Group5_Sugarcane Marketing in UP

8/9/2019 Group5_Sugarcane Marketing in UP

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Term IVProject Report

Problems and Prospects of Sugarcane Marketing in UP

Rural Research Methods

9/25/2014

Course Instructors: Prof. Sushil Kumar & Prof. Sanjeev Kapoor

Submitted By

Group 5

Rishabh ABM10002 | Anurag Singh ABM10004 | Nivetha M ABM10015|Dinesh Raju M ABM10020 | Gayathri Sirisha ABM10033


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Executive summaryThe aim of this project is to study the problems that Sugarcane farmers in UP face while marketingtheir produce and suggest suitable solutions to alleviate them. Sugarcane farmers in UP are facinghuge inefficiencies in the cane procurement system in logistics, supply tickets issuance,communication gap between sugar mills and farmers. These factors have made farmers to loseconfidence in sugarcane cultivation and farmers are moving to other crops. Also, the area underSugarcane cultivation is dwindling.

The major management dilemma identified here is if the cane procurement process is efficient or not.The problem is to find out ways to weed out the inefficient practices existing in the current system.Based on secondary research and also an interview with Prof. Amit Agrahari, who was instrumental inthe development of Sugarcane Information System (an IT based solution to shrink the communicationgap) research questions are formulated. Hypothesis, variables and constructs are formulated thatanswer all the research questions.

Conclusive research is designed to include two sets of questionnaires to be administered to thefarmers and to the mills. The questionnaire to the farmers are designed to capture demographics,challenges, barriers, awareness of SIS, perception and impact of SIS. An exploratory research has beenconducted in the sugar mills in order to find if there are any issues from the mills perspective as SIS isinstalled in the mills.

The sampling technique that is to be used for the survey would be non-probabilistic judgmentalsampling. The survey would be administered to each farmer personally. The data analysis techniques& statistical tools have been used for testing each hypothesis.

From our research, we could conclude that the procurement system of sugarcane is functioning well.However, we could dig out the problems faced by the problems as well as the sugar mills and theunderlying reasons were analyzed in our report.


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Table of ContentsExecutive summary ...................................................................................................................................... 1

1. Introduction .......................................................................................................................................... 4

2. Sugarcane Information System (SIS) ................................................................................................... 5

3. Motivation behind the project ............................................................................................................ 5

4. Development of Managerial dilemma ................................................................................................ 55. Management problem ......................................................................................................................... 6

6. Market Research Problem ................................................................................................................... 6

7. Research Methodology ........................................................................................................................ 6

8. Research design .................................................................................................................................... 6

Exploratory Research ........................................................................................................................ 6

Conclusive Research ......................................................................................................................... 6

9. Sampling Design ................................................................................................................................... 7

10. Formulation of Research Questions ................................................................................................ 7

11. Hypotheses, Variables and Constructs Formulation ....................................................................... 7

12. Questionnaire Design ..................................................................................................................... 10

Farmers questionnaire .................................................................................................................... 10

Exploratory research questionnaire for sugar mills ........................................................................ 12

13. Data Analysis .................................................................................................................................. 12

Discriminant Analysis ...................................................................................................................... 13

Paired T-Test ................................................................................................................................... 13Descriptive Statistics ....................................................................................................................... 13

Factor Analysis ................................................................................................................................ 13

Dispersion Measures ...................................................................................................................... 13

Frequency Distribution (Histogram) ............................................................................................... 13

Text Analytics .................................................................................................................................. 13

14. Primary Research ........................................................................................................................... 13

Primary Data collection .................................................................................................................. 13

15. Village Study ................................................................................................................................... 14

Bharatpur, Tilhar ............................................................................................................................. 14

Historical Timeline ...................................................................................................................... 14

Institutional Map ........................................................................................................................ 14

Resource Map ............................................................................................................................. 15

Dakiya Tiwari, Nigohi ...................................................................................................................... 16

Historical timeline ....................................................................................................................... 16


Resource Map ............................................................................................................................. 17

Mohanpur, Roza ............................................................................................................................. 18


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Historical Timeline ...................................................................................................................... 18


Resource Map ............................................................................................................................. 19

16. Comparative analysis of the villages ............................................................................................. 20

Social Issues in the villages ............................................................................................................. 21

17. Results of Exploratory Research in the mills ................................................................................. 22Procedure followed by mills ........................................................................................................... 22

Issues with sugarcane farming........................................................................................................ 22

Steps required to improve efficiency of sugarcane farming .......................................................... 22

18. SIS implementation across mills .................................................................................................... 22

Dalmia chini mills, Nigohi ................................................................................................................ 22

Functional facts of the mill ......................................................................................................... 23

Byproducts of Sugarcane and Marketing ................................................................................... 23

SIS implementation ..................................................................................................................... 23

Impact of SIS ............................................................................................................................... 23

The Kisan Sahkari Chini Mills Ltd., Tilhar ........................................................................................ 23

Services provided to the farmers ................................................................................................ 24

19. Challenges faced in implementing SIS ................................................................................................. 24

20. Comparison of Cost of production ...................................................................................................... 24

21. Payments issue ..................................................................................................................................... 24

22. Other problems explored ..................................................................................................................... 25

Intercepts of Interview with Director of Sugarcane Research Council, Shahjahanpur (Dr.Bakshiram) ...................................................................................................................................... 26

23. Data Analysis and Results .................................................................................................................... 26

Ways of marketing Sugarcane in UP ............................................................................................... 26

Factors that influence the means of selling .................................................................................... 27

Average yield per cultivation cycle ................................................................................................. 28

Awareness of SIS ............................................................................................................................. 28

