CHAPTER NO.III
HISTORY AND DEVELOPMENT OF BALASAHBB DBSAI SAHAKARI
SAEHAR EAREHANA LTD ., DAULATNAGAR
3.1 • Origin.
3.2 Background of Sugar factory.
3.3 Registration of the factory. 3.4 Aims and objectives of the factory.
3.5 Project implementation.
3.6 Cost of Project.
3.7 Capital position.
3.8 Operational Area
3.9 Sugarcane crushed by factory.
3.10 Various Welfare facilities.
3.11 Development of sugarcane area.
3.12 20 Point Programme of the Government of Maharashtra.
3.13 Balasaheb Desai Foundation.
3.14 Financial Position. 4
Patan taluka H. &• Villages District boundary Talgka boundary Road River CHAPTBR-III
HISTORY AND DEVELOPMENT OP BALASAHSB DBSAI SAHAKARI SAKHAR KARKHANA LIMITED, DAULATNAGAR
3.1 ORIGIN i
Maharashtra is the pioneering state in the Co-operative
field, accounting for 87 co-operative factories and 35% of the
National Production. The Cane growers in Ahmednagar district
in Western Maharashtra were able to establish the first
successfully co-operative sugar factory at Pravaranagar in
1950, under the guidance of distinguished co-operators like
Sarvashree Dr♦ Dhananj ayrao Gadgil, Shri Vaikunthbhai Mehta, and Shri Vithalrao Vikhe Patil, which provides the model for
similar venturers latter. "The Co-operatives have functioned
as important growth centres in the region and their role has
been significant in the reduction of incomes disparities,
amergence of leadership and increased participation of the
members in the development process."
3.2 BACKGROUND OP SUGAR FACTORY :
This factory is situated at about 3 Km. towards South
side of Karad Chiplun^major)District Road and 2 Km. towards
South side of Koyana River. Karad Railway Station is 42 Kas.
away from this factory. Whole Patan Taluka is area of opera tion which is completely hilly, wherein the mountain lines of the Sahyadri mountain run through. Patan taluka is a backward area consisting of hills.
It was a difficult job to establish a sugar factory in such
area and still more difficult to get government's approval to start a factory. However, the Late Balasaheb Desai, the honourable leader of the Patan Taluka and the Maharashtra
put all his strength and energy to establish the factory.
The dream of sugar factory for Patan taluka was realized only
because of his arduous efforts and valuable guidance and
co-operation.
The tender plant of sugar factory was watered and tended by his son tSe Late Hon.Shivajirao Desai, the then
Chairman of Balasaheb Desai S.S. Karkhana. He used the Sugar factory as a medium for the upliftment of the hilly
region of Patan taluka. He planned Development Projects in \ the villages of the taluka and worked out the projects
successfully. The face of the taluka was changed in a very
short period. He was regarded as the head of the family of
Patan taluka. But fate did not approve of his good deeds.
A severe heart attack killed him on 12th July, 1986 at
Barshi while he was on his way home from Beed where he had
been on some mission in connection with the sugar factory.
The sugar factory lost its best administrator.
He spent seventeen years of his life for the develop ment of the taluka with the medium of the factory. The Honourable Shambhuraje Desai his enthusiastic son, who has been recently elected to the Chairmanship of the factory is determined to bring into reality the dream of his father and grand-father. He has been ceaselessly striving for the development of the Pat an taluka.
3.3 REGISTRATION OF THE FACTORY :
Balasaheb Desai Sahakari Sakhar Karkhana ltd.,
Dsulatnagar was registered as a Co-operative Society, under the Seetion-9(i) of Maharashtra Co-operative Societies
Act, 1960 (Maharashtra Act, XX7I of 1961), on 14-10-1969.
The registration number of the Society is SAT/PRO/(A) 3.
The licence No.l-25/N-246/70 1C, dated 19.9.1970 and year of installation September, 1973.
3.4 AIMS AND OBJECTIVES OP THE FACTORY ;
The aim and objective of the Co-operative Sugar Factory are to secure social justice and /Import) modern technology in agricultural operations and other objectives such as to improve the economic conditions of the agriculturists through the Co-operative Processing and marketing of their products mainly of sugarcane and its by-products. Besides, attaining the economic uplift of oane cultivators, the co-operative leaders aimed at spreading to the weaker section of the community at large a part of the gains arising from successful functioning of the sugar factory, providing much needed irri gation facilities and disseminating technical guidance and agricultural expansion service to obtain high yields. In addition to this, other social activities like education, primary health, small agro-based industries and alround deve lopment of the farmers is the primary aim; the sugar factory*s agricultural extension service includes soil testing, tractor, ploughing etc.
