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CHAPTER - VII MANAGEMENT OF OPERATIONAL PERFORMANCE OF VIGHNAHAR CO­ OPERATIVE SUGAR FACTORY LTD CHAPTER VII MANAGEMENT OF OPERATIONAL PERFORMANCE OF VIGHNAHAR CO­ OPERATIVE SUGAR FACTORY LTD 7.1 INTRODUCTION: This chapter studies the Management of operational performance of Vighnahar co-operative sugar factory Ltd. For the purpose of this research a case study method has been adopted. This chapter contains details of the historical background, aims and objectives, location and command area, initial period, turn around strategy, membership, administrative and management structure, financial structure, increase in membership and share capital etc. Then the operational performance of the factory, expansion of crushing capacity, area under sugarcane (in hectors), cane crushed (in tones), sugar production (in quintals), capacity utilization and time lost, sugar recovery (%), crushing season (days), average cane yield (tone per hector), cane price (Rs. per tone), have been explained. 7.2 HISTORICAL BACKGROUND : Junnar Taluka is well known from historical times. It is the birthplace of the great Maratha warrior Shivaji Maharaj. It’s a well- known religious place too, for the Samadhi of Chaitanya Maharaj who was the Guru of the well-known Sant Tukaram Maharaj. Geographically it is the far end of Pune District. The 2001 census shows that out of the total population of 3,69,806 of the Junnar Taluka, agriculture sector has provided the main source of livelihood to as many as 3,45,065 people or nearly 93.30% of the population. The main source of irrigation was wells 246 because very few villages were getting water from the Yedgaon left bank canal, emerging directly from the kukadi, Yedgaon dam. If the farmers were lucky in having well water, could irrigate vegetable gardens, fruit plantations and even small plots of sugarcane. That time, Junnar Taluka was famous for banana gardens. The sugarcane was cultivated in well and canal area and mostly in various villages namely Otur, Shiroli, Ozar, Naryangoan, Manchar, Bori, Umbraj, etc. The sugarcane was mainly used for ‘gur’ production. There were number of ‘gur’ manufacturing establishments, called gurhal, managed by individual sugarcane growers. But the farmers always faced the danger of widely fluctuating prices of gur and the resultant losses. The marketing of banana had a number of malpractices on the parts of traders. They were not paying the prices in time and the prices were also subjected to many deductions. There was uncertain trend in the movement of prices of bananas. It is said, “next to rain, price changes have been the greatest enemy of the farmers”. Geographically, Junnar Taluka is situated on the Banks of rivers- Bhima, Kukadi, and Mandvi & Meena. The western region is mostly a hilly region surrounded by the mountains Sahyadri mountains ranges & Deccan plateau. The western region of the Taluka gets abundant rains whereas the eastern part is mostly a draught prone area. Previously the Taluka was mostly dependent on well irrigation as the other irrigation sources were not available round the year. But whatever irrigation potential was available; it was fully utilized by the hard working farmers of the region. The cropping pattern of the region was as follows. Western region - Paddy, 947 Central region - Cash crops, vegetables etc Eastern region - bajra, jawar But the people in the area are very hard working & industrious. With improving nearness to Mumbai, due to a new & closer highway, increasing business spirit in the farmers ultimately influenced the total agriculture of the region. The farmers have specialized themselves in horticulture, floriculture and growing vegetables. But the irregularity of rains, the unpredictable climatic conditions shattered the dreams of the farmers. The experience of the last two- decade was striking, as though horticulture vegetables fetched them very good returns some times, it proved totally risky to rely upon farming. The universal law of economics played a vital role. High prices for their produce were followed by abundant supply in the season, which in turn were followed by lowest prices. The rainfall uncertain and the marketing uncertainty were the main causes of their increasing indebtedness. The problems of the farmers were intensified with increase of labour intensive farming of vegetables and horticulture. It was further intensified with shortage of farm labour, which again increased their expenses. This naturally resulted in the creative re-thinking of crop patterns among the farmers. They came to the conclusion that in the prevailing circumstances sugarcane cultivation was the most appropriate solution to their problem. There was a man with the vision to look into future. The honorable, devoted, selfless chairman Mr. Nivruttisheth Sherkar sensed the mood of the people at a very right time and took an initiative in the nick of time, motivated the farmers for cultivating sugarcane. 