Farmers perception of SIS Comparison across mills ................................................................... 28Impact of SIS ................................................................................................................................... 30

a. SIS has reduced the number of trips to the sugar mills >=75%. ......................................... 30

b. SIS did lead to the increase in the issue of supply tickets .................................................. 31

c. Paired t-test for productivity: ............................................................................................. 31

d. Paired t-test for Profitability ............................................................................................... 31

Demographics ................................................................................................................................. 32

24. Conclusion ............................................................................................................................................ 32

25. References ............................................................................................................................................ 33

26. Appendix .............................................................................................................................................. 33


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1. IntroductionThe state of Uttar Pradesh (UP) is one of the major sugar-producing states in the country. The sugarindustry in the state is largely subsistence oriented and sugarcane is one of the major cash crops. TheSugar industry of Uttar Pradesh shares a symbiotic relationship amongst the rural masses and thus,serves as a key nerve center for the development in rural sector.

The area under sugar cultivation in the state amounts to 20.35 lakh out of the total 44.03 lakh ha areaunder cultivation in the country. The production of sugarcane amounts to 11.62 million tonnes, whichis actually 39 percent of the total sugarcane production in the country. Over the year from 1961, thestate has experienced a growth of 1.38 percent, 2.84 percent, and 1.43 percent annually inproductivity, sugarcane production and acreage, respectively.

Production and Stock of Sugar in Uttar Pradesh(2013-2014-Up to April, 2014)

(In Metric Tons)

Region Sugar Production Season2013-14 *

Stocks of Sugar(As on 30.04.2014) 2013-14Season & Earlier SeasonsStock of Sugar

% of Sugar Stocks of 2013-14 andEarlier Seasons to SugarProduction of 2013-14 Seasons

Uttar Pradesh Central 2308055 1666510 72.2

Uttar Pradesh East 2338572 1847537 79.0

Uttar Pradesh West 1884099 1378842 73.2

Uttar Pradesh Total 6530726 4892889 74.9

India 23932122 16645021 69.6

Source: National Federation of Cooperative Sugar Factories (NFCSF)

There is a good forward as well as backward linkages in the state. Despite that, there is a considerableinstability in the industry. This is due to the interdependence and interrelationship between gur,khandsari and white sugar. Relative differences between the price for gur and sugar cause theinstability in the Sugarcane industry. Depending upon the price differences and the acreage area,

sugarcane growers offer threat to the industry by regulating the supply of the sugarcane to theindustry, affecting their performance adversely. Despite being a leading producer, the recovery fromthe sugarcane is below the national average of 9.75 percent.

The other perspective to the industry is brought by the farmers and the major mill owners. The majorproblems that farmers face now a days is related to production and marketing of Sugarcane itself. Theextensive availability of natural water has made the sugarcane a normal cash crop for farmers. Butfrom a long time, the Sugar industry in Uttar Pradesh has now become pale due to the issues of masscorruption, mismanagement and politicization of the industry. As a result, a large number of mills havebeen closed down. A good number of mills are not even able to consume the available quantity of thesugar in the region due to the old setups and low crushing capacity. Even the private sector alsosuffers from the same plight. At one end, the demand of sugarcane has been reduced, at the other


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sale and payments of dues has made a big problem so much that sugarcane producers i.e. farmers areforced to burn the unutilized sugarcane. Ultimately, the biggest sufferers are the small and marginalfarmers. There are issues even in the procurement of sugarcane form the farmers field. The issues

related to improper measurement, extra freight charges, commissioning agents also add to the plightof farmers.

Approximately 70 to 80% of the sugarcane producing farmers are dissatisfied with the currentcircumstances. However, they are continuing the crop as they dont have other alternatives. Some ofthe big sugarcane producing farmers have started working as middlemen. They purchase sugarcanefrom small producers at the minimum support price and supply it to sugar mills on their own name.

Through its new sugar industry Promotion policy, the government of Uttar Pradesh has decided tooffer several incentives for setting up of new sugar plants. It includes the following modifications tomention the few: exemption on entry tax on sugar, repayment of administrative charges andexemption of trade tax on molasses, repayment of transport charges of sugarcane etc. The solepurpose of all these measure is to attract private investment towards the industry.

2. Sugarcane Information System SIS)Sugar mills communicate the time of harvest to the farmers. Farmers get the produce to the mills. Thiscommunication is done manually which is causing the delay in the processes. Sugarcane InformationSystem (SIS) is the system introduced by the government where the process is automated. By thissystem, both input and output are controlled. It is not a system which seeks information, it is athrowing information system. The sugar mills keep sending regular messages to the farmers about thetiming of harvest and application of the required inputs. Farmers can also seek advices from thesystem whenever they require. However, the biggest problem is that the farmers are not paid on time.The value of the system is not realized unless the farmers are paid on time. The reasons for the sameare to be found out in the research.

3. Motivation behind the projectThe Sugarcane farmers in UP face a number of problems including unavailability of supply tickets, poorfinancial status, and transportation and logistics issues while marketing their produce. This has resultedin huge losses to the farmers. This research is mainly performed in order to find the gaps that there inthere in the current system and the problems that are left untouched by SIS.

4. Development of Managerial dilemmaIn view of the current scenario of the Sugarcane farmers in Uttar Pradesh, it has been found necessaryto carry out a complete investigation, which explores the present status of the farmers in terms of theirefficiency in the operations of the entire cane procurement process and marketing. Thus themanagerial dilemma is,Is the entire cane procurement process efficient?


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5. Management problemIt is necessary to look out for the practices which are making things worse for the whole industry. So,the problem which needs immediate attention is How to weed out ill practices in sugarcane

procurement process?

