31

Chapter – 2

Review of related literature

64

CHAPTER – 2

INDEX

Chapter

No.

Description Page

No.

2.1 Expiation of Review of related literature: 31

2.2 Identifying related literature

32

2.3 Locating the sources of information – library 32

2.4 Reference materials 32

2.5 Research periodicals and Journals 33

2.6 Synopsis 34

2.7 Abstracts 35

2.8 Theses and Dissertations 35

2.9 Government Documents 36

2.10 Monographs 36

2.11 Internet 36

2.12 Bibliographies and Directories 36

2.13 Reference books 36

2.14 Organizing related materials 36

2.15 Beginning of co-operative 36

2.16 Background of co-operation 37

2.17 Sugar cooperatives in the liberalized economy 38

2.18 Cooperatives in new economic environment of

sugar factories:

40

65

Chapter

No.

Description Page

No.

2.19 Brief history and development of sugar industry 40

2.20 Sugar mills in Gujarat 44

2.21 Gujarat sugar industry 45

2.22 Sugar factory list in Gujarat 45

2.23 Map of sugar factory in Gujarat 48

2.24 Gujarat state federation of co-op. sugar factories

Ltd.

49

2.25 Area of sugarcane and production 50

2.26 Net sugar and molasses produces, recovery of

sugar & average final molasses % cane of Gujarat

state federation of co-op. sugar factories ltd.

51

2.27 Burnt cane month-wise percentage for season

2009-2010 of Gujarat state federation of co-op.

sugar factories ltd.

52

2.28 Details of milling bagasse and added water %

cane of Gujarat state federation of co-op. sugar

factories ltd

53

2.29 Technical performance of Gujarat state federation

of co-op. sugar factories ltd.

54

2.30 Bench mark of Gujarat state federation of co-op.

sugar factories ltd

55

2.31 Season wise important date from 1995-96 to

2009-10 of Gujarat state federation of co-op.

sugar factories ltd

56

2.32 Functions of directorate of sugar-Gujarat 57

2.33 Growth of sugar industry in India 58

66

Chapter

No.

Description Page

No.

2.34 Picture of sugar industries in India 59

2.35 Profile of Indian sugar Industry 60

2.36 Sugar industries in India 61

2.37 Sugar production in India 61

2.38 Financial Data 61

2.39 History and growth of Indian sugar industry 62

2.40 Sugar consumption in India 62

2.41 Supply of sugarcane in India 63

2.42 Sugar cane (regulation of supply & purchase) act,

1953

63

2.43 Genesis of sugarcane and sugar in India 63

2.44 Picture of sugar industries in world 64

2.45 International trade of Sugar 65

2.46 Sugar exports from India 66

2.47 Import of sugar by India 66

2.48 Types of Sugar 67

2.49 Sugar Processing 69

31

2.1 EXPIATION OF REVIEW OF RELATED

LITERATURE:

Research is based mainly on review of relevant literature once a

topic has been decided upon it is essential to review all relevant material

connected with the topic. In fact review of literature continues throughout

the duration of research project work. Since a research report either a

dissertation or a theses, is supposed to be study in depth aiming

contribution to knowledge a care full check should be made that the

proposed study has not previously been carried out completely new and

original problems are rare however a previous study should not exactly

has replicated unless the techniques used has been facility or the findings

and conclusions doubtful or unless some new sources of information has

been discovered to shed new light on the problem if is necessary related

to previous research studies. In some subject areas it is important to

locate the problem within a theoretical frame work and in such case the

underlying theory needs to be reviewed as well.

Thus, Review of related literature is an aspect of on the part of a

researcher. The researches which have been done in the past help the

researcher in many directions like locating, studying and evaluating

reports of the past researches, study of published and unpublished

articles, encyclopedia, abstracts, journals,, periodicals, magazines and

books of the related area. Through these materials the researcher gets

benefits regarding his area of study. So review of related literature can

never be kept isolation.

32

2.2 IDENTIFYING RELATED LITERATURE

The researcher first identifies the literature, which is to be read and

evaluated. For this purpose he relates his area of research with researches

done earlier. The identification of related literature can be made through

the skillful use of various sources of information available. So the

investigator must know about the following points.

SOURCES OF INFORMATION ARE AS UNDER

1. Primary Sources of information

2. Secondary Sources of information

(i) Direct Sources

(ii) Indirect sources

2.3 LOCATING THE SOURCES OF INFORMATION –

LIBRARY

The Researcher has visited Many College Libraries, Saurashtra

University Library, Gujarat University Library, Bhavnagar University

Library and Collected Lot-of Information regarding his Ph.d. Subject.

Than he has put all these information related chapters.

2.4 REFERENCE MATERIALS

I. Exact Quotation

II. Paraphrase

III. Summary

IV. Evaluation

33

Above these 4 points the researcher has made exact questions for

related questionnaire to collect the answers from the subject. Than he has

made related Paraphrase in his thesis at proper places. Thus he has

summarized exact quotations and paraphrase and has evaluated on his

own look as per his Ph.d. Subject.

2.5 RESEARCH PERIODICALS AND JOURNALS

The researcher has used mainly Periodicals and Journals about Co-

operative Societies and Sugar Factories. These all literature has taken

from the world, India, and Gujarat Region.

1. Cooperative Sugar Press News, National Federation of Co-

operative Sugar Factories Ltd. weekly publication for the week of

Jan.27 – Feb. 02, 2011 (Volume – 41)

2. Gujarat state federation of co-op. Sugar factories ltd. "Sardar

Sahakari Khand Bhavan", Plot No. 274, Sector-16, 'GH' Road,

Gandhinagar – 382016

3. 50th Annual Report Year 2009-10 of Gujarat State Co-operative

Sugar Udhyog Sangh Ltd.

4. Analysis – The Quarterly Journal of Research & Readings in

Economics, Volume 35 No.4 October – December 2010. Published

by : Vishleshan Trust

5. Arth Sanklan – Leading Gujarati Magazine for Economice and

Commerce , No. 487, Published by Arth Sanklan Public Charitable

Trust.

34

2.6 SYNOPSIS

Synopsis means the main points of the research have been

expressed before the final report has submitted. The researcher shows in

the synopsis the problem of the study, area of the study, references related

the study here. The sum examples of the synopsis are as under:

1. Co-operative Banking System: With Special Reference to

Junagadh District, Prof.: Praful B. Kanjiya, Economic Department,

Shri Patel Kelavni Mandal College of Technology, Junagadh.

