CHAPTER 5

GROWTH OF SUGAR INDUSTRY

CONTENTS

3.1 History and development. '

3.2 Development of sugar industry in .

3-3 Development of sugar industry in .

3.4 Zone and region-wise location of installed sugar factories in Maharashtra.

3.5 Progress of sugar factories during 1950-“51 to 1993-94.

3.6 Area production and yield of sugarcane in Maharashtra.

3.7 Selected Norms of Technical efficiency and the performance of sugar factories in Maharashtra.

3.8 Inter zone performance of co-operative sugar factories-

3.9 Chrdnological history of sugar industry in

District. CHAPTER 3

GROWTH OF SUBftR INDUSTRY

3,1 HISTORY & DEVELOPMENT, The sugar industry being the second largest organized

Industry next in importance to Textile Industry plays eminent role in economic life of India. The sugar industry has a great significance which cannot be developed in its relation to agricultural and industrial economy of the rural region of India.

It is an industry which affects agriculture fundamentally. Therefore, the expansion of sugar industry in India is an indispensable factor for the uplift of socio-economy life of

Jnd i a. Sugar has been known to India about 2000 years and there is ample evidence to show that India is the original home of sugarcane as also of sugar in the epics as one of the five

"Nectar", i.e. celestial sweets. Nothing tastes so sweet as sugar. Even the English term "sugar" is a derivative of the

"Shakkara" was in vogue in Prakrit literature for sugar.

Thereafter its mention is found in many languages with different names varying in pronunciation though resembling in some way. It has been mentioned as "schakr" in persian, "sukkar" in Arabic,

"Suicar" in Assurian, "Saccharum" in Latin, "Azucar" in spanish and Portuguese, "Zuchero" in Italian, "Sucre" in french, "Zucker" in German and son. Ment.ton about sugarcane is found in the Atharva Veda in SOOO B.C. there is perhaps no earlier description of sugarcane than this in the hoary history of the world.

Reference of sugar are found long long ago in the Institute of manu and the treatises of charaka and susruta dealing with medicine.

5 1 5.2 DEVELOPtlENX OF SUBftR INDUSTRY IN INDIA SuQarcane and its main product are known in India since ancient times. The earliest reference of sugarcane appears in Atharava Veda, the sacred book of Hindus composed between 5000 and 1000 B.C. Efforts to establish a modern sugar industry however go back only to the beginning of the present century, India lies entirely to the north of equator. Hence, sugarcane is grown in nearly all parts of India. The First Sugar Factory in India was started in 1784 by a civilian, croftes, at sooksugar which was privately owned.

The Second Factory was started in 1791 in Bihar by L.T.

Patterson. Then Mr. Edward Campell stove to start another sugar Factory at Trichinapally in Madras State, but he did not succeed. But at the same time, Robert Campbell succeed in establsihing a sugar factory in the same area. According to Mr. Robert Campbell, a sugar factory can not succeed unless it possessed its own sugarcane farm. A logical e>^tension of the co-operative Philosophy to the sugar industry was first made in 1933 when four sugar manufacturing enterprises in the co-operative sector were established at Biswan < Uttar Pradesh), Thummpala Etikoppaka and

Vuyyuru (now in Andhra Pradesh). These were established immediately after the sugar industry in the country was granted protection. Out of these, only the Factory of Ettikoppaka has survied- But this surviving sugar factory does not seem to have inspired the scheme of the co-operative factories that was launched in 1954 in India. The credit for initiating this scheme should go to the Pravaranagar co-operative sugar factory

52 established in 1948. Due to the efforts of Prof- Dr. D.R.Gadgil, the factory could start its first crushing season in the year 1950 -51 with a capcity of 450 tons. This venture proved to be a great success and consequently the management ujas soon able to rasie the capcity of 1450 tons.'^ The information about the number of Sugar

Factories established in Private, public and cooperative sectors in India is given in Table 1.1.

