Chapter 2 HUTATMA AND KRISHNA SUGAR CO-OPERATIVES

Transcription

1 Chapter 2 HUTATMA AND KRISHNA SUGAR CO-OPERATIVES 2.1 INTRODUCTION: To make a comparative study, two factories viz. Krishna Co-op Sugar Factory, Rethare Budruk Dist. Satara and Hutatma Kisan Ahir Co-op Sugar Factory, Watva Dist. Sangli have been selected. The cooperative sector is a different type of economic activity. The cooperative movement is expected to play a significant role in the process of social justice. Unfortunately these cooperative sugar factories in the Western Maharashtra are not playing any important role in this respect to the basic needs and demands of the cane cutters, with exception of one factory. Nearly for the last half century the cooperative sugar industry have been established the important place in Maharashtra. This small spell of their existence denotes the strengthening entry of the evil elements in this field. No factory in Maharashtra has humanitarian view towards the large group of cane cutters except Hutatma Kisan Ahir cooperative Sugar Factory, Walwa, Dist. Sangli. The researcher has selected Krisnna Cooperative Sugar Factory, Rethre Budruk Dist. Satara for the comparative study. Before going to have the comparative study of these two factories, it is necessary to have the background knowledge of different sugar industry in Maharashtra and India as well.

2 HISTORICAL BACKGROUND OF THE SUGAR INDUSTRY: There are evidences that Indians had the knowledge of sugar and sugar cane even before 400 BC.01 In the years between 500BC and 1000AD the ancient Hindu holy book Atharvaveda reflects these references. 02 in the twentieth century Lord Curson founded the sugar cane research centre at Pusa.03 The first sugar industry of India has an establishment in Sukhsagar in 1784 on private basis, followed by the foundation of the second one of the same type in 1791 in Bihar by Mr. L.T. Pearson. 04 The government policy to give protection for the Indian industry in 1932 gave good nourishment to the development of the sugar industry in India. Consequently the year is significant for the foundation of 139 industry in India.05 The cooperative policy in the sugar industry in India was used in 1933 for the first time in India. In 1933 four sugar industry were established on cooperative basis, one in Uttar Pradesh and three in Andhra Pradesh including the factory in Etticoppaka that is still running successfully. 06 Unfortunately none of these industry could create its impressions to expand the influence and utility of the cooperative sector. The real beginning and development of the cooperation in the sugar industry has begun with the formation of a cooperative sugar factory in Pravaranagar, Maharashtra. The credit of this initiation goes to senior economist Mr. Dhananjayrao Gadgil, Mr. Vitthalrav Vikhe-Patil and Mr. Vaikunthbhai Mehta. These people deserve the

3 38 credit of the foundation of successful cooperative sugar movement in Maharashtra. Table 2.1 Development Of Sugar Industry In Maharashtra Nature of factory Year 1973 Year Private Sector Co-op. Sector Total Development of Co-operative Sugar Factory in Maharashtra Analysis of co-operative sugar factories in Maharashtra. The year 1890, is significant in the history of Maharashtra as a year of establishment of the first private sugar factory in Maharashtra. The factory started its production in In 1930 follows the foundation of the second private sugar factory at Walchandnagar. Till 1945, the government's policy of protection to the sugar industry resulted into the addition of 19 more industry.09 At present in India there are nearly 2000 agricultural processing centres. Among them the development of cooperative centres is amazing. Every year 120 cooperative industry in Maharashtra produce almost 8.5 million tones of sugar. These factories are having assistance from National Co-operative Sugar Factory Mahasangh. It provides them technology and heavy machinery if required.11

4 39 Table 2.2 Comparison Of Sugar Factories In India And In Maharashtra 10 ITEMS India Maharashtra India Maharashtra No. of Sugar factories Capital (Rs. in Crores) Employment Production of Sugar (tonnes) Cost of production (in Lakhs) The National Co-op. Sugar Factory Mahasangh was founded in It has its head quarter in Delhi. The Mahasangh employed number of technicians and engineers. They do the evaluation and assessment of the factory.12 After looking at the cooperative movement in Maharashtra and India, the researcher would like to give the information about the factories which have been selected for research topic.