―Shaurashtra University , Rajkot – 2006‖

2. Economic And Social Effect on Beneficiaries of Advance Co-

operative Societies, A synopsis of the Thesis to be submitted to

Saurashtra University, Rajkot for the Degree of Doctor of

Philosophy in Economics Under the faculty of Commerce by

Shweta Bharatbhai Ajmera, Savarkundla in 2004.

3. ―Role of No economic factors (Social & Cultural) in Rural

Economic Development ―(Related to Bhavnagar District)

Researcher: Shri Harjibhai Dudhat – M.A., M.Ed. at Lok Bharti,

Lok Seva, Mahavidhyalaya, Sanosara. In June - 2007

4. Analysis of efficiency of Co-operative Banks Established in

Surendranagar District‖ A Synopsis of the Thesis to be submitted

to Saurashtra University, Rajkot. For the Degree of Doctor of

Philosophy in Economics. Under the Faculty of Arts By Mrs.

Sadhnaba R. Gohil Lecturer & Head Economics Shree Bahauddin

Arts College, Junagadh. In 2008

5. ―Impact of Small Irrigation on Agriculture Production, Income

And Employment : A study in the context of Rajkot and Jamnagar

35

District of Saurashtra Region.‖ Researcher: Pro. Ramila H. Virani,

Shri Joshipura Arts & Commerce College, Junagadh. Saurashtra

University, Rajkot – 2008.

6. ―Problems and Prospects of Agrarian Economy of Saurashtra

Region‖

Researcher Economic Professor Ram K. Varotaria, at Shri U.N.

Mehta Arts College Morbi in 2007.

2.7 ABSTRACTS

I. Indian Education Abstract

II. Education Digest

III. Educational Abstract

IV. Psychological Abstract

From Above Abstract The Researcher has Studies in related his

Ph.d. Subject and has explained not only co-operative societies, Sugar

Factories but also to Guide the education and Educational Institution with

the background of Psychological aspects, so he wants to inspire the

farmers in their farming. He has concentrate as per our Ph.d. Subject on

farming of sugar-cane and products of Sugar cane, Why Selling the sugar-

cane to the Sugar Factories with proper reasons.

2.8 THESES AND DISSERTATIONS:

The researcher has always expressed all his views about related

Ph.d. subject with so many thesis and Dissertations. He has studied many

theses and dissertation from various university libraries. He has discussed

36

with Number of his friends who have got the Ph.d. Degree in Economic

Fields related his research subject.

2.9 GOVERNMENT DOCUMENTS

2.10 MONOGRAPHS

2.11 INTERNET

2.12 BIBLIOGRAPHIES AND DIRECTORIES

2.13 REFERENCE BOOKS

2.14 ORGANIZING RELATED MATERIALS

I. Recording Reference Information

II. Recording Content of Reference

Above 2.8 to 2.13 points are very useful the researcher. He gets

most important and valuables standard information‘s for his research

here. These points are the very much supported in his problem, reference,

area and etc. which are most necessary for the base. Here the researcher

wants to discuss the previous explanation about the word ―co-operative‖

as follow:

2.15 BEGINNING OF CO-OPERATIVE:

The cooperative movement began in Europe in the 19th century,

primarily in Britain and France, although The Shore Porters Society

claims to be one of the world's first cooperatives, being established in

Aberdeen in 1498 (although it has since demutualized to become a

private partnership). The industrial revolution and the increasing

37

mechanization of the economy transformed society and threatened the

livelihoods of many workers. The concurrent labor and social movements

and the issues they attempted to address describe the climate at the time.

The first consumer cooperative may have been founded on March

14, 1761, in a barely furnished cottage in Fenwick, East Ayrshire, when

local weavers manhandled a sack of oatmeal into John Walker's

whitewashed front room and began selling the contents at a discount,

forming the Fenwick Weavers' Society.

In the decades that followed, several cooperatives or cooperative

societies formed including Lennoxtown Friendly Victualling Society,

founded in 1812.

By 1830, there were several hundred co-operatives. Some were

initially successful, but most cooperatives founded in the early 19th

century had failed by 1840. However, Lockhurst Lane Industrial Co-

operative Society (founded in 1832 and now Heart of England Co-

operative Society), and Galashiels and Hawick Co-operative Societies

(1839 or earlier, now Lothian, Borders & Angus Co-operative Society)

still trade today.

It was not until 1844 when the Rochdale Society of Equitable

Pioneers established the ‗Rochdale Principles‘ on which they ran their

cooperative, that the basis for development and growth of the modern

cooperative movement was established. [11]

2.16 BACKGROUND OF CO-OPERATION:

Looking back into the ancient past, one can get the previous points

about co-operation that there is mention of co-operative societies by

artists and mechanics in Egypt. In Greece, people of lower class were

38

seen joining the co-operative societies for religious rites. In Rome, there

existed co-operative societies were functioning, wherein co-operative

elements were seen. Co-operative elements are seen in the

commandments of Christianity. Thus, hardly there is any human society

in any age that has not implemented the philosophy of cooperation.

Before 3000 B.C., in the areas on the bank of central sea and in

Egypt, there developed sugarcane plantation. Thereafter, almost in the

15th century, the agricultural produce developed rapidly. In the third

decade of this century, with the protectionism in India, the modern sugar

industries were started. In Chemistry, sugar is carbohydrate. Sugar is very

much necessary for maintaining temperature of human body and for

providing energy to human body. The basic element of sugar is sucrose.

This element has calorie of 395 per kilogram.

Thus the sugar is required for human beings from the time

immemorial. So the benefits of the co-operations must be cleared for the

sugar co-operative society that is here explained as under.

2.17 SUGAR COOPERATIVES IN THE LIBERALISED

ECONOMY

THE GOVERNMENT OF INDIA WAS passing through a very

difficult phase in 1991. The foreign exchange reserves were at its lowest

ebb during that period and due to political turmoil in the country, the

scenario was bad

However, In spite of many obstructions, the Government of India

announced the new economic policy which highlighted the following :-

39

(i) No licensing except in 18 industries.