6. Market Research Problem To understand the pain points of Sugarcane marketing and give suitable recommendations to addressthem

7. Research MethodologyThe team started by researching our topic The problems and prospects of sugarcane farming. We didsecondary research to explore the entire cane procurement process from harvesting of the farms toprocessing in the sugar mills. Research also included an interactive session with Professor AmitAgrahari who has significant contribution in the development and implementation of Sugarcane

information system (SIS). The management dilemma and the management problem were framed tocover all aspects of sugarcane marketing. Subsequently, the market research problem and its scopethat would be explored through this project were defined. A set of sub-research questions wereformulated to clearly analyse the market research problem.

The research designs used are exploratory research and descriptive research. Exploratory research wasconducted through primary as well as secondary sources. The team also defined hypothesis for the subresearch questions which would be analysed using data obtained from the survey. The teamformulated a checklist from the list of hypothesis, to design a questionnaire for conducting survey.

8. Research designExploratory ResearchSecondary Data analysis: Exploratory research primarily included Secondary data analysis. It wasconducted to gain first-hand information about how farmers dispose of their sugarcane produce. Theentire cane procurement process was studied to better understand the problems faced by sugarcanefarmers. The different aspects that were explored and studied under secondary analysis have beenelaborated below. Using these, problem identification for the research was initiated and formulated.

Different ways of sugarcane marketing in India Problems as well as the benefits of selling the produce to sugar mills Ill practices of the sugar mills Impact of implementation of Sugarcane Information System in UP

Conclusive ResearchPrimary data analysis will be followed with a conclusive research on the formulated hypothesis. Thesurvey data will be statistically analysed to test the test the research variables. Important variables forthe Conclusive research

Target population

Sampling frame Sampling technique


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Sample size and design

9. Sampling Design Target Population: Sugarcane producing farmers from Uttar Pradesh Sampling Unit: Village households or farmer groups in the sugarcane producing villages Sampling technique: Non probabilistic

Judgmental Sampling: Non probabilistic sampling has been assumed as the population is huge and theexhaustive list of all the farmers is very difficult to obtain. The population under study that is sugarcanefarmers is assumed to be homogenous .The villages (


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H0: Greater than or equal to 20% of the farmers sell their produce to cooperatives, third party or otherfarmersH1: Less than 20% of the farmers sell their produce to cooperatives, third party or other farmers

Variable1) Ways of marketing Sugarcane (Nominal)

Construct: Ways of marketing sugarcane/Means of selling sugarcane

2. What factors (land size, education, experience, source of investment) influence the means ofselling (sugar mill, khandsari, cooperatives, etc.) for a farmer?H0: Large scale farmer (farm size >= 4.5 acres) do not prefer to sell most of his produce to the sugarmillsH1: Large scale farmer (farm size >= 4.5 acres) prefers to sell most of his produce to the sugar mills

H0: Level of education does not affect the means in which the farmers sell their produceH1: Level of education affects the means in which the farmers sell their produce

H0: Experienced farmers (farmers who have been growing sugar cane >= 5 years) do not prefer to selltheir produce to the sugar millsH1: Experienced farmers (farmers who have been growing sugar cane >= 5 years) prefer to sell theirproduce to the sugar mills

H0: Farmers are not obligated to sell their produce to the cooperatives if they have taken a loan fromthemH1: Farmers are obligated to sell their produce to the cooperatives if they have taken a loan from them

Variables2) Farm Size (Ratio)3) Education level (Ordinal)4) No. of years in Sugarcane Farming/Experience (Ratio)5) Amount of produce (Ratio)6) Loan status(Yes/No) (Nominal)

7) Loan Amount (Ratio)Construct: Factors of influence

3. What is the awareness level of the farmers about usage of SIS and barriers that prevent themfrom using SIS? H0: All farmers in the village are not aware of SISH1: All farmers in the village are aware of SIS

H0: Less than 90% of farmers access SIS through mobile phones

H1: Greater than or equal to 90% of farmers access SIS through mobiles


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Variables8) SIS awareness (Nominal)9) Means through which SIS is accessed(Website, IVRS, SMS) (Nominal)10) Purposes for which SIS is used (Nominal)Construct: Awareness

4. What is the farmers perception about Sugarcane Information System in UP?Variables11) Information availability(Interval)12) Saves Transportation cost (Interval)13) Effectiveness of query handling (Interval)14) Accuracy of information (Interval)15) Security/ Privacy of information (Interval)16) Confidence to increase area under cultivation (Interval)17) Effectiveness of advisory services (Interval)18) Productivity increase (perception) (Interval)19) Profitability (Perception) (Interval)Construct: Image /Perception

5. What is the impact of the SIS on the entire cane procurement process?H0: SIS has not improved the realisation of better prices and transparencyH1: SIS has improved the realisation of better prices and transparency

H0: SIS has reduced the number of trips of the farmer to the sugar mills by < 75%H1: SIS has reduced the number of trips of the farmer to the sugar mills by >= 75%(A total of Rs. 522 crores were spent only on travel by 29 lakh farmers)

H0: SIS did not lead to the increase in the issue of supply ticketsH1: SIS did lead to the increase in the issue of supply tickets

Variables20) No. of trips made by farmer in a year (Before and after SIS) (Ratio)

21) Supply tickets issued (Before and after SIS) (Ratio)22) Timing of supply tickets issuance (Nominal)23) On-time payments (Interval)24) Transparency in Cane Weighing (Interval)25) Pricing for Sugarcane (Interval)26) Productivity (Perception)27) Profitability (Perception)28) Total amount of sugarcane supplied to factories (Ratio)Construct: Impact