The progress of the sugar industry in the post-

Independence period is depicated in the following tables

Table No. 5^-1 PROSRESS OF THE SU6AR INDUSTRY IN INDIA

Year Area Production No. of Total under of sugar­ factori es sugar sugarcane cane in produced < *000 <'000 operation ('000 hectares) tonnes) tonnes >

1950.51 1,707 54,823 139 1,100

1960.61 2,415 1,10,001 174 3,021 1970.71 2,615 1,26,360 215 3,740

1980.81 2,667 1,54,248 315 5,148

1987.88 3,287 1,96723 357 9,110 1993.94 3,368 2,27059 394 9,833

Source: Co-opertive Sugar. May 95 : vol.26, No. 9.

Table NO- 1 shows the statewise increase in sugar factories in India. In 1973 the number of licienced and established sugar factories was 294 of which 235 had alredy gone into production and 61 were in erection. In 1986 367 sugar

53 factories were in production t< 28 were newly licenced. In 1993— 94 405 sugar factories were in production. The important point to be noted is that the proportion of private sugar factories in the total was higher at 49.32y» while the proportion of co-opsugar factories was 45.27%. The proportion of sugar factories in the public sector was 5.41 percent (orl6)

3.5 DEVELOPMENT OF SUGAR INDUSTRY IN MAHARASHTRA The sugar industry today occupies a premier position in the field of processing of agricultural produce on co-operative lines. In 1950-51 there were in all 13 working sugar factories in the state, of which only one was in the co-operative sector. By the year 1993-94 there were 104 sugar factories, of which 101 were in co-operative sector. 3.3.1 Dr R.M.Karche, in his research publication "Sugar Co­ operatives in Developing Economy" has traced the origin of first sugar factory in Maharashtra in the year 1919 in private sector.

It was started by the British Company at Haregaon, In Ahmednagar district. The Walchandnagar Industries Ltd. establixhed their Walchaandnagar Sugar Farm in the year 1930 and started its sugar factory. By that time, as mentio9ned earlier, in 1930 itself, the Government of India appointed Tariff Commissioner to examine the needs of protection ot the sugar industry which recommended for production protection to the sugar industry for a period of

14 years. It resulted in the establishment of 12 more sugar factories in private sector in Maharashtra by the end of second world war. The private sugar factories developed their own sugarcane farms, adopted moern cultivation practices and sowed farms, adopted modern cultivation practices and sowed the seeds

54 of sugarcane of improved varieties- 3.3.2. Emergence of Sugar Co-operative Factyory in Maharashtra could be traced to 1947. No effort ujas made in the Old Bombay

State (now part of the State of Maharashtra after re­ organisation) to organise any co-operative sugar factory till 1947. The first co-operative sugar factory was registered in Ahmednagar district at Pravaranagar in the year 1948 with the efforts of great co- operators like Late Shri V.L. Mehta, Dr.

Gadgil, Shri V.K.Patil. 3.3.3. The congenial climatic conditions of Maharashtra and the role palayed both by this co-operative leadership and thousands of sugarcane grower farmers in the different regions of the state promoted faster growth of the co-operative sugar industry. Prior to the development of the sugar indusstry in Maharashtra the sugarcane growing track of Ahmednagar, Solapur and other draught prone areas presented a barren look where practically nothing grew. After the establishment of a series of sugar factories in the area the face of agriculture entirely changed due to sustained efforts of leadership, agricultural scientists and farmers efforts.

3.3.4. There was considerable growth in the establishment of co­ operative sugar factories in Maharashtra after the Industrieal

Policy Resolution of 1956. It is interesting to note that not a single sugar factory came up in private sector in Maharashtra after this till 1988. As a matter of fact during this period a numbe rof private sugar units were converted into co-operative sugar units. The subsequent development of the industry has followed as per the growth potential in different zones or regions of Maharashtra.