5 40 Table 2.3 Analysis of different Sugar factories from Maharashtra Productive Factories Productive Factories 1] Cooperative 104 1] Cooperative 94 2] Private 03 2] Private 03 Total 107 Total 97 Factories getting high recoveries Factories getting high 1] Hutatma recoveries 2] Warana ] Hutatma ] Krishna ] Warana ] Kumbhi Factories producing sugar in bulk Factories producing sugar in amount (in Bags) bulk amount (in Bags) 1] Krishna ] Krishna ] Vasantdada ] Vasantdada ] Datta ] Warana Factories having high crushing of Factories having high crushing sugar cane of sugar cane 1] Vasantdada ] Krishna ] Krishna ] Vasantdada ] Akaluj ] Panchaganga

6 KRISHNA CO-OP. SUGAR FACTORY LTD. RETHARE: Krishna co-op sugar factory was established on 28th July 1955 at Rethre (B) Dist Satara. Mr. Yashwantrao Mohite is a founder and an anchorperson of this factory. Yashwantrao Mohite is always a leading personality, in the politics of Maharashtra for long time He held the responsibility of cooperative and other portfolios in the cabinet of Maharashtra government. During this period Mr. Jayvantrao Bhosale, brother (who got Bhosale Surname due to adoption) of Mr. Mohite was given the administrative responsibility of the factory. Till 1978, Mr. Yashwantrao Mohite was ahead in the politics of Maharashtra. He was elected as a member of Maharashtra Assembly from Karad constituency. He then became the Member of Parliament of Karad constituency in This period also brought a deterioration of his political career. His successor of Karad assembly constituency Mr. Vilasrao Patil lessoned the influence of Mr. Mohite in Karad region. This resulted into the deprivation of Mr. Mohite from Vidhan Sabha and Lok Sabha as well. 2.5 STRUGGLE IN KRISHNA COOPERATIVE SUGAR FACTORY: In Mr. Mohite is thrown out of politics. He then started to get involved in local politics and administration of the factory. Mr. Mohite observed that Mr. Jaywantrao Bhosale was indulged in corruption. Mr. Mohite found that during his absence, Mr. Jaywantrao Bhosale had deviate some A

7 42 amount from the sugar cane bill towards Mr. Bhosale s Krishna Charitable Trust. He initially tried to warn Mr. Bhosale but it was all in vein. Mr. Mohite then created public awareness against the corruption. Mr. Bhosale s denial to open membership of the factory to sugarcane growers, the corruption in the factory and the anti-corruption movement of Mr. Mohite brought the change of power in factory. The panel of Mr. Yashwantrao Mohite was elected in Thus ended the rein of Mr. Bhosale. 2.6 DEVELOPMENT OF KRISHNA CO-OP SUGAR FACTORY: Mr. Yashwantrao Mohite established this factory in Nearly about 15 million Rupees were collected at the initial stage of foundation. At first daily crushing capacity was of 1250 MT The capital investment of the share holders was of 2 million Rupees, added by the government hypothication of another 2 million Rupees along with the loan of 11 million Rupees from different financial agencies. In due course the factory increased its crushing capacity up to 5000 MT. per day. In 1995 each share of the factory was of Rs 2000 and the total amount of share capital was more than 90.6 million Rupees. During the years the factory collected the deposits of crores of Rupees. The deposits were fixed and used to fulfill the temporary needs if any. More deposits sometimes can help to reduce the amount of external loans (i.e. from bank) and the amount of the interest can be saved.

