Study of socio-economic impact of cooperative sugar factories.

1.1 In March 1981, the National Cooperative Development Corporation requested Council for Social Development to conduct an in-depth enquiry into the socio-econe aspects of the working of cooperative sugar factories in the three States of Andhra Prade Maharashtra and Uttar Pradesh. The terms of reference were as follows:

(1) To assess whether the functioning of the sugar factories has been such that econom interests of the farmers,specially the small farmers, have been furthered; (i) to assess the socio-economic impact of the functioning of the cooperative sugar

factories;

(iii) to identify the areas of integrated development including socio-economic services and arrangements of funds for financing these; (iv) to assess whether the democratic management of these sugar cooperatives has blended with the professional management for deriving the optimum socio-economic benefits

for the members; and

(v) to suggest further measures at the level of National Cooperative Development

Corporation and the States for the promotion and strengthening of cooperative

sugar factories as part of the programme of integrated cooperative development for the benefit of the rural areas with accent on the small farmers. While the study itself was entrusted to the Council for Social Development as a 12 Research Organization it was agreed that it should be conducted under the general guidance of a Steering Committee headed Dr. B. Venkatappiah, the Executive Chairman of the Council The other members were Dr. V. Subramanian, (previously Executive Chairman, State Planning Board and now Finance Minister, Maharashtra Government). Shri K. Sundararajulu, Chief Director, (Cooperation), Department of Agriculture & Cooperation, Ministry of Agriculture, Government of India and Shri R.D. Bedi, the Director of this Project, who served as the Member Secretary of the Steering Committee. They have kindly agreed to make their advice and guidance available in a purely honorary and personal capacity, without any commitment on behalf of the Government/Department to which they belong. The Steering Committee has held regular meetings to guide the investigation. The actual work of survey was undertaken by a Project Team headed by the Project Director. 1.3 Pollowing an empirical model, the study was based both on secondary sources of The Report is presented in two parts. To advert first to Part II, this comprises indi vidual reports on each of the 14 factories. It has been sought to maintain uniformity in the design of presentation, while at the same time highlighting the special features of each factory. The financial and operational aspects of the performance of the factories have been set out in that order. Each report includes an assessment of the economic impact on the of the operations of their factory. In particular, special mention is made of such policies of the factory which have a bearing on small farmers. Changes, if any, in the economic condition of agricultural labour and factory workers have also been described. Reference is also made to organisational developments, for example, establishment of educa tional institutions or cooperative infrastructure. Lastly, the reports deal with the democratic and professional features of the management of the mills.

1.10 Part I is the general report. The chapters in this part have been so arranged as to first set out in background and then to serially cover the terms of reference. The first chapter is introductory. The second and third give a description of the progress in sugarcane cultivation, the growth of the sugar industry and the progress made by the sugar mills in the cooperative sector. The fourth and fifth chapters analyse the economic benefits derived by the farmers, especially the small farmers, from sugar cooperatives. Suggested lines of action have also been indicated in these chapters. The sixth chapter contains an assessment of the socio-economic impact of sugar cooperatives in their areas of operation. pertaining to the integrated development of the areas have been set out in chapter 11. Recommendations sabject of democratic control and professional management is taken up in the eighth chapter The and suggestions are put forward in connection with this theme. The last chapter contains the summary of the Report.