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12. Questionnaire DesignFarmers questionnaire1. How do you market your Sugarcane produce? Also mention the percentage. (How much % foreach way, if you choose multiple options) ( RQ1, Variable 1)

Sell to sugar mills (%)

Sell to khandsaris / Set up own khandsari (%) Sell for consumption in local market (%) Sell to cooperatives (%) Others (Note down other methods and %)

2. What is your farm size (under Sugarcane cultivation)? ( RQ2, Variable 2)3. What is your education level? (RQ2, Variable 3)

o Not educatedo Primary (Class 1-5)o Secondary (Class 6-10)

o Higher Secondary (Class 11-12)o Graduationo Post-Graduation

4. Have you undergone any skill enhancement vocational training? ( RQ2, Variable 3) 5. How many years have you been farming Sugarcane? ( RQ2, Variable 4) 6. What is your average yield per cultivation cycle? ( RQ2, Variable 5) 7. Have you taken a loan for Sugarcane cultivation? ( RQ2, Variable 6)

o Yes, From where?o No

8. If yes, are you obligated to sell your produce to any cooperative due to the loan?9. What is the loan amount and interest rate? ( RQ2, Variable 7) 10. What are the logistics issues you face while transporting your crops to the mills/ purchasingcentre? (RQ6) 11. Bank Accounts and Payments (RQ6)

a. Do you have a bank account?o Yeso No

b. If No, How do you get your payments?c. What are the other issues related to bank accounts and payments?

12. Are there any grievance forums in place where the issues are addressed? (RQ6) o Yes (Details about the same)o No

If Yes, Rate your satisfaction level on the functioning of the forum (1- Least satisfied, 5- Verysatisfied)

13. Are you aware of Sugarcane Information System? (RQ3, Variable 8) o Yeso No


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If Yes, Proceed

14. Do you have any feedback or suggestions or improvements that you wish to see in SIS that(according to you) are lacking in this system? (RQ6) 15. How do you access SIS? ( RQ3, Variable 9)

Mobile (SMS)

Website

Interactive Voice Response System (IVRS) I do not use SIS

16. What uses of SIS are you aware of? ( RQ3, Variable 10) Supply ticket information Queries Advisory services Others

17. For what purposes do you SIS? ( RQ3, Variable 10)

Supply ticket information Queries Advisory services Others

18. Rate the following Statements ( RQ4, Variables 11-19)(Strongly Agree 5, Strongly disagree 1)

Parameters StronglyAgree

Agree Neutral Disagree StronglyDisagree

Dont

Know

SIS has improved information accessibility

SIS has saved transportation cost for you

Query handling in SIS is useful to you

Information that you get is accurate

You have information privacy and security

You have gained confidence to increase

area under Sugarcane cultivation after SIS

Advisory services are helpful to you

Your productivity has improved

Your profitability has increased

19. Do you think farmers can benefit from SIS?

o Yeso No, Why?


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20. How many trips do you take for information access before &after SIS? ( RQ5, Variable 20) o Before ()o After ()

21. Accessibility to supply tickets ( RQ5, Variable 21) o Before SIS ()o After SIS ()

22. What is the arrival time of supply tickets? ( RQ5, Variable 22) o Before planting of cropo After planting. Exactly at what stage?

23. Rate your satisfaction level on the following before and after SIS ( RQ5, Variable 23 to 27) (Least Satisfied 1, Very Satisfied 5)

o Pricing for Sugarcaneo On-time paymentso Transparency in cane weighingo Productivityo Profitability

DemographicsAge:

Gender:

Household size:

Exploratory research questionnaire for sugar mills1. What is the number of interaction between sugar mill and farmers before/after

implementation of SIS?2. What have been the major impacts of SIS on the sugarcane farmers and sugar mills?3. Has there been any increase in quantity of sugarcane procured?4. What sort of information is shared by SIS?5. Do farmers contact you for any information/guidance regarding the farming?

o If yes, what information do they seek?6. Are there any delays in the payments made to the farmers?

o If yes, what are the reasons for delay in payments to the farmers?o If no, how are you managing the process efficiently and quickly?

7. What are the challenges that you face in the implementation of SIS?8. Do you have any feedback or suggestions or improvements that you wish to see in SIS that(according to you) are lacking in this system?

13. Data AnalysisTechnique Variables Research Question Discriminant Analysis 2,3,4,5,6,7 RQ2Paired t-test 20 to 27 RQ5Factor Analysis 11 to 19 RQ4

Descriptive Statistics(Mean) 11 to 19 RQ4

Dispersion Measures 11 to 19 RQ4


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(Standard Deviation)Mode 1,8,9 RQ1, RQ3Chi square Test 1,8 RQ1, RQ3Text Analytics Open Ended

QuestionsRQ6

Frequency distribution 1,8,9,10,Demographics

RQ3

Discriminant AnalysisDiscriminant Analysis will be used to find out the most important factors that determine the ways inwhich the farmers market their produce. The ways (Sugar mills, Khandsari, third parties) would be usedas the non-metric dependent variable and the factors would be used as metric independent variables.

Paired T-TestDependence T-tests will be used if the means between two groups of ratings (before and after SISimplementation) are significantly different.

Descriptive StatisticsMean and median scores will be used to find out the average perception level of the farmers in thevillage about SIS for each variable.

Factor AnalysisFactor analysis will be performed to find if the variables could be grouped into some factors /constructs and also to find out the importance of each variable.

Dispersion MeasuresRange and Standard deviation will be used to find the variability of the responses for a particular

variable. This is mainly used to find the presence of any outliers.Frequency Distribution (Histogram)This will be used to find out the purposes for which SIS is used by most farmers and some otherapplications of SIS that are not utilized by farmers due to various reasons. This will also be used fordemographics data.