55 3.3.5. Agro-climatically and as per physical geo-physical characteristics, there are four natural regions/zones in which Maharashtra is divided. These are <1) South Maharashtra, (2) Central Maharashtra, (3) North-east Maharashtra, and <4) West— \ coast Maharashtra >Konkan). Cropping pattern and cultivation practices are naturally different in each of these regions/zones. Sugarcane crop is also no exception. Cane cultivation practices, sugarcane yield, Pol V* can ein sugarcane vary from zone to zone.

•'Sugar factories have been established in 3 zones viz/ (1) South Maharashtra, <2) Central Maharashtra and (3) North-east

Maharashtra. No sugar factory has been installed in the west- coast region of Maharashtra (Konkan region)-" The details about the districts farming part of each zone and the number of installed sugar factories in the districts as compiled by the Vasant Dada Sugar Institute, for the season 1992—93 and

1993- 94 are reproduced as this is the only source of up-to-date information relating to Maharashtra.

3-4 ZONE AND REBIQN-MISE LOCflTlON OF INSTALLED SUGAR FACTORIES IN

MAHARASHTRA» As indicated earlier the 108 SLigar factories in

Maharashtra are located in South, Central and North East zone only. Data relating to zone-wise and district-wise within the zone are given in Table 1.2

South Zone 21.30 percent.

56 Table^.2

ZONE «r REBION-WIBE LOCATIONOF INSTALLED SU6AR FACTORIES IN

THE STATE OF MAHARASHTRA

Zone/districts No.of installed *A of total sugar factories in the zone

1. South Zone 23 21-30

2. Central Zone 44 40-74 3. North-East Zone 41 37.96 Total 108 100-00

Sources Performance of surgar factories in Maharashtra —Seasons 1992-93 8< 1993-94 compiled by Vasant Dada Sugar Insti tute.

3-5 PROGRESS OF SUBAR FACTORIES DURING 1950-51 TO 1 9 9 3 - 9 4 Table-IJ.2 (B) PROGRESS QF SUGAR INDUSTRY IN MAHARASHTRA Number of sugar factories established 8< commissioned

Year In co-op.sector In private sector Total

1950-51 1 12 13 1960-61 20 12 32 1970-71 48 11 59 1980-81 71 11 82 1990-91 93 8 101 1992-93 101 4 105 193-94 104 4 108 Performance of sugar factories in Maharashtra Seasons 1992—93 1993-94. Compiled by Vasant Dada Sugar Industries, Pune.

3.5.1 The progress of the sugar industry is the state of

Maharashtra over the last 43 years is present at a glance in Table t^.2(0). It could be seen that during the year 1950-51 there was only on co-operative sugar factory against the total number of 13 sugar factories in Maharashtra. The private sugar

57 factory thus completely out numbered the co-operative sugar factories. however during the next ten years ending 1960-61, there has been tremendous growth in the number of co-operative

sugar factories. During this period almost two co-op- Sigar factories were installed every year. As a result of which 20 were co­ operative sugar factories. no private factory came up during

this period. 3.5.2 By 1970—71 the figure of installed co-operative sugar factories jumped to 48 while the number of private factories came

doen from 12 to 11 making the total to 50. Again by 9*80—81, the number of co-operative sugar factories increased to 71 out of the total number of sugar factories of 82 in Maharashtra of which ony

11 factories were in the private sector. The tempo of growht in the installation of co-operative sugar factories was maintianed

till 1990-91, when in the previous 10 years, 22 new co-operative sugar factories were installed bringing the total number to 93 out of 101 susgar factories in maharashtra. The number of private sugar factories came down from 11 in 1980—81 to 8 in

1990-91. in the next three years 11 more co-operative sugar

factories were installed bringing the total to 104 b y 1993-94 out of 108 in the state. The number of private factoriss came further down form 8 to 4.

3.5.3 Though the number of installted sugar factories on record are 108 during 1993-94 in fact all the factoire swere not in operation. Data relating the zone-wise number of sugar factoires

in co-operation is given in Table 1.3 for the last two years

1992- 93 and 1993-94.

