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10 Chapter 2.Pdf Contents 2.1 BACKGROUND 2.2 REGISTRATION 2.3 OBJECTIVES 2.4 LOCATION AND COMMAND AREA 2.5 MEMBERSHIP 2.6 ADMINISTRATIVE STRUCTURE 2.7 FINANCIAL STRUCTURE 2.8 INCREASE IN MEMBERSHIP AND SHARE CAPITAL 2.9 PERFORMANCE OF THE KARKHANA 2.9.1 Expansion of Crushing Capacity 2.9.2 Sugarcane crushed and production of sugar 2.9.3 Sugar Recovery 2.9.4 Capacity UtiHsation 2.9.5 Duration of Crushing Season 2.9.6 Cane Price Paid 2.10 PERFORMANCE EVAL UA TION FACTORY GATEWAY 27 CHAPTER- II THE RAHURI SAHAKARI SAKHAR KARKHANA LTD. 2.1 BACKGROUND The 1951 Census shows that out of the total population of 88,366 of the Rahuri taluka, agriculture sector has provided the main source of livelihood to as many as 71,186 people or to nearly 81 percent of the population’. The main source of irrigation was wells because very few villages were getting water from the Pravara Right Bank Canal, emerging directly from the Bhandardara Dam. If the farmers were lucky in having well water, could irrigate vegetable gardens, fruit plantations and even small plots of sugarcane. That time, the Rahuri taluka was famous for Sweet lime (Mosambi) gardens. The sugarcane was cultivated only in canal area and mostly in four villages namely, Deolali Pravara, Takalimiya and Kolhar and Rahuri. 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 farmers were at the mercy of private sugar factories located in the Shrirampur and Kopargaon taluka, when gur production was uneconomical. These factories were not paying prompt and fair prices for their sugarcane. The marketing of sweet lime was also with number of malpractices on the parts of traders. I'hey 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 sweet limes. It is said that “next to rain, price changes have been the greatest enemy of the farmers”. Thus, the farmers in Rahuri taluka were helpless. 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 Rahuri taluka. The farmers began to 28 organise themselves because they wanted greater control over marketing than they could get as individual clients ol" gur brokers and secondly they were caught in difficulty due to the private sugar factories which were not prompt and fair in making payment. The success of co-operative experiment at Pravaranagar in the district was also a source of inspiration to them. Under such circumstances, various social leaders like Dr.B.B. lanpure. Anna Patil Kadam, Chandrabhan Dakale, Anantrao Dhawade, Janardhan fekawade. etc. had took lead in creating confidcnce among the farmers and inspired them to organise 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, fhe leaders and farmers were also encouraged by Late. Dr. D.R. Gadgil and Late Padmashri Dr. Vitthalrao Vikhe Patil. 2.2 REGISTRATION The idea of forming a co-operative sugar factory comprising of 43 villages in the Rahuri taluka was first discussed in a meeting of the farmers presided over by Dr. Baburao Bapuji Tanpure at Deolali Pravara in the temple of God Hanuman on 5'*’ May 1954^. The resuh of the meeting was that the farmers jointly sent their application for co-operative sugar factory to the former Government of Bombay. The application was submitted with reference to the First Note dated 12"’ June 1954 issued by the Government of Bombay, asking the public to apply for licenses to set up co-operative sugar factories in the statc^. The total cost of the proposed project was estimated to Rs. 1 crore. It was decided to collect Rs. 10 lakhs from farmers as share capital. An amount of Rs. 10 lakh was proposed to be contributed to the share capital by the state government and Rs. 80 lakh 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. 13.76 lakhs. The government agreed to contribute Rs. 10 lakhs tow'ards the share capital. Ihe Industrial Finance Corporation and the State Co-operative Bank advanced loans worth Rs. 43 lakhs and Rs. 28.24 lakhs 29 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 Rahuri. After procedural formalities, the Bombay Government sanctioned registration under the Bombay Co-operative Act 1925, to the Rahuri Sahakari Sakhar Karkhana Limited on 3'^* November 1954. Thereafter, the Karkhana obtained an industrial licence on 5*’’ January 1955. The Karkhana placed its order on 25^*' September 1956 for machinery having crushing capacity of 1,000 tonnes of cane per day with M/s G.H.H., West Germany. The company had sent its experts to supervise the erection work. The erection work was started in October 1956 and completed in June 1957“*. The Karkhana started the production from the crushing season 1957-58. Thus, the idea of a co-operative sugar factory in Rahuri taluka became a reality within a period of three years from registration. It is the third co-operative sugar factory in Ahmednagar district and fifth in the State. 