8 43 At the end of the year1994 the factory did not have debt of any financial institution. The factory spent Rs million for pre-seasonal expenditure including 16.4 million rupees paid to the cane cutters and transport workers. Sixteen crore rupees (400 Rupee per tone) were paid in advance for the crushed canes. The half-monthly -amount of rupees 29.4 crores was paid. The factory also had a capital expenditure of 12.9 million rupees along with the amount of Rs. 6,7 million spent on D.I.E.G. Project. The factory granted bonus to its workers of Rs million. 3.2 million rupees were donated to the earthquake relief fund. Thus the factory is having good and strong financial position CANE CRUSHING AND THE RATE OF SUGAR CANE IN KRISHNA SUGAR FACTORY14: The crushing period of Krishna sugar factory in the year was of 96 days, this period went on increasing and in it was about 191 days. In cane crushing season metric tones of sugar cane was crushed and quintal of sugar was produced,. In cane crushing season metric tones of sugar cane was crushed and quintal of sugar was produced, the recovery of sugar was 12.11% and the rate of sugar cane was 736 Rs per tone. In the period , the crushing period of Krishna was the highest in and it for 242 days and lowest in the year of 96 days. The cane crushing was the highest in of metric tones, the

9 44 production of sugar was the highest in of quintal, the recovery of sugar was the highest during of 13.34% and the rate for sugar cane was highest in of 736 Rs. per tone. In the sugar cane cutting and transporting expenses was Rs. / tone. 2.8 BYPRODUCTS OF SUGAR INDUSTRY AND OTHER PROJECTS TAKEN BY KRISHNA: The byproducts produced by Krishna and the other projects undertaken by Krishna benefiting the shareholders of Krishna are explained over here.15 A) Programme For Development Of Sugar Cane: With consignments of the shareholders for deduction of amount of Rs. 4 per tons from non-shareholders and 8 Rs. per tons from shareholder as an area development fund, Krishna sugar factory tried to develop the production of the sugar cane in the factory region. Under the said programme, Krishna factory provided better seeds of sugar cane, pesticides, etc. to the shareholders by taking guidance from Padegaon and Kolhapur Sugarcane Research Centers. B) Establishment Of Different Departments: The department for fertilizers, Department for Bulldozers and leveling of land, Chemical Department etc. are departments newly formed by the factory to develop the factory work area for better production of sugar cane and the quality of sugar.

10 45 C) Kharland Region Development: Due to excess use of water some land under sugar cane cultivation has became khar land. In order to develop this land factory undertook the programme to drain the excess amount of water by using excavator, which costs about 14 lakhs of rupees. D) Acetone Project: This project was not giving any economical benefits or even it was not meeting the expenses on the project up to From 1988 onwards, by increasing the production capacity of this project to 15 metric tones per day factory has gained of economic benefits. E) Distillery Project: The production capacity of this project is 75,000 liters/day, which produced about 1,11,45,800 liters of Alcohol, 18,89,300 liters of country wine and 72,400 liters of rich wine per year. In order to avoid the pollution of distillery project, factory has started a new project of production of methane gas. F) Lift Irrigation Schemes: The irrigation schemes under the factory area, which is mainly on the banks of Krishna and Koyana rivers; they are 16 in number. Out of these 16 irrigation schemes, factory has given promoted 10 and it owns 6 schemes. G) Other Important Projects: The other important schemes implemented by the sugar factory are I. The centers for selling sugar to the shareholders at the rate concessional rate at the convenient places for shareholders.

11 46 II. Veterinary centers. III. Advisory programmes for gaining of extra recovery of sugar. IV. Tree plantation and V. Repairs of roads on the factory site and lightening on roads. 2.9 THE PROJECTS UNDER CONSIDERATION: The projects under of factory management are 16 a) D.I.E.G./V.S.I. project: By this project the factory wants to produce the electric power and potash from the wastewater. By this the pollution in the factory area will come under control. For this project the factory is applying for financial assistance to I.D.B.I. b) Continuous Fermentation Process: this project increases the production of amount of alcohol. This project will require an investment of Rs. 1,85,00,000/-. c) Co-generation project: By this project the factory will generate electric power from the bagas. For this project the American based Renova Unsaldo company is going to work with the factory by investing Rs. 7 to 8 corers. d) Other Bi-products: Juice of sugar cane of high quality, production of fiber sheets, production of refined sugar, liquid sugar, health sugar, different kinds of syrups, wax, coal, Fodder, etc.