3.5 PROJECT IMPLEMENTATION :
Balasaheb Desai Sahakari Sakhar Karkhana Ltd.,
Daulatnagar is located in the Industrially and naturally backward area of Satara district near the town of Karad and
Patan. Project cost the factory is less than other sugar factories licenced in the year 1970. This sugar factory is famous sugar factory in Maharashtra because of its sugar
A-1 quality.
3.6 COST OF PROJECT :
As originally scheduled, the plant was to go into operation in the beginning of year 1969 at an estimated cost of Rs.3*00 crores. However, due to many uncontrolable factors, actual production could be commenced only in the month of November, 1973 during which the project cost went up sub- staintally on account of additional interest burden and other expenses. The project cost finally increased to the tune of Rs.3.25 crores.
3.7 CAPITAL POSITION i The Share Capital collected from the sugarcane growers and non-producer institutions of the factory. Collection of Share Capital from the member was a difficult task in so far as the member of the sugar factory happen to be the farmers who were denied membership by the neighbouring co-operative sugar factory. Hence, special efforts were made to persuade the Reserve Bank of India to issue authorisation for sanction and disbursement of long-term loans to the poor cultivator members for purchase of shares through the village primary co-operatives. Initially, Government of Maharashtra has contributed an amount of Rs.45.00 lakhs towards Share Capital.
Table No.1 : Following table shows that growth of the member ship and their number of shares amount contri buted from beginning from 1969-70 to 1986-87.
Year No. of No. of Amount members shares subscribed
1969-70 795 1500 18,50,280 1970-71 1907 2559 18,77,500 1971-72 3200 4086 27,74,025 1972-73 3841 4123 29,16,125 30
Table No.1 : (Contd...)
Year No. of No. of Amount Members Shares subscribed
1973-74 4299 4581 32,38,125
1974-75 4746 4327 41,39,370
1975-76 4803 5384 41,96,370
1976-77 4678 5011 40,97,153
1977-78 4755 5049 41,40,000
1978-79 4778 5063 42,30,055
1979-80 4808 5096 42,65,567
1980-81 4987 5259 44,05,610
1981-82 5399 5672 46,91,693
1982-83 5748 5748 48,49,000
1983-84 5748 6000 50,42,000
1984-85 5751 6000 52,24,000
1985-86 5760 6000 53,28,630
1986-87 5767 6000 53,74,328
Source : Annual Reports of Balasaheb Desai Sahakari Sakhar Karkhana, Ltd., Daulatnagar.
3.8 OPERATIONAL AREA :
The operational area of the sugar factory comprises of whole Patan Taluka of Satara District. Comprises 203 villages from Patan Taluka. g r o w to h f m e m b e r 4 sNO h- o i r pSHARes «n BALASAHEB DESA] S.S. K. Ltd. OAu lATNAGAR UP To ) 9 8 ^
70-71 71-72. 72-75 7 f . f r74-7S 7»*7< 7«-77 77-78 78-73 73-8o 8o-8. 01-62 82-85 85-8
Table No.2 : Statement showing operational area of factory.
District Taluk a No .of villages
Satara Pat an 203
Source ; Memorandum of Balasaheb Desai S.S.K., Ltd.,
3.9 SUGrARCANB CRUSHED BY FACTORY :
The factory went into production in the year 1973-74 its first trial season. The work was completed and the factory started with the sincere efforts of the Chairman and the Board of Directors of this factory. This factory is situated in hilly area, soils in this area of operation are light to medium, so shortage of cane during crushing season. So the Chairman has trying to increase area under sugarcane •
In the subsequent years, however, increasing quantities of sugarcane were crushed as detailed here under. (See Table No.3).
• • • Table No*3 : Sugarcane crushed by the Factory.