58 Table *3*3

ZONE-WISE NUMBER OF CO-OPERATIVE AND PRIVATE SU8AR FACTORIES

IN OPERATION AND NOT IN OPERATION IN MAHARASHTRA DUR1N6 1992-93 & 1993-94. (Upper f igure 1993-94, Lowf igure 1992-93)

In operation No, of factories Total not in operation estab1ished

Zone Co-op. Private Total Co-op. Priavte Total

South 23 — 23 — — ~ 23 23 - 23 - “ - 23 Central 38 41 2 1 3 44 39 4 4 3 - — — 43 North- 33 ~ 33 8 8 41 East 33 “ 33 6 6 39

Total 94 3 97 10 1 11 108 State 95 4 99 6 6 105

Source — Ibid

3.5.4 Table no. shows the overall state picture that emerged for the year 1992-93 was 105 sugar factories of which 95 or 90.48 per cent were in the co-operative sector. Of thetotal 99 co­ operative sugar factories, 5.71 % were not operating. The number of private sugar factories were a negligible number of 4 only. In 1993-94, the number of operational sugar factoires went down to

97. Out of 108, of which 94 were in the co-operative sector and three in the private sector. The distressing feature that is noticed is the increase in the number of non-operatioanl co­ operative sugar factories to the tune of 10 which formed 9.43 percent of the total numbe of installed sugar factories in maharashtra.

59 3,6 AREA PR0DUCTIJ3N_fiND YIELD OF BUBmCf^NE IN MAHAARABHTRA It could be seen from Table ^>4 that the area under sugarcane in Maharashtra delcined by 14.85 % in 1993—94, The cropped area under sugarcane came douin from 4.04 lakh hectores in

1992—93 to 3.44 lakh hectares in 1993-94. As a result of this sugarcane production came doMn from 309.23 lakh M.T. in 1992—93 to 278.92 lakh M.T.in 1993—94, registering a decline by 9,80 The only consolation that hte industry could get was an increase in per heactare productivity to the tune of 4.54 M.T. in 1993—94 over 1992-93. This partly compensated for the 14.85 V* decline in sugarcane area. The improvement in average yield rate was to the extent of 5.93 */*. this again suggests a role played by the grower members whose contribution in achieving profitability for the organisation is eqally important as the contribution of professionals and the team of workers.

Table ^.4

AREA OF PRODUCTION AND YIELD OF SUBARCANE IN MAHARASHTRA DURING 1992-93 ?< 1993-94

Particular 1992-93 1993-94 % increase or decreae (“) in 1993-94 over 1992-93

Area under sugarcane invested lakh of hectare 4.04 3.44 i-) 14-85 Reduction of sugarcane (lakh of M.T.) 309.23 278.92 (-) 9.80 Average yield of sugarcane

6 0 3,7 SELECTED NORMS OF TECHNICAL EFFICIENCY AND THE PERFORMANCE

OF SUBAR FACTORIES IN MAHARASHTRA, 3.7.1 There are various norms identified for juding the technical and actual performance of sugar factories. However for the purpose of assessing the technical efficiency and perofrmance of sugar factories in maharashtra we have selected only four norms which is considered to be closely related to the perofrmance of people on the job, the professionals, the workers and the grower members alike. These are the

Maharashtra in relation to the technical efficiency norms for the year 1992-93 and 1993-94 are given in Table 1.5. 3.7.3 Gross duration of operations the standard norm for gorss duration of operation is fi>jed at 160 days of gross duration of operationof the sugar plant of 2000 TCD to 5000 TCD. It could be seen that during 1992-93 the sugar factories operated for 148

days which meant that the factories overrated 1 2 days less than the standard norms, reduction by 7.5*/» int he days of operation from standard norm. The situatio in 1993-94 became more critical and the factories operated on an average for 124 dyas ony a reduced numer of days by 36 or 22.5

3.7.4 Capacity utilisation: The capacity utilisation of sugar factories is one of the most important norms indicating technical efficiency of the enterprise. Capacity utlisation is primarily dependent as cane supply by grower members and non-members

61 besides technical effieciency of the professionals to reduce break-down and closures.