(ii) No MRTP assets limit and no prior approval required for MRTP.

(iii) Foreign investment limits up to 51% in 34 high priority industries.

(iv) List of areas reserved for public sector undertakings to be confined

to eight sectors.

(v) Automatic approval of foreign technology agreement.

(vi) Automatic clearance for import of capital goods, provided foreign

exchange requirement covered by equity.

(vii) Mandatory convertibility clause enabling financial institution to

convert loan into equity to go.

Cooperative being value based movement has a never ending

relevance. Its basic values viz. honesty, democratic functioning, mutual

concern and self-reliance are of universal values and are firmly rooted in

our soil. They are acceptable to all members of the society regardless of

religion, caste, community or class. The values are not inborn but have to

be nurtured. While, it is important o give emphasis to liberalization, the

social part of the cooperatives cannot be ignored altogether. The

Government should give level playing field to the private mills as well as

cooperatives in order to provide competitive environment it.

Liberalization should not be followed blindly in our country and

cooperatives should get priority particularly in agro-processing

industries. [12]

40

2.18 COOPERATIVES IN NEW ECONOMIC

ENVIRONMENT OF SUGAR FACTORIES:

In purchase of the policy of liberalization and to encourage the

expansion of private sector licensing system has been liberalized and

import and export duties have been reduced or withdrawn. The policy

also is to privatize the public sector undertakings wherever feasible and

desirable. The new economic environment will necessitate restructuring

of various sectors of economy. What will be the impact of the various

economic reforms in the form of liberalization, privatization,

mercerization and globalization on cooperatives, whether there would be

relevance of co-operatives at all in the new economic environment, as co-

operatives have a district identity in regard to their object, organizational

structure, approach, outlook, pattern of governance etc. and whether it

will be possible for co-operatives to retain or preserve their entity and

identity as such.

2.19 BRIEF HISTORY AND DEVELOPMENT OF SUGAR

INDUSTRY:

Let's see the history and development of sugar industry at three

levels i.e. State National and global. The detailed discussion of it is given

below:

At Global Level:

In the countries of the world, the history of cooperative ideology is

ancient and stretching over many years. There are evidences in history

that prove that the cooperative method of business is as old as human

being. - (5) There is production of two types of sugar in the world. East

41

India Company earned a lot of profit by purchasing sugar made from beat

and sugarcane and selling the same in the European markets. At this time,

production of sugar in India was very easy. Mechanical power was not

used for the production of sugar. But in West Indies, there were huge

efforts for sugar production at a very large scale. But because of

technological snag, they failed to extract complete juice from sugar.

Therefore, other countries had to import sugar from India.

At National Level:

The History of sugar production in India in the form of cottage

industry dates back to ancient past. India also exported sugar. Even East

India Company earned a lot of profit by purchasing sugar from India and

exporting it in the European market. At this time, sugar production was

very easy. Hardly any power was used for sugar production. India's

position changed since 1863-64 as a country exporting sugar. The country

started importing sugar and export decreased. But after 1900-1901, import

increased. The obvious reason for this was that sugar made from beat by

other countries was cheaper than sugar from sugarcane in India.

In 1899, Lord Carson government levied octroi on sugar being

imported from Europe. Despite, the industries were not protected well.

Till the First World War, there was not much decrease in foreign

competition. During the war, because of decrease in import, there was

shortage of sugar and its prices increased much. After 1925, sugar import

increased. As an impact of this, the farmers producing sugar had to suffer

a lot. Therefore, state governments of Uttar Pradesh, Bihar, Punjab and

Orissa requested the Imperial Council of Agricultural Research for giving

protection to sugar industries. In the history of India, for the first time the

question of protection of interests of agriculture came to Tariff Board. The

Board accepted to give protection. Accepting these recommendations, the

42

Board decided to give protection for about 15 years. In 19342 to give

protection to sugar producers, minimal price was offered by passing the

Sugar Act.

In the world, with reference to sugar production, India is the

largest sugar producing country. After the textile industry, sugar industry

is the second largest industry dependent on agriculture because of this

after the Indian independence; co-operative activities got an upward push.

Progress of sugar industries has been important in five Year Plans. After

independence, there has been three times increase in the number of sugar

mills. The sugar production has increased by 15 times. Main states in

India producing sugar include Uttar Pradesh, Bihar, Bengal, Maharashtra,

Punjab, Hariyana, Gujarat and others.

Form 1 ton sugarcane production, 100 kg sugar, 300 kg bagas and

40 kilo liter molasses is obtained. Molasses is very much important sugar

product. It has close connection with alcohol industry. Furthermore,

different types of acids are made from molasses. Bagas is what remains

after extracting juice from sugar. It is used in boiler to generate steam or

also used in generating electricity. Bagas is also used in paper mills. In

terms of area and production both, India is the largest sugarcane producing

country. Sugarcane industry is the largest industry in the country that is

dependent on agriculture. This industry has an important role in our

agricultural economy. -

In India, after the Five Year Plans, number of cooperative sugar

factories and sugar production has been increasing. The cooperative sugar

factories started in remote areas as rural development centers. Today, the

share in export of sugar by these factories is increasing. Sugar factories in

India have developed in 18 states. In these, Gujarat, Maharashtra, Uttar

Pradesh, Tamilnadu, etc are in the forefront. The following table shows

the state wise sugar industries in India:

43

Table 2.19.1 (State wise Sugar production in India (in ton)

Sr.

No.