• Season : Annual Cru- • Total cane : Sugar pro- i Recovery : shing capa- : crushed : duced (in * <*) • • i city of the e (in lakhs : lakhs bags) • • • • : Mill (per • M.T.) • • • • • : day M.T.) • • •
1973-74 1250 0.16 0.16 10.24
1974-75 1250 1.41 1.62 11.50
1975-76 1250 1.78 2.09 11.74
1976-77 1250 1.87 2.00 10.71
1977-78 1250 2.06 2.40 11.65
1978-79 1250 2.01 2.48 12.26 II
1979-80 1250 1.52 1.76 11.55
1980-81 1250 1.73 2.07 11.86
1981-82 1250 2.58 3.02 11.71
1982-83 1250 2.62 3.02 11.53
1983-84 1250 1.70 2.01 11.82
1984-85 1250 1.39 1.62 11.67
1985-86 1250 1.78 2.06 11.58
1986-87 1250 2.13 2.53 11.86
Source : Annual Reports of Balasaheb Desai Sahakari Sakhar Karkhana ltd.,
Note : Figures in Roman Script in Column No.5 indicate the ranks in respect of recovery obtained by thefactory all over India.
Percentage) RECOVERY(In -11 -11 -10 -9 r o 34 OF
RECOVERY
&
crushed
S.S.K.LTD. Produced
PRODUCED
DESAI Sugarcane Recovery
SUGAR ♦-Sugar — £>
DAULATNAGAR ------0 BALASAHEB CRUSHED,
THE * -- SI'.ARCANE — —
"- - - - - YEARS
50 25 75 25 . . . . 3 3 4 5 5.0
r> Rs.140/- per tone to sugarcane suppliers. During the season 1976-77, factory made the crushing of 1.87 lakhs M.T. of sugarcane and produced 2.00 lakhs bags of sugar, however, the recovery fell down from 11.74# in last season to 10.71#. As result factory could pay Rs.135 per tone to supplier as against Rs.140 per tone in last season. During the season 1984-85 the crushing was of 1.39 lakhs M.T. which produced 1.62 lakhs bags of sugar with recovery of 11.67#. However, during this season the factory paid Rs.283/- per tonne to sugarcane suppliers. It means the rate of sugar cane to per tonne is increased from Rs.240/'- per tonne of the last year. During the season 1985-86 the crushing was of 1.78 lakhs M.T. tonnes which was more than the previous year. The production of sugar bags, also increased upto 2.06 lakhs. 3.10 VARIOUS WELFARE FACILITIES : The factory has provided various welfare facilities to the worker some of them are statutory and remaining are non- statutory. They are mentioned below. 3*11.1 Ventilation : The factory has constructed a modern type of building so that a proper ventiliation is ensured through circulation of fresh air for every department of the plant. The ceiling fans are also fixed in and every department for circulation of clean and fresh air. 3.11.2 Lighting : Factory management has provided sufficient and suitable lighting by both natural and artificial ways. There are glased windows and sky lights also provided on the machines. 3*11.3 Rose Garden and Horticulture : Apart from rose garden spread over about 2 acres, the factory premises now abounds in varigated trees of different types, both of seasonal and permanent nature. 3.11.4 Safety Bquipment : The management has provided necessary safety equipment to the worker like Gogals, Hand-gloves, Gum-boots, etc. All the moving parts of each engine is properly furnished on the fire precaution. The management has kept sand buckets and cylinders in every dangerous place. The management has pro vided two dresses for each worker every year. 3.11.5 Drinking Water : The management has provided clear water to the worker. Cold water is also provided at the time, of summer and has dug many more tube well in the factory area. 3.11.6 Latrines and Urinals i The factory has provided latrines and urinals and also they are kept fin)dean an 3.11.7 Recreational facilities : The management has provided recreational facilities to the workers and staff, such as sports,' games,M.V. reading V ) room, library etc. v 3.11.8 Housing facilities : The factory has provided housing facilities, to the worker as well as to the officers at the reasonable rent. 3.11.9 Medical facilities i There is one dispensary in the factory premises, that is primary health centre by the Z.P. for the factory. Besides the first-aid-box has been provided to every department of the factory. 38 3*11*10 Co-operative Credit Society : The Co-operative Society was founded which known as Balasaheb Desai Kamgar Sahakari Society ltd., Daul&tnagar. It runs rationing shops, Kirana goods its. It also supplies loans upto 5000 rupees to the members of the Society. * 3*11.11 Consumer Society : Recently the factory has founded consumers society. It is known as Shivtej Orahak Bhandar to supply the workers the essential goods at the cheap rates. 