Table 5 -5 SELECTED NORMS OF TECHNICAL EFFICIENCY AND ACTUAL PERFORMANCE OF SUGAR FACTORIES IN THE STATE OF MAHARASHTRA DURING 1992-93 S< 1993-94

Selected technical Standard Peroformance of sugar */ deviation Characteristics norms factories in the state from standard norms

1992-93 1993-94

1. Duration of days 160 148 124 -7.50 -22.50 gross duration of (operat ion) 2. Capac i i ty 100.00 91 .64 85.79 -8,36 “ 14.21 uti1isation %

3 . Lost y. of hours to available hours 10.00 15.20 18. 18 5.20 8.18 4, Total sugar lost as */♦ to cane crushed 2.20 2. 12 2.05

3.7.5 Lost percentage of hours to available hours: It could be seen that the standard lost percentage of hours to availabale hours is 1 0 - 0 0 as against the average percentage of hours lost to available hours during 1992-93 and 1993-94 was lS-20 and 18.18 respectively. The increase in percentage of hours lost to available hours indicated the need for better management of man and the machines.

3.7.6 Sugar lost as percentage to cane crushed: The standard norm for loss of sugar as its percentage to total cane crushed is

2.20. On an average the factories were able to reduce sugar loss below the standard provided for thereby contributed to the profitability of the factoires- The average sugar loss druing

1992-93 and 1993- 94 was 2.12 */♦ and 2.05 % respectively as

against the permissible limit of 2 . 2 0 */..

6 7 3.8 INTER ZONE PERFORMANCE gi^CQ-QPERftTlVE 8UBAFI FflCTORIESi

3.8.1 It coLild be seen from Table ^ . 6 that though the number of sugar factories in iperation Mas only 23 in south zone as

compared to 43 (1992-93) in central zone and 33 in north east zone, the average installed capacity per factory uias over 2300 TCD per day. To be exact it was 2782 M.T. per day in 1992—93 and 2869 M.T- per day in 1993-94. Thus, it could be concluded that

average majority of the factories were with 2500 M.T. (TCD) and

5000 M.T> (TCD). As a result of which average quantity of cane crushed per factory was also highest for the south zone. During

1992-93 season, the average per factory was 4.64 lakh M.T. which

however came down from to 3.79 lakh M.T. during 1993-94 season mainly due to low cane production.

3.8.2 It could be seen that the average installed capacity in central and north east zone did not vary much with majority of the factories falling between 2000 M.T, (TCD) to 2500 M.T. (TCD), the average cane crushed by he factories in north-east zone was

f o r below the central zone. As a matter of fact on an average during 1993-94 the factories in north east zone operated for 116 days only as against 129 days in central zone and 128 days in

south zone. 3.8.3 In terms of contribution of different zones in sugar production it was highest for central zone, 14.76 lakh (43.92 % of total ) and 11.66 lakh (42.48 *A) quintals during 1992-93 and 1993- 94 respectively.

3.8.4 Interms of percentage utilisation and sugar recovery it was the south zone which showed high degree of performance. The

average capacity utilisation during 1992-93 and 1993-94

6 3 respectively. 3.8.5 In terms of percentage utilisation and sugar recovery it was the south zone which showed high degree of performance. The average capacity utilisation during 1992—93 and 1993~9'4 was

95.52% and 94.8054 respectively- Teh sugar recovery was also above 12 %• Against this the capacity utilisation for factory in central zone was 93.24 % in 1992—93 and 85.48 *A in 1993—94 with sugar recovery declining to 10.81 */♦ in 1993-94 as compared to

11.05 % in 1993-94. 3.8.6 The factories in north east zone rather show poor performance with average capacity utilisation to the extent of 75.86 X and 72.73 */. during 1992-93 and 1993-94. The sugar recovery percentage was also lowest. As against the state average of 11.32 % for the 1992-93 and 11,14 % for 1993-94. It was 10.59 % and 10.27 */* respectively for the zone. With this detailed analysis of the sugar industry and developmet of sugar

CO- operatives in the state of Maharastra the profits of the three selected factories are presenated in the next chapter to analyse the environemntal and organisational setup which will help in critical analysing of the human resource development aspects of the co-operative sugar industry in Maharashtra.

