The Development of the Sugar Industry In
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'«THE DEVELOPMENT OF THE SUGAR INDUSTRY IN NIZAMABAD, ANDHRA PRADESH" By Ayesha Humaira Farooqui. A Thesis submitted for the degree of Doctor of Philosophy in the University of London 1969 ProQuest Number: 10107271 All rights reserved INF0RMATION TO ALL USERS The quality of this reproduction is dependent upon the quality of the copy submitted. In the unlikely event that the author did not send a complete manuscript and there are missing pages, these will be noted. Also, if material had to be removed a note will indicate the deletion. uest. ProQuest 10107271 Published by ProQuest LLC(2016). Copyright of the Dissertation is held by the Author. All rights reserved. This work is protected against unauthorized copying under Title 17, United States Code Microform Edition © ProQuest LLC. ProQuest LLC 789 East Eisenhower Parkway P.Q. Box 1346 Ann Arbor, MI 48106-1346 1 Abstract. This thesis attempts to analyse the conditions of the sugar industry in part of Andhra Pradesh and it is hoped that the results of these studies indirectly show the possibility of improving the efficiency of sugar production in the country. The discussion is divided into seven parts. In the first Chapter, as an introduction, a brief history of Indian sugar Industry has been outlined. The same section further deals with economic factors such as general position of sugar cane area, production and yield, utilisation of sugarcane, world trend of sugar consumption and production, export and India's share in the venture. The gradual rise of the Century sugar industry in the POtly'is discussed and a brief mention of Government programmes to develop the industry through Five Year Plans. A study of the development of the sugar industry in Andhra Pradesh is concentrated into the Second Chapter. Here the discussion goes further to trace the situation prior to the three Plan periods - and subsequent developments - increase in sugarcane acreage, production and yield> condition of the factories and the intensive cane development drives. The field of research narrows down in the Third and Fourth Chapters to the district of Nizamabad in Andhra Pradesh, which is the main subject of this work* The causes of the localisation of the sugar industry in this particular district along with a brief description of the Nizam Sugar Factory and cultivation of sugarcane and price fluctuation have been assessed. In the subsequent parts every endeavour has been made to throw light upon the cultural, economic and social problems, along with the working and localisation, planning and by-products Il of the sugar industry in the district. Though the whole discussion is based on the facts avail able in official and unofficial publications, the conclusions reached in the last Chapter are^interpretations of the existing facts, in which some possible suggestions have been made to avert the adverse forces jeopardising the expansion and growth of this important national industry, and will contribute towards increasing production of the sugar industry and placing it on a sounder footing. Ill Preface • In Indian life and economy sugar occupies an important position. In fact sugarcane is India's sweat gift to the world. In undertaking research on this subject I am fulfilling obligations towards my motherland. Recently, the country experienced what can be desbribed as a sugar crisis. Sugar mills associations published in the columns of the local press to educate public opinion in their favour and to absolve themselves of any responsibility in the crisis and also enlist support of formal opinion. The Government, seeing that all was not well with the sugar industry, and also, indeed with textile and other industries, appointed the Sen Commission to enquire into the state of affairs in the sugar industry. Following the Sen Commission's recommendations Mr. Gundo Rao, a private sector expert, was invited to Chair a Committee which further enquired into the existing inadequa cies. This Committee covered in its scope of enquiry all the interests involved with the sugar industry,, in a systematic State-wise manner. It will not be out of place if we try to see the above descriptions in the light of actual figures of production. The total sugar production in the world in 1965-6 6 'W2v.s , . TMetMC 63.5 milliony\tons ^'ut with main contribution, viz. Cuba h, 555)000, Mexico 2,176,20b, Brazil h,557 )051) U.S.A. 1 ,000,2bh metric tons. In the same year India produced 3 )900,000 toi^ sugar and 280,000 tons khandsari. Further, the States below produced ( A. P. 5 tonnes ( Maliarshtra 1/ gO ,7 8 /f " ( U.p. [ j ,37^i-,S!)S " Hizaraabad's contribution amounts to ^ 6 tonnes. IV Taking the matter from here the Sen Commission remarked A) Exports of sugar should not only be continued but also augumented and efforts should be made to obtain