State 1988-89 1989-90 1990-91 1991-92 1992-93 1993-94

1 Andhra Pradesh 194 197 273 284 181 221

2 Assam 9 11 8 9 8 3

3 Bihar (East) ~ -- -- — ~ ~

4 Goa 9 9 8 17 13 7

5 Gujarat 10 64 95 76 26 44

6 Saurashtra -- — -- - -- -

7 South 586 603 737 677 725 782

8 Gujarat (Total) 578 667 832 735 751 826

9 Hariyana 152 176 222 312 214 171

10 Karnataka

(East-West)

— -- -- — — —

11 Karnataka (Total) 352 386 452 495 403 375

12 Kerala 12 13 8 8 5 2

13 Madhyapradesh 22 27 49 55 22 16

14 Maharashtra (East) 601 1006 1140 1028 599 530

15 Central — - -- -- — 1014

16 South 1949 2802 2870 3062 2606 1155

17 Maharashtra (Total) 2550 3808 4010 4091 3396 2699

18 Nagaland — -- -- — — -

19 Orissa 16 14 21 35 32 23

20 Pondicherry 30 17 19 26 19 16

21 Punjab 173 179 221 303 317 223

22 Raj as than 8 6 8 12 8 5

23 Tamilnadu 424 375 463 495 439 444

24 U.P. (Centre) 341 314 380 575 451 380

East 84 215 102 131 94 75

West 119 210 198 237 161 169

Total 544 719 680 943 706 624

25 West Bengal — — — — — —

India (Total) 5073 6586 7274 7838 6424 5655

Percentage

(of cooperative sector)

58 59.9 60.4 58.5 60.6 57.5

(www.gujsugarfed.com)

44

Observing the above table, it is clear that in India how much

Sugarcane crushing is done by cooperative societies. Sugarcane crushing

in India is done in 18 states. The most crushing of sugarcane in India is

done in Maharashtra state. Gujarat stands second in crushing it. The least

crushing is in Rajasthan. All these factories have to struggle hard for

procuring raw material. Their raw material depends on Nature. If there is

enough rainfall or enough water supplies, there is good produce of

sugarcane. Furthermore, these factories have to face many government

controls. Despite all this difficulties, the cooperative sugar industries have

developed well during five year plans.

2.20 SUGAR MILLS IN GUJARAT

The sugar mills form a bulk of the Gujarat sugar industry. Around

17 sugar factories in the state are equipped with advanced technological

equipments which have a capacity to crush around 65,000 tons of sugar

daily. Around 1.9 lakh hector of the total cultivable land is meant for

sugarcane cultivation.

Today, the sugar mills in the state covers and employs more than

4.50 lakh farmers and cultivators. The overall turnover of the co-

operative sugar mills in Gujarat crossed around Rs 2000 crores for the

financial year 2008 to 2009. Apart from offering various types of

employment opportunities in the organized sector, the unorganized sector

also offers scope for employment for lots of people. It is estimated that

the total number of people directly and indirectly associated with the

Gujarat sugar industry is around 3.15 lakh.

45

2.21 GUJARAT SUGAR INDUSTRY

Gujarat sugar industry forms a major part of the sugar industry in

India. It is a part of the agro based industries in the country and

contributes a significant portion to the gross domestic product of the

country. In fact, India is the second largest producer of sweets in the

world and a number of varieties of sweet products are manufactured in

various sugar mills of Gujarat and exported to other countries across the

world.

2.22 SUGAR FACTORY LIST IN GUJARAT

Names and addresses of Chairmen/Managing Directors of Sugar

Factories:

1. Shree Khedut Sahakari Khand Udyog Mandli Ltd., P.O.Sardar

Baug, Baben Bardoli-394 602, Dist. Surat.

2. Sahakari Khand Udyog Mandal Ltd.,Gandevi- 396360, Via

Bilimora, Dist.Navsari

3. Madhi Vibhag Khand Udyog Sahakari Mandli Ltd., P.B.No.5, At

& Post Madhi-393 340,Dist.Surat

4. Shree Chalthan Vibhag Khand Udyog Sahakari Mandli

Ltd.,Chalthan-394 305, Ta. Palsana, Dist. Surat.

5. Shri Maroli Vibhag Khand Udyog Sahakari Mandli Ltd.,

Kalyannagar, Maroli Bazar-396 436,Ta.Jalalpor, Dist. Navsari

46

6. Shree Valsad Sahakari Khand Udyog Mandli Ltd., N.H. No.8,

Parnera-Pardi, P.O. Valsad Sugar Factory-396 007, Dist. Valsad.

7. Shree Sayan Vibhag Sahakari Khand Udyog Mandli Ltd.,Sayan-

394370,Ta.Olpad, Dist.Surat.

8. Shree Mahuva Pradesh Sahakari Khand Udyog Mandali Ltd.,

Factory Site Bamania-394 246, Dist. Surat

9. Shree Ukai Pradesh Sahakari Khand Udyog Mandli Ltd., At &

Post Khushalpura- 394 650, Ta. Vyara, Dist. Surat.

10. Shree Ganesh Khand Udyog Sahakari Mandli Ltd., 'Harisinh

Mahida Bhavan', Vataria-393 001,Ta.Valia, Dist. Bharuch

11. Shree Kamrej Vibhag Sahakari Khand Udyog Mandli Ltd., Navi-

Pardi-394 150, Ta.Kamrej, Dist.Surat.

12. Shree Khedut Sahakari Khand Udyog Mandli Ltd., At Pandvai,

Ta.Hansot, P.B.No.3,Via Kosamba,(RS)-394 120 Dist. Bharuch

13. Shree Narmada Khand Udyog Sahakari Mandli Ltd., At

Dharikheda,

Post Timbi 393 140, Via Pratapnagar SPO, Ta. Nandod, Dist.

Narmada.

14. Coper Co-operative Sugar Ltd., Dadariya, Taluka Valod,

Dist. Tapi-394 630 (Gujarat)

15. Vadodara Dist.Co- Op. Sugarcane Growers' Union Ltd., At & Post

Gandhar, Ta. Karjan, Dist. Vadodara District Ragistrar Narmada

Bhavan, 'C' Block, 4th Floor Vadodara

47

16. Shree Bileshwar Khedut Sahakari Khand Udyog Mandli Ltd.,

Kodinar-362 720, Ta. Kodinar, Dist. Junagadh.

17. Shri Talala Taluka Sahakari Khand Udyog Mandli Ltd., Sasan

Road, Talala (Gir) 362 150, Ta. Talala, Dist. Junagadh

18. Shree Una Taluka Khedut Sahakari Khand Udyog Mandli Ltd.,

Gir-Gadhada Road, Una (Sorath) 362 560

19. Kaveri Vibhag Sahakari Khand Udyog Mandli Ltd.,Nisha

Complex, 1st floor, Flat No.103, Opp: Water Tank Khergam Road,

P.B.No. 5, Chikhali-396 521, Dist. Valsad..