3*11*12 Other facilities : The management has provided banking facilities, Post-office, cycle stand, rest room for workers in the factory premises. 3*11*13 Bonus : The management has distributed bonus to all the factory workers in every year. In this year 1985-86, the management has given 20% bonus to the worker. 3*11*14 Diesel and Petrol Pumps : Indian Oil Corporation has sanction petrol pumps at Karkhana site. 3*12.1 Development of sugarcane area : In order that the factory should not suffer for UtJ want of sugarcane, which is the basic raw material in the production of sugar, it undertakes the responsibility or supplying high yielding varieties of sugarcane strains to the members cultivations. Since sugarcane cultivation requires an assured and regular supply of water, the factory has sponsored a number of lift irrigation schemes based on co-operative principles. In an effort of extend the area under sugarcane cultivation, the factory is keen on extending the irrigation facilities to as a large number of farmers as possible within its area of operation. In order to achieve am higher level of efficiency in terms of productivity improvement in the cultivation of sugarcane. 3.12.2 Pilot Scheme : This scheme recommended by the Government of Maharashtra is being implemented by the factory since 1976. The factory gives warranty to the sugarcane producers parti cipated in this scheme for the sanctioh of loans from D.C.C. Bank, Bank of Maharashtra and State Bank of India. The factory renders fertilizers and seeds to those who do not obtain loans from the Banks mentioned sansthas. As a result the cane area and average per acre, producer is definately increased during the Annual Report. 3.12*3 Cultivation : The factory made availability of the tractors ploying and making furrars. Factory(^invsote^)63008 Ruppes)for the ..... work of ploying and making furrars for 180 acres and 14 Gunthas of 378 farmers in time and area of sugar plantation is increased. 3*12.4 Seed distribution Scheme : The factory has been supplying the standard seed of sugarcane on its own cost to cane producers. The sugarcane seed is to be brought from Padegaon-Cane Development Centre, Padegaon. Similarly, the supply of seeds were also made available on credit from the seed plots of the other producers. The factory has also provided the new seed namely CO-6415, 671 from Karnataka. During the year 1981-81, the factory supplied the cane seed as under : Table No,4 : Table showing supply of sugarcane seed (Year 1986-87). Variety No.of Producers No.ofsetts/ Amount M.T. Rs. CO-740 29 3,33.900 31,046 CO-7219 12 86,520 7,826 QOC 671 197 84,820 18,217 CO 6415 46 2,04,620 20,004 CO 7704 212 14,16,612 1,51,931 Total 496 30,26,472 3,09,024 41 3.12.5 Lift Irrigation Schemes : There are 30 public irrigation schemes in the area of the factory, out of them 22 irrigation schemes are in operation and remaining 8 schemes are under construction. The Balasaheb Desai Co-operative Irrigation Scheme, Gandhi Tekadi in one of the big irrigation scheme which is able to make the water supply for 1500 acres of land. The factory has invested Rs.37,67,613/" in the various 21 big public irrigation schemes upto 39.9.1985. Upto last year the factory has made a large investment of Rs.73»44,592/- in various water supply schemes. 3*12.6 Chemical Fertilizers Supply : The factory had licence for the buying and selling of the chemical fertilizers and factory supplies the ferti lizers in time at reasonable rates to the farmers in the year 1986-8$ cost of Rs.34.92 lakhs. Table No.5 i Statement showing the supply of chemical fertilizers by the factory during 1986-8^. Sr. Type of fertilizer No.of bags Amount No. (in lakh Rs.) 1 Urea 9082 10.12 2 Sufala 15 x 15 x 15 5183 5.38 3 Sufala 20 x 20 x 0 4000 4.02 7190 ft 42 Table No.5 : (Contd...) Sr. Type of fertilizer No.of bags Amount No. (in lakh Rs. 4. Sampuma 4400 6.38 5. Growgreen 138 0.21 6. Grow mix 299 0.19 7. Agrowmin 807 0.69 8. N.P.K. 10 x 26 x 26 331 0.22 9. Naitrin 544 0.57 10. Samrat 18 x 46 x 0 2366 3.37 11. Super phosphet 385 0.26 12. Potash 455 0.66 13- Sona 2291 2.15 Total Rs. 34.92 The above table indicates that during the year 1986-8)1 the factory has made this supply of 29»950 bags of chemical fertilizers to the producer members which has cost Rs. 34*92 lakhs* 3.12.7 Plantation Subsidy Scheme : In order to increase cane area and early plantation the factory decided to distributed subsidy of 400 rupees per acre for odd-season plantation and 300 rupees for per season plantation. 