as large a quota as possible. B) The need for reducing the cost of production of sugar in India, in order to improve her comparative position in the world market, is urgent. C) Every effort should be made to ensure proper supply of the required amount of input factors and, at the same time, develop a proper extension agency for the purpose of ensuring healthy and clean cultivation. D) The State Government, sugar factories and cane societies should create the necessary climate for the growers to take to improve methods in their agricultural practices. It is necessary to augment the credit facilities to the cultivator by providing the necessary credit to the co operative banks and instructions in the respective areas. E) Even within the regions where there is greater scope for the development of sugarcane cultivation, there are some districts which need to be given special attention for sugarcane development. Mr. Gundo Kao recommended A) Production of sugarcane for gur manufacture should be planned separately. As far as possible no large scale manufacture of gur and khandsari should be permitted in factory areas. B) The sugarcane growers should be educated to align their interests with those of the factory and the factory in turn should see to it that the interest of the growers are not allowed to suffer. As much direct contact should be established between the two as possible. C) Fluctuations in yield and recovery can to a large extent be minimised by providing adequate irrigation, manuring and sowing the most suitable varieties for the tract, based on soil surveys and varietal trials. Provision of good, healthy seed would also go a long way in improving yield and recovery. D) The Committee recommends the factories should have adequate capacities to enable them to crush the avail able cane in a reasonable duration of season. The most important key to improve and maintain a high level of productivity in sugarcane production is a vigorous and c^namic breeding programme. E) It is necessary to augment the credit facilities to the cultivator by providing the necessary credit to the co operative banks and institutions in the areas. F) The State Governments, sugar factories and cane societies should create the necessary climate for the growers to take to improved methods in their agricultural practices. G) In the context of supplying fresh cane at minimum cost to the factory, development of communications assumes great importance. It will not only help the transport of cane, but of other agricultural products as well. H) Efficiency in production is also dependant on the man behind the machine. If the technical personnel VI engaged in production understand the principles of processing and are as aware of the latest techniques, . much of the time and material lost can be avoided and high efficiency achieved, thus, contributing to reduction in the cost of production. The Committee has observed that the situation obtaining at present in the industry is not entirely satisfactory. I) The price of sugar should be fixed on a sub-regional basis. In the treatise, I have sought to deal with the problems connected with sugar production, transport and marketing with special reference to the State of Andhra Pradesh to which I belong and whose problems and difficulties are symptomatic of the problems of the sugarcane industry all over the country. With a view to making the study more specific and the invest igation more detailed I narrowed down the grounds to the performance evaluation in perspective of a single factory taken as a case study. The Nizam Sugar Factory at Shakkarhager, Bodhan in the Nizamabad district of Andhra Pradesh is both a major industrial undertaking and an old establishment to serve as an illustration of all the aspects of the problems of industry. It has two units,a very large intake, large production, vast acreage, and an elaborate distribution and marketing apparatus involving agro-economic: , socio-economic: and techno-economic problems over a wide area and vast population. Hence, this investigation almost assumes the dimensions of an economic survey of an entire community of people involvedxûth the process of change and development under the stress of modernisation and in the context of the growing requirements of a slowly metamor phosing society of an under-developed country. It is hoped that the observations made in this publication will be found vn useful by all concerned in respect of the sugar industry of Nizamabad, and must, therefore, equally be valid and interesting for other units in the Country. It gives me great pleasure to acknowledge my deep sense of gratitude to Mr. A.B. Mountjoy. Reader in Geography, Bedford College (University of London), for his constant guidance and encouragement and valuable suggestions in the preparation of this thesis. Without his wise and discriminating help it could never have been written.