Text AnalyticsText analytics tools will be used to find out the most used word in the respondents answers thereby

finding their frequencies of occurrences. This would be used to analyze the open ended questions.

14. Primary ResearchPrimary Data collectionFor the primary research, we visited 5 villages and 3 sugar mills in Shahjahanpur district of East UP. Dueto the non-seasonality of khandsari and also since khandsari units were not prevalent in Shahjahanpur,we could not interact with any of the khandsari units. However, we got an opportunity to talk to fewfarmers who set up their own khandsaris. The total sample size surveyed is 128. 88 of the sample arefrom the villages who supply their produce to the private mills where SIS has been implemented.Hence, for the research questions where the SIS has been analyzed, the sample size considered was 88,instead of 128.


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The villages visited for primary research:

Dakiya Tiwari (Nigohi mill) Bharatpur (Tilhar mill) Milkipur (Tilhar mill) Mohanpur (Roza mill)

Roza Yakubpur (Roza Mill)The questionnaire was prepared with a mixture of open ended questions, alternative choice and ratingthe parameters based on their perception. The sugar mills visited for primary research:

Dalmia Sugar mills Private (Nigohi) Tilhar - co-operative mill (Tilhar) Roza mill Birla Group (Roza)

15. Village StudyBharatpur, Tilhar

Historical Timeline

Institutional Map

1938 Water Canal

1958 School

1970 Diesel Engine

1988 First Tractor

1990 Television

2004 Tubewell

2006 Mobile Phones

2007 Electricity


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Resource Map


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Dakiya Tiwari, Nigohi

Historical timeline

Institutional Map

1956 Primary School

1965 Water Canal

1970 Electricity supply

1975 Hospital

1980 Gas Connection

1987 Television

2000 ITC E-choupal, Landline phone

2001 Computer

2003 Mobile Phones


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Resource Map


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Mohanpur, Roza

Historical Timeline

Institutional Map

1930 Water Canal

1960 Primary School

1980 Warehouse

1995 Gramin Bank, Landline Phone

2000 Market ,Liquor shop

2001 Gas connection

2003 Mobile Phones


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Resource Map


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16. Comparative analysis of the villagesParameters\Village Dakiya Tiwari Bharatpur Mohanpur

Educational facilitiesTill High School Till Middle School

(8 th Std)Till High School

Health facilitiesAvailable Not available Private clinic is

available & medicalstore not available

Water availabilityPositive with handpumps & wells

Positive with handpumps & wells

Positive with handpumps & wells

Households withtoilet facilities

70% 30% 80%

Bank facilitiesGrameen Bank &Bank of Baroda

None Bank of Baroda

NGOs/informal

organizations

None None None

Educational level

Most of them areeducated till 8 th Std& few till 12 th Std;High literacy for girlsas well & decentnumber of graduates

Most of them areeducated till 5 th Std;Low literacy rate &no girl education

Most of them areeducated till 10 th Std;Decent number ofgraduates

Other Livelihoodsources

Government service& private jobs

Government service Government service& private jobs

Major cropscultivated

Sugarcane (95%) Sugarcane (90%) Wheat (80%)

Livestock

500 cattle with 200milking cattle; 300Buffalos with 200milking buffalos; 200goat & 250 sheep

15 cattle; 150Buffalos, 25 goat &10 lakh fisheries

50 cattle; 50 buffalo& 15 sheep

ProblemsElectricity, Castedifferentiation

Castedifferentiation, roadconnectivity

Mobile connectivity& credit facility

From the above table, it can be concluded that Dakiya Tiwari village has better educationfacilities than the other two villages. The educational institutes are located at a distance from theplaces making it difficult for them to pursue their higher education. It is also observed that notall households have toilet facilities. This tells us that the social status of the villages is still low.Lack of proper sanitation is causing health problems. Bharatpur doesnt have health facilities aswell and the road connectivity to this place is poor. The villagers are facing issues travelling tothe towns, especially the women. It has also been observed that women are mostly pertained tohousehold activities and seed sowing activities only. People in Dakiya Tiwari are sending theirchildren to towns for higher education, whereas the other villages are not willing to send their


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offspring to towns. Instead they want educational institutions to be established near to theirplace.

Developmental activities that the villages are looking for

Dakiya Tiwari Bharatpur MohanpurEducation institutes till

Degree

High school Electricity

Better hospitals Medical store Mobile tower

Electricity Health centres Industries for jobsBus stop Local markets Canals

Medical camps College

Social Issues in the villagesThe caste system was very prevalent in the villages, the villages surveyed were dominated by Thakurs

or Pandit communities. The Gram Pradhan, the progressive farmers and all other opulent householdswere belonging to upper castes signifying that Social status itself represented the financial strengthof households. In some villages caste system had dire consequences with lower caste people forcedto reside on outskirts of the village.

A lower status to the females was also visible. The villages had a low female literacy rate, smallproportion of girls (1:3 approx.) in total number graduates and postgraduates in the villages. The girlswere married at a young age, most of them were housewives. They were deprived of education andburden of household chores expected from them.


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17. Results of Exploratory Research in the millsProcedure followed by millsSugar mills start their work from April, i.e. 2 months before the sugarcane season commences. All themills maintain a proper database of the farmers details in their vicinity. A detailed calendar is preparedfor individual farmer based on their production capacity.