12 KRISHNA SUGAR FACTORY AND CANE CUTTERS: The area of operation of Krishna Co-operative Sugar Factory covers Karad, Walawa and Khanapur Talukas. It is more than other factory. Ultimately, the percentage of Gadi center workers and Doki-center workers is very high.17 Generally, the Gadi center workers work within the area of 8 to 9 kms. of the factory as there are no options to the trucks and tractors if the area is beyond it. It is seen that the percentage of the cane cutters is very high compared to that of Hutatma. It is seen that Krishna has not provided any facility for the cane-cutters. The researcher has observed that the management of Krishna shows more interested to arrange the health programmes for the benefit of shareholders and other local people, and it is reluctant towards the cane cutters. The researcher observed that Krishna arranges the inoculation of cholera and other contagious diseases nominally in haste CANE CUTTERS WORKING FOR KRISHNA: The exact number of cane cutters working for Krishna is not available with the management of Krishna as the management of Krishna use to keep the records of mukadamas with them. The group of cane cutters (Toli) is having the different number of cane cutters so the group size is not fixed. By considering the number of bullock carts, trucks, trollies and the number of

13 48 groups of cane cutters it is possible to guess about the number of cane cutters working for Krishna. In the number of trucks working for Krishna was 43, the number of tractors was 251, depending on this number it can be guessed that the number of Doki center workers was about The bullock carts working were 1,862, which infer that the number of cane cutters of category Tayli center was about 5,500. Consolidating this the total number of cane cutters working for Krishna in the crushing season of was up to 13, HUTATMA KISAN AHIR SAHAKARI SAKHAR KARKHANA: Hutatma though it is one of the recent factories, it deserves the special place in the co-operative history of Maharashtra. Mr. Nagnath Naikwadi, the founder and his mother, Smt. Laxmibai Naikwadi, have respect in the Walva region for their contribution in the Indian Freedom Struggle. Both of them have important contribution in the formation of this factory. Smt. Laxmibai gave leadership to the freedom movement of India in pre-independence period. She had an active role in the then Prati-Sarkar movement led by Krantisinha Nana Patil, and similarly her son Nagnathanna has also contributed in the movement. The Prati-Sarkar movement is one of the golden pages of the Indian history. The movement actively resisted against the British Raj. Shri Kisan Ahir and Shri Nanak Singh were among those members of the movement and collogues of Mr. Naikwadi, who lost their life while fighting against British police on 25th Feb It gave a deep

14 49 sensitive shock to Naikwadi and this led him to generate Hutatma movement after Independence. The motto of this movement was awakening, restructuring and struggle. Mr. Naikwadi is born in 1922 and since his eighteenth year he plunged into the freedom movement. People always appreciated the work of their Kranti Veer". Mr. Naikwadi has successfully struggled for the movement for the victims of Koyana and Warana dam, social education, conferences for sugar factory workers, Pani Parishad social conference, etc. Thus, he has contributed a lot for the society. The sugar factory is the representative project of Hutatma movement at the same time it is a memorial of martyr, Kisan Ahir. The factory is famous for its qualitative product. Mr. Naikwadi attended the inauguration of the factory on 29th January Afterwords he has never entered again into the factory premises at the same time he never interfered the factory administration. This is the good example for the some leaders in the co- operative movement, who look towards self interest only DEVELOPMENT OF HUTATMA: Smt. Laxmibai Naikawadi contributed to great extent in the foundation stone of the factory. The proposed site of this factory was in the village of Walawa, 6Km. away from an already established factory Walava led by Mr. Rajarambapu Patil. It was not possible to get No-Objection Certificate from Walva factory, as Mr. Rajarambapu Patil was the Cabinet Minister of Maharastra Govt. Smt. Laxmibai went to Sakharale and strongly condemned