2.3 OBJECTS The main aims and objectives incorporated in the by-laws of the Karkhana are i) To improve the socio-economic conditions of the agricultural producers, through co-operative processing and marketing their agricultural produce, especially of sugarcane and products obtained therefrom. ii) To undertake such other activities as are incidental and essential for the attainment of above objectives. iii) To undertake all such activities as are conducive to the all-round development and welfare of people residing in the command area of the Karkhana. 2.4 LOCATION AND COMMAND AREA The site of the Karkhana is known "Shrishivajinagar'', It is about 8 Kms. to the north of Rahuri, the taluka head quarter. The Ahmednagar - Manmad Highway No. 10 passes from the Karkhana site. Ihe Pravara Right Bank Canal, which crosses the Karkhana site, has solved the problem of water supply. The campus of the Karkhana site is of 240 acres. Initially there were 43 villages covered under the command area ol' the Karkhana. The number of villages in the command area increased to 78 in 1975- 76. 87 in 1987-88, 93 in 1988-89 and to further 95 villages in 1994-95^ Thus, at present there are 95 villages in the command area of the Karkhana. Of which. 89 villages are from the Rahuri taluka. 5 from the Nagar taluka and 1 from the Shrirampur taluka (Figure 2.1). The command area is within a radius of about thirty-seven kilometers from the Karkhana site. The command area is divided in to 9 zones (Gats). I'he number of villages in each zone are shown in Table 2.1 Table No. 2.1 Catwise number of Villages in the Command Area Gat No. Name of the Zone (Gat) Number of villages 1 Kolhar 10 Belapur 12 3 Deolali Pravara 01 4 1 akalimiya 05 5 Aradgaon 08 6 Manori 13 7 Vambori 20 8 Baragaon Nandur 25 9 Rahuri 01 Total 95 Source - From the ofTicial records of “Share Department” of the Karkhana Fig. 2-1 31 2.5 MEMBERSHIP i’he provisions regarding the membership are contained in the by-laws of the Karkhana. The members are classified into the following four types. i) Producer Members I'his type of membership is restricted to sugarcane cultivator who grow minimum one-half acre sugarcane in the command area of the Karkhana. The producer members are bound to give all the sugarcane grown by them to the Karkhana. It is binding on each producer member to grow sugarcane as per the instructions of the Karkhana. The by-laws empower the Board to issue directives to the members on the general agricultural activity. The producer member must hold at least one share of Rs. 2000 (initial face value Rs. 1000). fhese members are not allowed to buy more than 25 shares. ii) Ordinary Members This type of membership is open to the co-operative societies working in the command area of the Karkhana. T’he ordinary member must hold at least one share of Rs. 2,000 (initial face value Rs. 1,000) iii) Nominal Members - This type of membership is open to individuals, firms, companies or other institutions, w'hich deal with the Karkhana. These members are required to pay only a nominal entrance fee of Rs. Five. These members have no voting right and they can not participate in the management of the Karkhana. iv) Beneficiary Members - This type of membership is open to individuals benefitted by the development schemes undertaken by the Karkhana. These members have no right and they can not participate in the management of the Karkhana. Of these, the producer members are the most important because they supply sugarcane, the raw material to the Karkhana. They also enjoy the maximum benefit of the Karkhana, as the main object of the Karkhana is to improve the socio-economic conditions of the producer members.
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