248 7.3 REGISTRATION: As it was against the socio-economic background, the local leaders and the farmers naturally thought that they could attain certain degree of prosperity by forming a co-operative sugar factory in Junnar Taluka. The farmers began to organize themselves because they wanted greater control over marketing than they could get as individual clients of gur brokers. The success of the co-operative experiment at Shrioli, Dhalewadi, in the Taluka was also a source of inspiration to them. Under such circumstances, various social leaders like Nivruttisheth Sherkar, Sopansheth Sherkar, S.M.Kale, late Ramkrushna More, Valhabh Benke, Dilip Valse Patil took lead in creating confidence among the farmers and inspired them to organize themselves for establishing a co-operative sugar factory. These leaders held number of public meetings in various villages to get support from the village farmers who were to be the shareholders and cane suppliers. Nivruttisheth Sherkar also encouraged the leaders and farmers. The idea of forming a co-operative sugar factory comprising of all villages in the Junnar and Ambegaon Taluka was first discussed in a meeting of the farmers presided over by Shri. Niruttisheth Sherkar at Shiroli on 11-11-1976. The result of the meeting was that the farmers jointly sent their application for co-operative sugar factory to the Government of Maharashtra. The application was submitted with reference to the first note dated 21-02-1977 issued by the Government of Maharashtra asking the public to apply for licenses to set up co-operative sugar factories in the state. His appeal was appreciated and supported by the people. The people entrusted with him the responsibility of chief promoter ship. 74Q Again his vision was prominent. The existing sugarcane from the Taluka alone was not sufficient to run a sugar factory. He then got the Shri Vighnahar co-operative sugar factory Ltd. registered in 1981 with Junnar and Ambegaon as the area of operation. The factory site was selected. It was a barren land on a small hill. A big reservoir dam of Kukadi irrigation project surrounded it. Though there was a natural abundance of water at a comparatively nearer place, it was hindered by a clearance to be sought from Pollution Control Board. The advantage was stabilized by clearance from environmentalists and Pollution Control Board. The total cost of the proposed project was estimated to Rs. 1 crore. It was decided to collect RslO lack from farmers as share capital. An amount of Rs 10 lack was proposed to be contributed to the share capital by the state Government and Rs 80 lacks was to be expected jointly from Industrial Finance Corporation (IFC) and state co­ operative bank by way of loan. The local farmers started to collect the share capital and actually they collected a sum of Rs 156,70 lack. The Government agreed to contribute Rs 286,50 lack towards the share capital. The Industrial Finance and State Co-operative Bank advanced loans worth Rs 43 lacks and Rs 28.24 lacks respectively. The willingness of the state Government, Industrial Finance Corporation and the state co­ operative Bank to bear the financial responsibility was the most important factor in raising finance for the co-operative sugar factory at Junnar. After procedural formalities, the Maharashtra Government sanctioned registration under the Maharashtra Co-operative Societies Act. 1960, to the Junner co-operative sugar factory Limited on 17* October 1981. Thereafter, the factory obtained an industrial licence on 31*‘ December 1984. The factory placed its order on 19**^ July 1982 for machinery having crushing capacity of 1250 tons of cane per day with M/S Richards and Crud’s Company Mumbai. The company had sent its experts to supervise the erection work. The erection work started on 12*'’ September 1983 and was completed in Decemberl984. The factory started the production from 16**’ February 1985. Thus, the ideas of a co-operative sugar factory in Junnar Taluka became a reality within a period of three years from the date of registration. It is one of the five co-operative sugar factories in Pune District, established during that period. But due to the unending efforts of Mr. Nivruttisheth Sherkar, all the hindrances were cleared by ‘Vighnahar’ and the machinery of factory was installed in 1984-85. At last the dream of the farmers, shareholders and visionary Chairman came into reality. 7.4 AIMS AND OBJECTIVES: The main aims and objectives incorporated in the by-laws of the factories are: To get more benefit of the agricultural product to members and farmers by using modem methods of farming, to use the co­ operative farming method and to begin the supplementary business based on farming. The institution will follow the following factors for success. 1) To increase the tendency of self-help & co-operate with supply of sugarcane. 2) Not to delay supply of sugarcane for crushing in the factory, to assist farmers in harvesting & transportation to avoid possible wastage of sugarcane.

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