Production capacity is estimated through field survey by measuring:

Area under cultivation Variety of crop Average of last two years production Factory requirement

Final product capacity of the mill is estimated as 85% of total sugarcane production as some farmersopt to grow vegetables for crop rotation after two ratoons. The farmers need to register themselveswith the mills by providing their details to them. Based on their production capacity, supply tickets foreach farmer is estimated and the same information is communicated to the farmers. The farmers aregiven 15 days time to verify their details. After the calendar has been finalized, the farmers start their

cultivation. Sugar mills provide complete support to the farmers with respect to any information orsupport they require regarding farming. The supply tickets are sent to the farmers 4 days before theweighing process starts. The weighing process is highly transparent.

Issues with sugarcane farming Poor cane yield due to cropping of mid maturity and late maturity varieties Lower sugar recovery Delayed payments to farmers

Steps required to improve efficiency of sugarcane farming Commercialize early varieties of sugarcane for cultivation Linkage between the FRP and sugarcane pricing strategies

18. SIS implementation across millsThe supply tickets are sent via SMS 4 days before the weighing process. Farmers transport theirproduce to the mills using trucks, bullock carts or tractors. The traffic on the roads and the weather

forecast is also sent to farmers during the transportation period. The payment information is also sentvia SMS to the farmers.

This is a framework which has been provided by the government to be mandatorily implemented by allthe sugar mills. The implementation cost of this system is INR 0. However, the cost that is incurred inexecution of this system is the SMS cost incurred. Government offers to pay 50% of this cost as well. Inspite of the above facts, SIS system is not fully functional in all the mills. Many mills have implementedonly few services of SIS.

Dalmia chini mills, NigohiRespondent: Mr. Palival, General Manager


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Dalmia chini mills in Nigohi, Shahjahanpur contributes to 1% of total UP sugar production. Productionis totally on recovery basis. Early varieties of sugarcane are procured predominantly. Sugar mills runsat a capacity of 80% throughout the season. Issuance of supply tickets based on variety of crop.

Functional facts of the mill About 12,000 labour required per day during sugarcane harvesting season

Sugarcane procurement within the radius of 15 km

Power production is 90 MW per annum The payment made to the farmers in the previous year was INR 250 crores, which

averages to INR 80,000 per family. This value is on an average 40% more compared toother crops

Byproducts of Sugarcane and Marketing

100% electricity derived through cogeneration of electricity, surplus is sold to power grid Bagasse is sold to paper mills and fertilizer companies CO2 is sold to the companies for coolant production and cold chains

SIS implementationNigohi mills has implemented all the services of SIS. They also monitor the process regularly.Additional to the services of SIS, they installed a camera at the weighing area which can be accessedby the farmers online. This way, they can get to know the traffic and plan their travel accordingly.However, this service is used by not many farmers.

Consists of master data which includes demographic, crop specific, historic information Calendar planning based on pre calendar SMS activity based Query management service IVRS online voice query management on a toll free number Enquiry on supply ticket issuance, status Locating the area under cultivation of sugarcane for an individual farmer Information on government schemes

Impact of SIS Positive impact on recovery Timely intent Consultancy on soil and crop health, fertilizer inputs, cane quality

The Kisan Sahkari Chini Mills Ltd., TilharThis is a cooperative mill. Farmers need to register themselves with the mill by paying the membershipfee of INR 211. SIS is not implemented by this mill. This mill claims that they are running in losses and

SugarcaneByproducts

Electricity Ethanol Bagasse Molasses Press Mud CO 2


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24

are lacking in funds to implement SIS. Each supply ticket has a fortnight validity. Priority of supplyticket issuance is based on the variety of crop grown. They give preference to the small farmers and tryto collect their produce in the initial days of the crushing.

Services provided to the farmers 50% transportation subsidy on the seed distribution

Establishment of procurement centres for far off villages as their radius is large

Procurement of the late variety of produce as per the government rule Fertilizer, crop health services at the procurement centres

19. Challenges faced in implementing SISThe framework of SIS is provided by the government. However, not all sugar mills did implement allthe functionalities. From our primary and secondary survey, we discovered that most of the privatemills have implemented SIS and have streamlined their process. Few private mills have implementedonly the supply ticket messaging system. The cooperative mills, on the other side have not

implemented SIS at all.

The major challenge the mills initially faced was the mobile connectivity issues. Though all the farmerspossess a mobile phone. They still face network connectivity issues in the interior villages. The purposeof implementing this system is to reduce the number of trips for the farmer. However, few farmerstake time to adapt themselves to the new system. They travel to the mills in spite of receiving themessage.

20. Comparison of Cost of production

Dalmia Mill is 50% more efficient in the Packaging of Sugar Price realization of By-Products Molasses and bagasse by Dalmia Mill is 6.54%, 68.77% higherthan the Cooperative Mill

Cooperative Mill spends about 2 times more on Power, 8 times more on Fuel for operations Salary and wages given to the employees at the Cooperative Mill is at most 4 times greater

compare to that in the private mill (Dalmia). Private Mill leverages the contract labor forcewhile Cooperative mills are bound to have permanent employees who are paid off during offseason

Cooperative Mills are liable to pay 14.33 Lakhs for Government guarantee fee whereas the

private mills are free from these charges Dalmia Mill are 1.5 times more efficient in the cost of production as compared to the

Cooperative Mill

Dalmias investment in the Cane development process stands out at 2.712 Cr wher eas theCooperative Mill investment is just 2.07 Lakhs

The detailed cost comparison has been displayed in the Appendix.