20. Shree Damanganga Sahakari Khand Udyog Mandli Ltd., National

Highway No.8, (Station Bhilad), Ta.Umargam, P.B.No.22, Bhilad-

396 105, Dist.Valsad

21. Shree Surat Jilla Uttar Purve Vibhag Khand Udyog Sahakari

Mandali Ltd., At.Naren, Ta.mandvi, Dist. Surat.

22. Shree Ukai Asargrat Sahakari Khand Udyog Mandali

Ltd.,(Gunsada), At.Bardipada Falia, Ta.Songadh, Dist.Tapi.

23. Shree Mahi Panchmahal Sahakari Khand Udyog Mandli Ltd.,

Above Co-operative Press, Opp: Jain Society, Highway Road,

Godhara-389 001, Dist. Panchmahal.

24. Shree Kantha Vibhag Sahakari Khand Udyog Mandli Ltd., Saras,

Gupta Complex, Kim Road, Behind Parimal Talkies, Opp: Balva

Talav, At & Post Saras, Ta. Olpad, Dist.Surat.

48

2.23 MAP OF SUGAR FACTORY IN GUJARAT

49

2.24 GUJARAT STATE FEDERATION OF CO-OP.

SUGAR FACTORIES LTD.

Formally, the Gujarat State Federation of Co-operative Sugar

Factories Limited was registered in 1960, at Ahmedabad, as facilitator of

Sugar Co-operatives with following objective: -

To coordinate activities of different Co-operative Sugar factories.

To provide technical support and guidance for the expansion.

renovation and modernization of the existing units and in by

product utilization and sale

To assist the units in programming funds from the financial

institutions and government bodies.

To encourage the research work for better quality of Sugar lane

Crop. Thereby achieving the Optimum production.

To provide technical and professional training to the farmers to

improve their field.

To be an important interface between to Co-operative Sugar

factories and the government bodies.

"Sugar Co-operative and their leaders in Gujarat are endowed with

Co-operative Spirit, Business acumen and rich experience in running

Sugar Industry, In changed economic environment by Proper planning,

prudent management and cost disciplines encouraging Government

Policy Gujarat Sugar Co-operative Sector can trans from Sugar Industry

into Sugar Cane Complex and provide direction to others."

50

2.25 AREA OF SUGARCANE AND PRODUCTION

Table - 2.25.1

Season Area (Ha) Production/(ha)(MT)

2009-10 157632 70.02

2008-09 150233 74.75

2007-08 189357 73.75

2006-07 182000 72.500

2005-06 158128 71.530

2004-05 129774 70.000

2003-04 150000 67.190

(50

th Varshik Aheval, Gujarat Rajya Sahkari Khand Udhyod Sangh Ltd.,Gandhinagar, P.24)

2.26 NET SUGAR AND MOLASSES PRODUCES,

RECOVERY OF SUGAR & AVERAGE FINAL

MOLASSES % CANE OF GUJARAT STATE

FEDERATION OF CO-OP. SUGAR FACTORIES

LTD.

Table - 2.26.1

Sr.

No.

Factory Total Net

Sugar

Produced

(Qtls.)

Net

Molasses

Produced

(MT)

Sugar

Recovery

(%)

Avg.

Final

Molasses

% Cane

South Gujarat

01 Bardoli 2103768 87452 10.765 4.475

51

02 Gandevi 1262804 49254 11.406 4.449

03 Madhi 1289877 50077 10.660 4.139

04 Chalthan 1150689 52276 10.41 4.73

05 Maroli 238867 10996 9.81 4.51

06 Valsad 262441 12878 9.891 4.853

07 Sayan 1154270 56500 10.150 4.970

08 Mahuva 707963 26745 10.71 4.046

09 Ukai 64704 4708 8.194 5.963

10 Ganesh 611752 26864 10.33 4.53

11 Kamrej 537453 24665 10.54 4.836

12 Coper 414665 17381 10.36 4.34

13 Pandvai 572334 22383 10.280 4.020

14 Narmada 770479 32637 10.77 4.56

15 Vadodara 374274 17424 10.20 4.75

S. Gujarat 11516340 492239 10.559 4.513

16 Kodinar 225661 11191 9.36 4.64

17 Talala 126216 5183 10.44 4.29

SAURASHTRA

351877 16374 9.718 4.522

Total (A + B) 11868217 508613 10.532 4.514

(50th

Varshik Aheval, Gujarat Rajya Sahkari Khand Udhyod Sangh Ltd.,Gandhinagar, P.28-29)

52

2.27 BURNT CANE MONTH-WISE PERCENTAGE FOR

SEASON 2009-2010 OF GUJARAT STATE

FEDERATION OF CO-OP. SUGAR FACTORIES

LTD.

Table - 2.27.1

Sr.

No. Factory

Oct.

2009

Nov.

2009

Dec.

2009

Jan.

2010

Feb.

2010

Mar.

2010

Apr.

2010

May

2010

To-

date %

01 Bardoli 07.29 13.57 27.39 40.39 53.51 60.71 81.50 -- 43.738

02 Gandevi 00.20 02.81 01.52 18.24 18.06 22.34 59.44 87.86 22.84

03 Madhi 01.48 05.05 12.16 23.17 22.53 40.09 69.01 -- 22.472

04 Chalthan 07.07 12.15 24.58 40.46 51.81 63.20 73.77 -- 42.56

05 Maroli 03.09 09.89 28.26 29.51 31.89 -- -- -- 23.16

06 Valsad -- -- -- -- -- -- -- -- NIL

07 Sayan 05.40 06.57 17.94 28.82 47.03 61.85 85.07 99.12 42.39

08 Mahuva 01.50 08.61 24.32 34.07 46.05 73.23 88.65 -- 37.75

09 Ukai 00.822 11.661 28.048 28.347 -- -- -- -- 20.741

10 Ganesh 04.93 09.73 22.09 42.12 45.84 62.98 88.03 -- 40.66

11 Kamrej 05.91 07.35 20.62 27.97 38.40 46.88 82.55 -- 33.42

12 Coper 00.87 04.00 13.65 29.83 46.66 61.12 67.16 -- 32.297

13 Pandvai 03.68 06.51 13.95 27.78 32.21 69.92 -- -- 27.43

14 Narmada 06.54 09.57 10.90 15.20 17.88 19.56 43.09 -- 18.27

15 Vadodara 06.65 20.86 40.32 46.44 54.06 75.23 92.34 -- 47.52

16 Kodinar -- -- -- -- -- -- -- -- NIL

17 Talala -- 01.74 00.013 00.053 -- -- -- -- 00.114

(50th

Varshik Aheval, Gujarat Rajya Sahkari Khand Udhyod Sangh Ltd.,Gandhinagar, P.24-25)

53

2.28 DETAILS OF MILLING BAGASSE AND ADDED

WATER CANE OF GUJARAT STATE

FEDERATION OF CO-OP. SUGAR FACTORIES

LTD.