15 50 the tendency of Mr. Patil. She actually stopped the car of Mr. Patil. She made him to sign on the certificate. R. B. Patil19 has published a research paper on this factory, which presents more information about this factory. The first meeting of the sugar cane growers in this region was held on the 4th Jan1978. An application for the permission of the factory submitted on the 19tt April1978. They had to wait for three years up to March, 1981 to get approval letter from the central govt. The factory registered under Co-op. Act on 29th June The observance of the factory site was done on August, 1981 and finally it was approved in November Bakav-Wulf India Ltd., Pune accepted to provide the machinery with an agreement to the factory on 22nd March F.C. I. and State Co-op. Bank granted their credit letter in Oct State Co-op. Bank granted middle term loan on 3rd Nov., The workers began working on the proposed factory site on Jan In March 1984, the factory undertook its crushing season of test from Jan. to March The Central Govt, gave approval for the extension of the factory in Oct DEVELOPMENT OF HUTATMA: The area of this factory is very limited as compared to that of Krishna. In the year the factory produced 4,26,048 bags of sugar and gave Rs. 728/- rate per tone for the sugarcane. The factory is developing not only physically

16 51 but also with development in all social aspects. Yet the factory had not entered in the production of other bi-products PROGRAMMES AND PROJECTS UNDERTAKEN BY FACTORY: The important schemes implemented by the sugar factory are20 I. The irrigation schemes for share holders of the factory. II. Repairs of roads in the factory area of operation. III. Advisory programmes to gain extra recovery of sugar. IV. Scheme to provide better facilities to cane cutters. V. Special subsidies for Gobar gas plants., etc. VI. Establishment of 24 Balwadi centres in the area of operation. VII. Financial assistance for unaided educational institutions from the area of operation of Hutatma. VIII. Supply of Sugarcane seeds to the shareholders IRRIGATION SCHEMES PROMOTED BY HUTATMA: The area of this factory is very limited and the sugar cane available for the factory is not sufficient. To increase the production of the sugarcane, factory undertook 19 different irrigation schemes out of which 13 schemes are working and 6 are under different stages. The schemes and their areas are: 1. Shri Gajanan Pani Puravata Yojana, Nave Khed. (125 acres)

17 52 2. Shri Masoba Lift Irrigation Scheme, Walave 3. Vasant Jal Sinchan Seva Sanstha, Nagthane No.1 4. Vasant Jal Sinchan Seva Sanstha, Nagthane No.2 5. E.T.P. Irrigation Scheme, Walave 6. Shri Bhimbaba P.P. Yojana, Punadi (for B.C.) 7. Sidharath P.P. Yojana, Nagthane (for B.C.) 8. Datta P.P. Yojana, Nave Khed 9. Dhanai P.P. Yojana, Walave 10. Bahubali P.P. Yojana, Walave 11. Nageshwar P.P. Yojana, Nagthane No Gajanan P.P. Yojana, Nagthane 13. Rajendra P.P. Yojana, Punadi Total area under these irrigation schemes: (070 acres) (050 acres) (150 acres) (300 acres) (015 acres) (040 acres) (050 acres) (132 acres) (093 acres) (105 acres) (049 acres) (024 acres) 1203 acres. Schemes of irrigation underdevelopment are 1. Kisan P.P. Society, Padaval wadi 2. Vasant P.P. Yojana, Gotkhindi 3. Gatadwadi lift irrigation scheme, Gatadwadi 4. Vishnu Bhirav Sahakari Jal Sinchan, Nagrale 5. Dr. Ambedkar Sahakari Jal Sinchan, Nagrale 6. Kisan P.P. Yojana, Walava (802 acres) (2000 acres) (880 acres) (135 acres) (020 acres) (600 acres) 2.17 HUTATMA FACTORY AND CANE CUTTERS: Hutatma factory has set an ideal example before other industry, this factory