64 Table - : ^ , 6 THE STATEMENT < ZONE-WISE ) SHaOiNQ CANE CRUSHED, SUGAR PRODUCTION, RECOVERY */. AND SOME TECHNICAL CHARACTERISTICS FOR THE SEASON 92-93 8< 93-94 OF SUGAR FACTIRIES IN MAHARASHTRA. Zone \ Installed Cane Gross days Sugar Prod- */* of •/. of Factory selected Capaci ty Crush of Operat— in lakh Utili Reco­ In Ope- Factory (Lakh TCD tion Quintals zation very rat ion South Zone 1992-93 0.64 106.79 167 12-84 95-52 12.03 23 (0.02782) (4,64) <38.21) 1993-94 87.08 128 10-54 94-80 12.06 23 (0.028&9) (3.79) <43-92)

Central Zone 1992-93 0.91 133-67 152 14-76 93.24 11.05 43 <0.021167) (3-10) <43-92) 1993-94 0.91 108.00 129 1 1 - 6 6 85-48 10.81 41 (0.02341) (2.63) <42.48) North-East Zone 1992-93 0.67 56.74 129 6 . 0 0 75-86 10.59 33 (0.2030) (1.72) <17-87) 1993-94 0.74 51.58 116 5.29 72.73 10,27 33 (0.02242) (1-56) <19.13) Total Zone 1992-93 2 . 2 2 297-20 148 33.60 91-64 11.32 99 1993-94 2.36 246-66 124 27-45 85-79 11.14 i) Figures include figures of 4 andthree privatesugar factories 92-93, 93-94. i i) Figures in coluam 2 in () are percentage per factory, i i i) Figures in coluam 3 and 5 are average per factory.

3.9 HISTORY OF SUGAR INDUSTRY IN AHMEDNAGAR DISTRICT

Background

The first two decades of this century witnessed events which radically changed the economy of this district . The events related to the construction of two major irrigation projects viz.

The Godavari and Pravara canals by then Government of Bombay

65 f o u n d it very difficult to manage the canals economically, the main reason wae an insufficient and a fluctuating demand. For the canal water. In the begining uiater Mas available for foodgrains only, but foodgrains cultivation' did not require water regularly and on a large scale. Further foodgrain could not bear high irrigation rates, thus making management of canals very unremunarative. The main problem for the irrigation authorities

uias to develop such crops which would consume water supply at a regular intervals, would consume water to the maximum extent and in concentrated area, and at the same time bear high water

charges. It was found that sugarcane was the only crop which

satisfied the conditions mentioned above. This explains the Governments positive interest in the extension of cane

cultivation on the canals. Sugarcane however, is not the final consumption

article. It had to be converted into a product which can be preserved and will be demanded by a large numbner of comsumers. "Khandsan"

In the earlier days of the extension of cane

cultivation sugarcane was mainly used for 'gul' manufacturing.

'Gul' manufacturing was suitable for various reasons. 'Gul' was one of the main articles of household consumption and had regular

demand. It had an extensive and a widely dispersed market.