Table - 2.28.1

Sr.

No.

Factory Bagasse % Cane Added Water %

Cane

2009-10 2008-09 2009-10 2008-09

01 Bardoli 29.893 29.054 28.153 27.056

02 Gandevi 29.789 28.789 33.891 33.213

03 Madhi 29.744 30.178 29.363 27.765

04 Chalthan 31.44 30.77 30.36 29.19

05 Maroli 33.83 34.77 35.32 33.99

06 Valsad 25.024 26.357 29.90 27.82

07 Sayan 30.540 30.452 28.903 29.750

08 Mahuva 27.927 29.426 27.156 28.904

09 Ukai 27.749 25.842 23.032 24.534

10 Ganesh 28.66 30.16 27.92 27.22

11 Kamrej 29.41 29.17 29.14 27.95

12 Coper 29.34 32.5 27.32 23.65

13 Pandvai 30.887 29.471 32.445 29.005

14 Narmada 27.39 28.34 28.09 28.85

15 Vadodara 30.67 29.84 30.55 30.85

16 Kodinar 26.55 27.96 20.89 22.93

17 Talala 30.06 29.82 36.48 35.67

(50th

Varshik Aheval, Gujarat Rajya Sahkari Khand Udhyod Sangh Ltd.,Gandhinagar, P.30-31)

54

2.29 TECHNICAL PERFORMANCE OF GUJARAT

STATE FEDERATION OF CO-OP. SUGAR

FACTORIES LTD.

Table - 2.29.1

Details 2009-10 Factory 2008-09 Factory

Highest Pol % Cane 13.181 Gandevi 13.37 Narmada

Highest Recovery % Cane 11.406 Gandevi 11.41 Narmada

Capacity Utilisation 180 days

basis

159.020 Narmada 131.224 Narmada

Minimum Total Time Lost%

Available Time

6.44 Narmada 3.46 Narmada

Minimum Pol % Bagasse 1.871 Madhi 1.883 Madhi

Highest Reduced Mill Extraction 96.31 Gandevi 96.11 Gandevi

Highest Mixed Juice Purity 81.840 Gandevi 82.67 Bardoli

Lowest Final Molasses Purity 29.770 Gandevi 29.51 Mahuva

Highest RBH Extraction (RAO) 93.05 Mahuva 92.21 Mahuva

Lowest Total Sugar (POL) Loss

% Cane

1.795 Gandevi 1.841 Gandevi

Lowest Sugar (POL) Loss in

Bagasse % Cane

0.545 Gandevi 0.570 Gandevi /

Madhi

55

Lowest Sugar (POL) Loss in

Final

1.104 Mahuva 1.23 Mahuva

Highest Added Water % Fiber 267.841 Talala 259.041 Talala

Lowest Steam % 36.82 Pandvai 40.78 Narmada

Lowest Power Consumption

KWH / Qtl.

14.69 Narmada 13.30 Narmada

Lowest Man Power Hrs. Qtl. 0.647 Gandevi 0.06 Madhi

(50th

Varshik Aheval, Gujarat Rajya Sahkari Khand Udhyod Sangh Ltd.,Gandhinagar, P.25)

2.30 BENCH MARK OF GUJARAT STATE

FEDERATION OF CO-OP. SUGAR FACTORIES

LTD.

Table - 2.30.1

R.M.E. 96 % (Maximum)

R.B.H.R.

(Gundurao)

91 % (Minimum)

M.J. % Cane 98 % to 100 %

Bagasse 2.0 % (Maximum)

Utilization of

Steam

48 to 50 % in respect of sugar factories having

boiler pressure of 21 Kg / Cm2 44 to 46 % in

respect of sugar factories having boiler

pressure of more than 21 Kg-Cm2

Power Factor 0.99

(www.gujsugarfed.com)

56

2.31 SEASON WISE IMPORTANT DATE FROM 1995-96

TO 2009-10 OF GUJARAT STATE FEDERATION

OF CO-OP. SUGAR FACTORIES LTD.

Table - 2.31.1

Seasons Capacity

TCD

No. Of

Factories

in

Operation

Qty, of

Sugarcane

Crushed

(MT)

Qty, of

Net

Sugar

Produced

(Qtls)

Recovery

Cane

(%)

2009-10 65000 17 11268479 11868217 10.532

2008-09 65000 17 9407956 10093167 10.845

2007-08 65000 17 12696058 13561457 10.681

2006-07 65000 17 13311714 14171205 10.646

2005-06 65000 17 10787226 11675389 10.823

2004-05 65000 17 7405371 7968307 10.766

2003-04 60500 15 9753455 10663774 10.933

2002-03 6500 17 11827470 12515222 10.581

2001-02 60500 15 9782370 10554533 10.789

2000-01 65000 17 10293973 10725601 10.419

1999-00 65000 18 10753539 11409019 10.609

1998-99 60000 17 9884159 10246489 10.366

1997-98 62500 18 8305798 8893786 10.707

1996-97 58500 17 9022976 9668129 10.715

1995-96 54750 16 10781447 11297996 10.479

(50th

Varshik Aheval, Gujarat Rajya Sahkari Khand Udhyod Sangh Ltd.,Gandhinagar, P.11)

57

2.32 FUNCTIONS OF DIRECTORATE OF SUGAR-

GUJARAT:

1. To register the newly formed sugar cooperative within the state

and accept its bylaws and also approve the amendments in the by-

laws.

2. To appoint Board of Directors, remove them when needed;

nominate state government nominees on the board and also to

conduct the election of board of directors from time to time. He

also has the authority to appoint administrators/custodian of sugar

cooperative if needed, take the sugar factories into liquidation if

required, appoint liquidation officer and keep a watch on such

officers.

3. To inspect the audit memos of sugar factories, carry out special

audit it" malpractices are found and fix the responsibilities of all

those concerned indulge in mal-practices.