18 53 works with social sense. The different schemes for sugar cane cutters are 1. The canteen of the factory provides sufficient food for cane cutters at the cost of Rs. 21- only. 2. Every member of the family of cane cutter receives sweaters, mufflers from factory in order to have protection from cold. 3. A liter of milk for a family consisting of a child below one and half year. 4. Rs. 200 for pregnant woman cane cutter for delivery purpose. 5. About 450 cottages for cane cutters, etc CANE CUTTERS WORKING FOR HUTATMA: In the number of trucks and tractors was 100, depending on this number it can be guessed that the number of Doki center workers was about 2,400. The bullock carts working were 900 in number, which infer that the number of cane cutters of category Tayli center was about 2,700. Consolidating this the total number of cane cutters working for Hutatma in the crushing season of was up to 5, COMPARATIVE VIEW OF DEVELOPMENTS OF KRISHNA AND HUTATMA: The Table 2.5 reflects the comparative developments of Krishna and Hutatma sugar co-operatives. 1

19 54 Table 2.5 Developments of Krishna and Hutatma Krishna21 Hutatma22 No Items Number of shareholders Area of operation (villages) No. of villages supplying sugarcane (other than operation area) 4 Crushing capacity / day Crushing season (days) Total Cane Crushing(000, tones) Production of sugar (000, Q.) Recovery of sugar Recovery of molasses Area of cane cutting (hectors) Rate of sugar cane /tonn Deductions / tonn in Rs Recovery of Bank loan of members (in Lakhs) 14 Clearance of loans of factory (in Lakhs) NA 15 Deposits by members Cane cutting and trans-port expenses(per tonn)

20 WORK AREA OF KRISHNA AND A'"'- HUTATMA index: : A1 MORK ARL4 OF KRISHNA ') R vc A At A OF HOTATfAA SCAKE * K1L0M T B

21 CANE CUTTERS, KRISHNA AND HUTATMA: The Krishna factory is well established factory having sound economic condition as the factory is having large area of operation, the production of sugar is on large scale, the by-products produced by the factory are more in number as compared to Hutatma factory. Shri Yashwantrao Mohite and Shri Naganathanna Naikwadi the founder members of Krishna and Hutatma respectively are well known persons in the field of co-operative movement in Maharashtra and are known as eminent social activists. It seems that Shri Nagananthanna has implemented these qualities in Hutatma factory in respect of sugar cane cutters, which is not observed in Krishna.

22 REFERENCES: 1. Noel Deer, 1949 History of Sugar Vol. I, p TupeS.D., 1992 Sugar Co-operatives and rural change, p Donald Shay, 1928 The life of lord Curzon Vol II, p Noel Deer, Op. Cit. p Tupe S.D. Op.Cit. p Inamdar N.R.,1965 Government and Co-operative sugar factories, p TupeS.D. Op.Cit. p WabaleY.S., 1995 Antim Usa Galit, Sakhar Utpadan Utara Sankhiki Mahiti p Bapat M.G., Economic development of Ahamadnagar District p Tupe S.D. Op. Cit. p Dubhashi P.R.,1993 Perestroika in co-operation and other essays, p Memoria C.B. and Saxena R.D. 1973, Co-operation in India p Mohite Indrajit and others, 1993, Krishna ek abhyas, p

23 Ghorpade S.B., 1994, 37th Varshika Ahawal of Krishna factory", p Ghorpade S B., 1993, 36th Varshika Ahawal of Krishna factory, p Mohite Indrajit and others Op.Cit., p Patil P.G., 1990 A Sociological Study Of Sugar Cane Cutters From Karad Taluka" Kolhapur, M. Phil. Dissertation (Unpublished), Shivaji University, Kolhapur 18. Hanje R.B.,1991 Hutatma Kisan Ahir Sahakari Sakhar Karkhana, Walawe cha vishishta abhyas" Kolhapur, M. Phil. Dissertation (Unpublished), Shivaji University, Kolhapur, p Patil R. B., 1992 Sugar Co-operatives and Rural Development some emerging issues V.B. Bhatt (Ed.) p Gade S.G., th varshika ahawal of Hutatma Factory, p Ghorpade S.B., Op. Cit., p Gade S.G. Op. Cit., p