be sufficient to compensate for: the cost of drying; for the weight loss that occurs during drying; and to provide some profit for the operation.

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