4. To appoint his nominee on the board of directors of cooperative

sugar factories or personally remain present in the meetings of

board of directors and provide guidance.

5. To short out all the issues of cooperative sugar factories and also to

represent them with central and state government in the event if

certain problems can not be settled at his level. More over he also

becomes an important connecting link and represent sugar

cooperative with financial institutions/boards/banks for solving

financial matters.

6. To help sugar cooperatives to get loans from financial institutions.

58

7. To declare the sugarcane reserved areas for respective sugar

cooperatives under the Sugarcane (Control) Order 1966, put a ban

on supply of sugarcane during low production of it, grant

permission to sale sugarcane to other states occasionally and also

to ensure that farmers are paid according to statutory minimum

price declared for different sugar seasons.

8. To issue license to jaggery and khandsari manufacturing units,

cancel the license,

9. Renew the license under Gujarat Jaggery and Khandsari Sugar

(Production Control) Order 1977.

The above functions are just to name a few out of various administrative

and legislative functions that are performed by Directorate of Sugar,

Gujarat State. For effective administration of sugar cooperatives, and to

facilitate its operations at district levels, the offices of District Registrar

(Sugar) had been established one each at Surat and Junagadh. However,

the office of District Registrar has been abolished since October 16,

2003.[13]

2.33 GROWTH OF SUGAR INDUSTRY IN INDIA:

Gujarat is one of the well known sugar cane producing regions in

India. This has been one of the reasons for the growth of sugar industry

in the state. After independence, the government gave importance to the

growth of sugarcane farming in the state and established a number of

sugar cane mills. After the market liberalization policies took place in the

1990s, the export of the sugar industry increased to a great extent.

59

Due to the growth of technology, newer methods have been

implemented which has increased the production of sugar. Today, the

sugar mills in Gujarat are equipped with an array of hi-tech facilities and

services which make them a known name in the field of agro based

industries.

Today, there are around 554 sugar mills and factories in the state

of Gujarat. It must be noted in this respect that almost all of the Gujarat

Sugar Industry is under a state cooperative system where the government

partly controls the production and the business. However, there are also a

number of sugar mills which are privately owned. Out of the 554 sugar

mills, most of them are covered under the co operative system.

According to the recent surveys, the total amount of production of sugar

in the state is around 190 lakh metric tons.

2.34 PICTURE OF SUGAR INDUSTRIES IN INDIA:

Figure: Lakh & Metric Ton

Table - 2.34.1

Sr. No. Particular

Actual

Production

(1-10-09 to 30.09.10)

Approximate

Production

(1-10-10 to 30.09.11)

1 Opening Stock 44.00 50.00

2 Production 187.00 250.00

3 Local-Self

Consumption

225.00 230.00

60

4 Export

1. Refined Sugar

2. Raw Sugar

3. White Sugar

- 15.00

5 Import

1. Refined Sugar

2. Raw Sugar

3. White Sugar

Total Import

41.07

-

32.91

07.06

41.97

-

-

-

-

- 6 Closing Balance

(as on 30th September)

49.97 55.00

(50th

Varshik Aheval, Gujarat Rajya Sahkari Khand Udhyod Sangh Ltd.,Gandhinagar, P.8)

2.35 PROFILE OF INDIAN SUGAR INDUSTRY:

Presently India is the largest producer and consumer of sugar in the

whole world. Sugar industry has under gone phenomenal growth after

independence in the country. It is also the largest agro-based industry

located in the rural India. Sugar industry occupies an important place

among organized industries in India. Sugar industry, one of the major

agro-based industries in India, has been instrumental in resource

mobilization, employment generation, income generation and creating

social infrastructure in rural areas. Indeed, sugar industry has facilitated

and accelerated pace of rural industrialization. At present, there are 594

registered sugar factories having capital investment of more than Rs.

50,000 crores and annual production capacity of 217.45 lakh tones

(NFCSF Report, 2007). [14]

61

2.36 SUGAR INDUSTRIES IN INDIA:

Place in Under the structured Industrial Development Policy, sugar

industry India is the largest single producer of sugar including traditional

cane sugar sweeteners, khandsari and Jaggery equivalent to 26 million

tones raw value followed by Brazil in the second place at 18.5 million

tones. Even in respect of white crystal sugar, India has ranked No.l

position in 7 out of last 10 years. [15]

2.37 SUGAR PRODUCTION IN INDIA:

Presently India is among the largest producers of sugar in the

world and ranks as the largest growing global market for the product.

India has 20% of the total sugar mills in the world and accounts for about

15% of the global production. On the back of successive good monsoons,

sugar production in the country increased rapidly in the last couple of

years, reaching 28.3 million tones in 2006-07 from 15.5 million tones in

1998-99. [16]

2.38 FINANCIAL DATA:

The annual turnover of this industry is to the tune of more than Rs.

42,000 crores. The central and state governments receive annually Rs.

2,200 crore as excise duty, purchase tax, and cess. More than 5 core

farmers are engaged in sugarcane cultivation and about 5 lakh rural

people have got direct employment in the industry. Sugar industry has

brought socioeconomic changes in rural India by way of facilitating

entrepreneurial activities such as dairies, poultries, fruits and vegetable

processing, and providing educational, health and credit facilities

According to central government sources it has been estimated that 45

62

million sugarcane farmers, their dependents and a large number of

agricultural laborers are involved in sugarcane cultivation, harvesting and

ancillary activities, constituting 7.5% of the rural population besides,

about 0.5 million skilled and semi-skilled workers, mostly from the rural

areas are engaged in the sugar industry. [17]

2.39 HISTORY AND GROWTH OF INDIAN SUGAR

INDUSTRY:

By 1931-32 there were 31 sugar factories in India all of which

were in the private sector. The total production of sugar at that time was

only about 1.5 lakh tons, whereas the consumption was about 12 lakh

tons. To meet the domestic demand of sugar, India had to import sugar

mainly from Java (Indonesia). [18]

2.40 SUGAR CONSUMPTION IN INDIA:

India is the largest consumer of sugar in the world. The average

per capita consumption of sugar is estimated at 17.2 kilograms per year

in the year 2002-03.'" Based on the existing trend, this is estimated to

increase to 23-24 kilogram per year-by-year 2010. [19]