21. Payments issue

The major problems faced by the sugarcane farmers is the delay of payments. The direct and indirecttaxes borne by the mills are high. Apart from this, government takes 34% of the molasses produced by


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the mills. The private mills claim that this is one of the reasons that the industry is becoming weak.Many of the farmers are still producing the plant varieties which are not acceptable in the market. Themills are obligated to procure these varieties in the interest of the farmers. The mills are not able torealize the cost of sugar production of these varieties. Many of the mills are cutting down their costsby generating the electricity that is required by the plant. Government takes into consideration onlythe cost of production which is around INR 54 for the cooperative mills and INR 34 for the private

mills. Hence, the prices are set considering these costs. The detailed cost analysis is attached to theend of the report. The cooperative mills are established more than 50 years back and the machinery isnot properly updated. This is resulting in the increase in cost and decrease in the sugar quantityproduction. Hence, the cooperative mills are not able to cover up their losses. The lack ofsynchronization between the sugarcane and sugar prices is also creating issues for the mills.

An interesting aspect that was discovered during our research was that the excess in production of thesugarcane is also creating issues in the market. The mills are obligated to procure and operate formore duration. After the stipulated time, the sugar content decreases. However, mills are obligated to

pay the same price for the cane procured during this time as well.All these issues are the major reasons for the delay in payment to the farmers. The delay varies from 3months to 1 year as well. Farmers are taking loans from banks for their survival as they are not beingpaid on time. This is further adding up to their problems. Keeping in view of the farmers problems,Supreme Court passed a judgment to pay the dues immediately to the farmers. In case of delay inpayments exceeding 14 days, the mills are penalized with 15% interest.

22. Other problems exploredOut of the three mills visited, only the cooperative mill has established purchase centers. From thesecondary research, we discovered the fact that rebate is made by the Central government from theminimum price or a price agreed upon. The rebate is made for transport to both khandsaris and sugarmills. Many of the farmers expressed their concern regarding the poor road connectivity to the sugarmills. During our visit, we found that the roads were half broken and it would be difficult for bullockcarts to travel on that road, making it a serious problem to ponder upon.

All the farmers who were surveyed use flood irrigation method. This suggests that drip irrigationmethod is not rampant in UP. The same concern was raised by Prof. Amit Agrahari during oursecondary research. The soil nutrients are being washed away as a result of this. From our primary

research, we found out that the farmers feel drip has to be used only if there is water scarcity. Sugarmills have been giving advisory services regarding the cultivation, but not regarding the irrigation typesand their benefits. Tamil Nadu Chief Minister, Ms. Jayalalitha recently announced incentives to thesugarcane farmers who use drip irrigation method. This step was taken in order to create awarenessamongst the farmers. Similar steps have to be taken in UP as well considering the misconception ofthe farmers. This would not only preserve the soil nutrients, but also make the cultivation sustainablefor future by water conservation.


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Intercepts of Interview with Director of Sugarcane Research Council, Shahjahanpur (Dr.Bakshiram)

Problems For past 3 years the price rise in FRP was on an average Rs. 34 per quintal of sugarcane Productivity is very low due to rejected varieties of sugarcane being cultivated which

constitutes about 17% of the total sugarcane production in the state

Average yield of sugarcane in Uttar Pradesh is 60 tonnes per hectare whereas the average yieldin Maharashtra is at 80 tonnes per hectare

In the last two years the area under sugarcane cultivation has reduced by approximately 8 to 9percent

Current payment due to the farmers stand soaring high at INR 60 billion Cost of sugarcane cultivation, sugar production cost also rises marginally leading to a shift

demand patterns for UP sugar as the cost is lower at Maharastra, Tamil Nadu

Does not support the cane development process

Recommendations Govt. should invest more on R&D to develop a sugarcane variety which suits the agro climatic

conditions of Uttar Pradesh

Eliminate the rejected varieties of sugarcane and promote high yielding varieties Intercropping of crops which have stable prices in the market irrespective of demand supply

fluctuations

23. Data Analysis and ResultsWays of marketing Sugarcane in UPIn Shahjahanpur, most of the farmers sell their produce to the Sugar mills. The cooperative mills areforced to take all the produce from the farmers. But in Nigohi and Roza, when the farmers do not getsupply tickets due to less produce, they sell it to the khandsaris/Kohlus. There are very few Jaggeryunits in Shahjahanpur. West UP has more khandsari units that East.

The Chi Square test is performed to check if the sample proportions are same as that of the population.Lower level of significance indicates that the null hypothesis is rejected and the results are as below.

119

12 0 30

50

100

150

Sugar Mills Khandsari/Kohlu

Local Market Others

Ways of marketing sugarcane


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Results

More than 70% of farmers sell their produce to sugar mills Less than 10% of farmers set up/ Sell to their own Kohlus (Khandsaris) Less than 20% of farmers sell their produce to third parties and other big farmers

Factors that influence the means of sellingDiscriminant analysis is performed to identify the most important variables that influence farmers in

determining the means of selling.Tests of Equality of Group Means

Wilks' Lambda F df1 df2 Sig.

Size .965 .531 2 29 .086

Education .985 .216 2 29 .807

Experience .987 .189 2 29 .829

Loan .966 .515 2 29 .603

The table shows that none of the factors except farm size are significant. Some farmers who have avery small portion of their land under sugarcane cultivation tend to sell their produce to the khandsarisand for other parties or big farmers. Some very large scale farmers who have more than 100 acres alsoset up their own khandsari units to produce Jaggery from some of their produce. But they sellmaximum percentage of their produce to the sugar mills only.

Pooled Within-Groups Matrices

Size Education Experience Loan

Correlation

Size 1.000 .454 .816 -.597

Education .454 1.000 .487 -.232

Experience .816 .487 1.000 -.306

Loan -.597 -.232 -.306 1.000

Variables Size and Experience are highly correlated. This is because farmers who are involved inSugarcane farming as a family occupation for many generations tend to have much experience and alsothey have huge farm land which have been passes on from their elder generation.