Further, m a n u f acturing of 'Gul' did not requier costly machinary or highly technical skill. Marketing of 'gul' did not pose much difficulty as market could be readily found in the neighbouring

area's of cane cultivation. But there are obvious limitations of 'gul' manufacturing. 'Gul' is a bulky commodity and not very

6 6 convinient for transportation over long distance. Secondly it is a perishable article and could not be stored easily for long time. Thirdly market fluctuating violently and so income of the cultivators. The Provincial Government soon became concerned about the retention of area under cane. This attracted Governments attraction to the white sugar industry. The prevailing conditions in the post-first-world war period werefavourable to the sugar industry. In comparison with

'gul' sugar was more prtable and it had a wide market, further, sugar prices were also sufficiently high on account of war conditions. In fact, the shortage of sugar e>tperienced during the first— world—war awakened the British Government and brought out the need of developing sugar industry in India. This led to the appointment of the Indian sugar committee <1917) to conssider the question of the possibility of organising and developing sugar industry in India. It will be appreciated that the sugar industry in the district owes its origin to the construction of irrigation works, the Governments anxiety of the remunerative management of the canals and the limitations of

'gul' industry. The history of the sugar in the district may be divided into three periods. (1) 1919 - 1934,

<2) 1934 - 1950, <3) 1950 on words.

<1> 1919 -1934; The Period of difficult vears.

In the year 1917, at the suggestion of Mr. Mead, the then Director of Industries, the Government of Bombay Mr. Frank

6 7 Harrison, the Head ofTiarshall sons and co Ltd Bombay, commenced working ona scheme for sugar factory on the pravara canals, then newly opened. After a carefully study, Mr. Harison arrived at the following conclusions <1) The cultivation practices of the farmer were old & costly.

<2> For successful sugar manufacturing cost of cane must be low, which was possible only if cane was grown on scientific lines, by following modern and mechanized method of cultivation. (3) Cultivation of cane is not only costly, but its supply is also not guaranteed as it is always likely to be diverted to

’gul' production such diversion to 'gul' production had in fact caused the failure of Nira vally sugar company, the first sugar factory in the Deccan. The Promoters registered the company as Belapur co- Ltd, in 1919, with a nominal capital of Rs. 40 lakhs According to the origional plan the companywas to start its first crushing season in 1921-22. The company was going through acute financial difficulties capital washeavily locked up in land, drainage, roads etc with the result that very little was left for cultivation and improvement of cane and for working expenses.

The company was on the verge of financial collapse. The failure of the Belapur company would have been the gretest blow to the sugar industry in the Deccan but fortunately, a complete failure of this pioneering experiment was avoided. At this stage sir

Joseph key, Managing Director of Messrs. W. H. Brandy & Company

agreed to take an active part in the management. Marshall 8< sons, the promoters and the managing agents, of the company retired. The assistance of Messrs. Brady and company gave b

6 8 breathinQ space and the company escaped from the thred of

1 iquidation. The stordy of hardships did not end there- The formidable task ujas still ahead, It i«)as mainly in the agricultural sector that the economy was confronted uiith challenging task. The land available for cultivation t^as poor

and uneven necessitating high capital expenditure on land development. Poor land and use of hired labour increased the costs. ^ On the machanical side the difficulty was that the plant was not designed for dealing with high yielding thick canes like

'pundya'. These two factors coupled with a delay in theerection of plant compelled the co to convert into 'gul' rather than sugar. The five years 1921-25 showed recurring and ever increasing losses amounting to Rs. 8.57 lakhs. It was only the

financial help of Rs. 6 lakh extended by the Government of Bombay

that enabled the co to advert another financial collapse. Half of the CD's share capital was written off and the losses were wiped out. The following two years were heartening and the company made profits worth Rs 1 lakhs in the year 1927. In the year 1929 the company declared dividend to the share holders,

restored capital losses and reapayed the Govt's loan of Rs 6 lakhs. Sugar industry on the Deccan canals was thus firmly established.

<2) 1930-195QB The Period of Development

The decade 1930-40 saw the estab1ishement four new factories and the expansion of the existing factory.