Table 2.40.1

Consumption of Sugar in India

Sugar Season Internal Consumption

(Lakh Tons)

2002-2003 183.76

2003-2004 175.00

2004-2005 167.07

2005-2006 189.45

2006-2007 201.24

63

2.41 SUPPLY OF SUGARCANE IN INDIA

The following table reveals that traditional sweetener manufacturer

are lacking far behind in extracting juice from sugarcane and even in

recovery of sugar as compared to sugar mills. [20]

Comparative Extraction and Recovery from Sugar Cane in

Percentage

Table - 2.41.1

Product Juice/Extractio

n

Recovery

Jaggery 55 9.5 to 11.0

Khandsari 70 6 to 7

Sugar 90-92 9 to 10

2.42 SUGAR CANE (REGULATION OF SUPPLY &

PURCHASE) ACT, 1953:

Regulates the supply and purchase of sugarcane required for use in

a sugar factory, Khandsari unit and for manufacture of Jaggery. To

ensure that every sugar mill gets required quantity and quality of

sugarcane for crushing, central government has made provision for cane

reservation area and distance between two sugar mills in its licensing

policy. [21]

2.43 GENESIS OF SUGARCANE AND SUGAR IN INDIA

Sugarcane has been one of the major crops of India since times

immemorial. The term of sugarcane is found in the Atharvaveda,

Vajasaneyii, Maitrayani and Taittriya, Samhitas and the subsequent

Sutras. [22]

64

2.44 PICTURE OF SUGAR INDUSTRIES IN WORLD

Figure in Million & Ton

Table - 2.44.1

Particular

World Sugar Balance

2010-11 (Approx)

2009-10 Difference

Million

Ton Percentage

Production 170.375 158.830 11.545

Consumption 167.154 163.779 3.375

More / Loss 3.221 (-) 4.949 -

Import Demand 48.625 50.722 (-)4.097

Qty. For Export 50.557 52.688 (-) 2.131

Close Qty. 56.192 54.903 1.289

Qty / Consumption

Percentage

33.62 33.52

Table - 2.44.2

Top 10 Sugar Producers in the World (Million Tons / Raw value) [23]

S.No. Country 2000-01 2001-02 2005-06

1. India 20.1 20.0 20.0

2. Brazil 18.1 22.4 30.0

3. EU 18.1 16.0 22.0

65

4. USA 7.6 7.0 7.0

5. China 6.7 9.2 10.0

6. Thailand 5.3 6.5 5.0

7. Mexico 5.2 5.1 6.0

8. Australia 4.4 4.9 5.4

9. Cuba 3.6 3.7 NA

10. South Africa 2.7 2.4 5.7

2.45 INTERNATIONAL TRADE OF SUGAR:

Sugar is produced in 110 countries. The leading sugarcane

producing countries are Brazil, India, Australia, Thailand, China and

Cuba the Russian Federation. Ukraine and Europe account for around 80

per cent of total beet sugar production. In addition to weather conditions,

diseases, insects, and quality of soil, production of sugarcane and beet are

affected by international trade agreements and domestic price support

programmes. [24]

2.46 SUGAR EXPORTS FROM INDIA

India has to guard against the possible repercussions of its entry

into the international market either as an importer or as an exporter. So

being a large country, international price would always tend to move

against India. [25]

66

Table - 2.46.1

Sugar Export from India

Financial Year Quantity (Million

Tons) Value (Rs -Crores)

2001-2002 14,56,448 1728.04

2002-2003 16,62,370 1769.49

2003-2004 12,00,600 1216.59

2004-2005 1,08,690 149.53

2005-2006 3,16,850 557.09

2006-2007 10,04,317 2,119.68

Source: DGCI&S Kolkatta

2.47 IMPORT OF SUGAR BY INDIA

Government under advises of the Food Ministry, would access the

shortfall and give a directive for import. In 1993-94, anticipating a heavy

shortfall of over 2 million tons, central government allowed free imports

under open general license. Almost half of imports were private. Today

imports are freely allowed. Import of sugar, which was placed under

Open General License (OGL) with zero duty, in March 1994, continued

with zero duty up to April 27, 1998. [26]

2.48 TYPES OF SUGAR

There are many types of sugar but we define here with mainly two

one is Raw Sugar and second is White Crystal Sugar types.

67

* Raw Sugar

We are listed at the apex in the list of the most reliable natural raw sugar

exporters from India. The quality and efficacy of the organic raw sugar in

respective applications has attracted various national as well as

international clients to place bulk orders. The unrefined raw sugar is used

as a sweetening agent used in various sweets and confectioneries. The

procedures used in the manufacturing of the raw sugar assist in the

production of quality products that meet the national as well as

international market. Additionally, customers are eased with the

availability of the raw sugar in handy packages to meet the specific

requisites.

Product details of raw sugar

polarisation % : 99 degree (min)

moisture% : 0. 1(max)

colour in icumsa unit : 800 (max)

dextran : 75 ppm (max)

68

* White Crystal Sugar

We are reckoned as one of the most prominent White Crystal Sugar

Manufacturers from India. Various national as well as international

clients are placing huge and repeated orders for the Pure White Crystal

Sugar as no alternative is available in the market in terms of crystal clear

appearance and sweetness. Moreover, the procedures used in the

processing of the Refined White Crystal Sugar are as per the latest

techniques that ensure availability of zero moisture and free from external

contaminants. Additionally, customers are eased with the availability of

the White Sugar Crystals in sizes and dimensions that meet the Indian as

well as international standards.

2.49 SUGAR PROCESSING

Sugar occurs in greatest quantities in sugarcane and sugar beets

from which it is separated for commercial use. The natural sugar stored

in the cane stalk or beetroot is separated from rest of the plant material

through a process known as refining. [27]

69

Raw sugar is sometimes prepared as loaves rather than as a

crystalline powder. In this technique, sugar and molasses are poured

together into molds and allowed to dry. The resulting sugar cakes or

loaves are called Jaggery in India, Pingbian Tong in China, and Panela,

Panocha, Pile, and Piloncillo in various parts of Latin America. [28]

Conclusion:

Above review of related literature is very useful to this research and

researcher wants to compare with hypotheses of this research in

chapter no. 6th.

Now the investigator wants to explain Research Methodology in

chapter no.3.