3.12.8 Backward Lower Land Holders subsidy Scheme : The factory has implemented the above mentioned scheme since 1981-82 according to the Policy of Government of Maharashtra. Table No.6 : Statement showing sugarcane acreage under the area of factory. Zone No. Name of zone Sugarcane acres 1 Mah 1534 2 Gandhitekadi 1018 3 Pat an 1036 4 Marali 1123 5 Dhebewadi 403 Source : Annual Report 1984-85 of Balasaheb Desai Sahakari Sakhar Karkhana Ltd. Daulatnagar. Before the establishment of the sugar factory acreage under sugarcane only 465 acre, but in the year of 1985-86 the acreage under sugarcane increased upto 5114 acre. 3.13 20 POINT PROGRAMME OP THB GOVT.OP MAHARASHTRA : Pactory has implemented 20 point programme of the Government of Maharashtra. 44 3*13*1 Water supply in hill area : Daring summer season Zilla Parishad of Satara supplies water to the villages in hill area through the tankers and factory freely supplies water to the tankers. 3.13*2 Family Planning Programmes : The factory has given 50,000 ruppes to the Collector of Satara to the implementation of Family Planning Programme. 3*13*3 Primary Schools in hill area : The boys in the hill area do not have the advantage of education due to economic backwardness. In order to cultural likely for education and for permanent school facility, factory decided to give Rs.7000 subsidy for a room in the hill area villages. 3*13*4 Gobar Gas Plant : The cultivator members are encouraged to construct gobar gas plants of various capacities and are provided with subsidy equal to the amount of subsidy paid by the village cottage industries commission. The subsidy ratio is based on installed capacity. Following table shows the Gobar Gas subsidy given by the factory from year 198>-84 to 1986-87. Table No.7 : Table shows the Gobar Gas subsidy given by the factory in following years. Year Total Gobar Gas Total subsidy Plants (Rs.) 1983-84 71 46,150 1984-85 80 51,850 1985-86 63 38,300 1986-87 168 1,02,850 3.13*5 To increase production of oil seeds : The factory has distributed subsidy for increasing the summer groundnut production. J.14.1 Balasaheb Desai Foundation : Balasaheb Desai Foundation is a Charitable Trust. It is founded for the alround development and the educational facilities. Daulat Industrial Training Institute is started since August, 1985. This Institute runs the following courses i i) Surveyor, il) Welder, iil) Wireman, iv) Draughtsman Mechanical v) Electrician, vi) Seatmetal workers , vii) Tailoring and cutting. A) Authorised Share Capital ; 1) 10,000 shares at Rs.1,000 each for producer members. 1,00,00,000 2} 6,000 Redeemable Preference Shares at Rs.1,000/= each for Maharashtra Government 60,00,000 3) 500 Shares at Rs.1,000/- each for Co-operative Societies and other Institutes. 5,00,000 1,65,00,000 B) Issued Capital : 1) 6,000 Shares for sugarcane producer at Rs.1,000/- each 60,00,000 2) 6,000 Redeemable preference shares of Rs.1,000/- each 60,00,000 3) 500 Shares for Co-operative Societies 4 others at Rs.1,000/- e ach 5,00,000 1,25,00,000 Particulars As on 30.9.1985 Rs. C) Subscribed Capital : 1} 6,000 shares at Rs.1,000 each 60,00,000 2) 6,929 shares at Rs.1,000 each by Maharashtra Government 69,29,000 3) 233 Shares at Rs.1,000 each by Co-op. Societies and others 2,33,000 1,31,62,000 D) Paid-up Capital : 1) Producer Members - a) 4817 fall paid-up 48,17,000 b) 1183 partly paid-up 4,06,900 2) Maharashtra Government - 5500 Redeemable Pref. shares 55,00,000 3) Co-Operative Societies and Others - a) 210 fully paid-up 2,10,000 b) 23 partly paid-up 85,000 1,09,42,400 The above information shows that the factory has issued all the shares to the producer members. But the factory can still issue the shares to State Government and Co-operative Societies.