The new plants were

69 (1) The Maharashtra Sugar Mills, Tilaknagar - 1934

(2) The Belwand; SuQar farm Ltd., Shrigonda - 1934

<3) The Godavari Sugar Mi 11s-

a) Sakarwadi - 1939

b) LaMmiwadi - 1940

In 1934 Messers. Dahanukar and company promoted the

Maharashtra Sugar Mills withan inital capital of Rs. 5 lakhs. It

started functioning with the daily curshing capacity of 150 tons

only, but expanded the company to 600 tons within a period of

few years. In the same year ie 1934 , the Dahanukars Promoted

another sugar company in southern taluka of Shrigond. The

Balewandi sugar farm Ltd. is the only sugar factory derving water

from a tank (vie. Visapur TAnk). It is a comparatively small in

size. As water supply from the Visapur Tank is not guaranteed, it

has to be closed in times of Famine.

Messrs Somaiya and sons promoted the Godavari Sugar

Mills the First factory on the Godavari canals Its inital capital

was Rs. 13 Lakhs. The company acquired about 7000 acres of land

on Godavari canals. The oringinal plant had the crushing

capacity of 600 tons which was increased to 1000 tons ne>:t day.

In the year 1940, the Godavari Sugar Mill opened

another plant at Laxmiwadi on the Godavari canals. It purchased

the old machinary of the Belapur company. It started functioning

regularly fron 1942 with an initial capacity of 250 tons which was increased to 1000 tons later on.

The change deo sugaj' mills was floated with a capital of Rs. 22.5 lakhs in theyear 1 9 4 1 . It is located on Dhond-Manmad

Railway line, and draws its cane supply mainly from the area served by the Godavari Right Bank canal. It started working with

7 0 an initial capacity of 350 tons which u>as increased to 500 tons

in 1750 and 650 tons in 1954.

By the end of 1950 the position of sugar industry was

as under.

There were six factories operating in the district,

with the total crushing capacity of 4250 tons per day. The total

share capital amounted to over Rs, 120 lakhs. The si>: units

togather manufactured 5 0,00 0 tons of sugar and provided

employment to about 23,000 persons on plantation and 5842 persons

in factories. —.

(3 ) Post 1950 Periods Erea/of Ccj-op erat i ves

The thirty years Vbejxween 1920-1950 have exhibited a phenomenal growth of sugar industry in this district. This was made possible by the tariff protection, facilities provided by

the provinical Govt anc:l the vertical integration in which the

sugar factories undertook the cultivation of sugarcane also.

The enlightenment of the farmers coupledwith the prosperity experenced by the agriculturists during the war period gave way to a new idea vi2, co operative sugar factory of the cane growers. Like the sugar factories in the Private sector,

factories in the co-operative sector also involved vertial

integration, taut the integration was in the upward direction

i.e., the cane growers undertook a succeeding process of manufacturing. The cane grown guarnateed to supply cane to the factory which they themselves owned. Ownership of the factory by the cane growers had the effect of establishing an idetity of

Interests of the growers and the manufacturers . The idea of co­ operative factory was Fructified on account of the Governments

7 1 sympathetic attitude. The favourable attitude of the Government expressed itself in licensing policy followed by it. It may be noted that the co-operatives were favoured while issuing licenses to new factories. It was inl950, that the first co-operative sugar factory viz. The Pravara Sahakari Sakhar Karkhona Ltd was registered. After 1950 in A. Nagar district following 14 co­ operative industries are started namly 1) Pravara, 2) Ashok,

3) Dhyaneshwar, 4) Ganesh, 5) Jagdamba, 6 ) Kopargaon, 7) Mula,

8 ) Parner, 9) Rahuri , 10) Sangamner, 11) Sanjiwani, 12) Shrigonda, 13) Agasti ?< 14) Vridheshwar.

REFERENCES 1. Inamdar N.R.

Government t< Co-operative Suger Factories

P.l 8< 2, 19^>5 Popular Prakashan, Bombay.

2. V.Malyadri.

Socio—Economic Impact of Suger Co-operative Factories,

P. 1 8< 2, 1975, Commerce Prakashan, Bombay.

3. Souvenir, Bombay

The Belapur Co. Ltd, 1956

4. Wynne Saver, Report on the future of Irrigation on the Deccan Canals, Govt. Of Bombay, 1928.

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