Results

Farm size is the only factor that influences the means of selling Not all small farmers set up khandsari units, but only the farmers who do not get supply tickets

sell their produce through other means


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Average yield per cultivation cycleThe average yield is around 600-700 quintals per hectare for a normal farmer. But for very large scalefarmers the yield goes as high as about 1500 quintals per hectare. This is because those farmers aremostly highly experienced and they set up testing fields for different varieties. Economies of scale alsoplays an important role.

Awareness of SISAll the farmers in Nigohi and Rosa are aware of SIS. Tilhar mill has not implemented SIS and hence thefarmers do not know about SIS. Awareness is dependent on the mills that the farmers are registeredwith.

Farmers in Nigohi access SIS through Mobiles mostly. Nigohi also has a toll free number for IVRS access.Some farmers also access through the website.

In all the villages, 100% of the farmers have access to mobile phones. At least one person in thehousehold owned a mobile. All the farmers get supply tickets information about SIS and few farmersalso use advisory services. Also, farmers use SIS mainly to get supply tickets information. However,

farmers in Nigohi also use advisory services effectively.

Results

All farmers have access to mobile phones, even though connectivity is an issue Farmers registered with private mills that have implemented SIS are well aware of SIS

Farmers perception of SIS Comparison across millsDescriptive Statistics results show the average level of satisfaction of various features of SIS.

Descriptive Statistics

Mean Std. Deviation Analysis NInfo 3.83 .874 30

0

50

100

Mobile IVRS Website Do not useSIS

SIS Access for Nigohi

020406080

100

Supply tickets Queries AdvisoryServices

Payment Info

SIS Information for Nigohi


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Tcost 4.30 .915 30

Query 2.97 .890 30

Accuracy 4.07 .944 30

Security 4.23 .817 30

Area 2.37 1.189 30

Advisory 4.00 .743 30

Productivity 3.60 .675 30Profitability 3.23 1.135 30

Results

The farmers are well satisfied with the information availability parameter. They mentioned thatthe fact of getting information at their convenience is saving their time and reducing theirtension quotient.

Advisory services have been handled effectively by the mills but farmers do not use the queryservice much.

The information that was provided to the farmers turned out to be accurate and the farmersare happy about the same. The security and privacy of information of farmers have been wellhandled by the system. The farmers feel that their information is being maintained withsecurity.

Farmers travel to mills for two reasons. One to seek information and the other to harvest theirproduce. The number of trips for harvesting produce depends on their yield. However, due tothe messaging services provided by SIS regarding the traffic, waiting time has been reduced forthe farmers. On the other hand, in spite of receiving messages regarding supply ticket, fewfarmers travel to mill for hard copy. It would take time for them to adapt to this method.

The major problem faced by the farmers is the payments delay issue. This has a major impacton their confidence to increase the area under cultivation. In spite of SIS and mills support, thisconfidence level is not high. Due to the time being saved and appropriate messages, farmersperceive that their production & profitability has been positively impacted by SIS.

Factor Analysis is performed to reduce the variables into certain factors. The factors identified are

Factor 1 Accuracy, Security Factor 2 Query, Advisory, Productivity Factor 3 Profitability, Transportation cost

Rotated Component Matrix a

Component

1 2 3 4

Info .293 -.430 -.558 .126

Tcost .265 .407 .810 .146

Query .420 .749 -.170 -.346

Accuracy .829 .005 .209 -.019

Security .790 .110 -.130 .241

Area .045 -.102 .072 -.661

Advisory .276 -.707 .104 -.297

Productivity -.435 .791 .092 .157


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Profitability .014 .089 -.876 .033

Both the mills have a higher rating on Factor 1 showing that the information sent by the system isaccurate and secure. The system as such does not have any loopholes. Nigohi Mill has a higher ratingon Factor 2 whereas Roza has a very low rating. Relationship management with the farmers is high inNigohi. The mill provides information about irrigation techniques, fertilizer and pesticide techniques.

Farmers registered with both the mills have the perception that SIS has reduced their transportationcost significantly and hence they are more profitable.

ResultsNigohi Dalmia Mills Roza Birla Group

Advisory services are highly satisfactory. Information security and accuracy is also

very high. Bank account numbers of thefarmers have been encoded for displayand only the farmer can login to hisaccount using his unique ID andpassword to see the information

Farmers only get information aboutsupply tickets and advisory andquery features have not beenimplemented.

Farmers perceive advisory servicesto have huge impact on theproductivity

Impact of SISFrom our research, we discovered that implementation of SIS had no role in the realization of prices asthe prices were set by the government. Hence, that hypothesis has been nullified.

a. SIS has reduced the number of trips to the sugar mills >=75%.Paired t test has been used for testing the hypotheses on impact. Before implementing SIS, the supplytickets were distributed manually. This would obviously not be an effective way of distribution and

delays would creep in. Farmers travelled to the mills in case of delay or loss of the supply tickets on theway. This increased the number of trips to the mills for the farmers. However, post SIS, the farmerrarely travelled for supply tickets as the message was being sent on time by the mills. The difference inthe mean values shows the impact of SIS on the number of trips. The t-value = 23.688 >> 2.3(significance 95%). This implies that the test significance is high and can conclude that SIS has reducedthe number of trips to the sugar mills >=75%.

Paired Samples Statistics

Mean N Std. Deviation Std. Error Mean

Pair 1 before 4.4125 88 1.00245 .11208

after .8875 88 .79546 .08893

Paired Samples Test

Paired Differences

t df Sig. (2-tailed)Mean

Std.

Deviation

Std. Error

Mean

95% Confidence Interval of the Difference

Lower Upper


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Paired Samples Test

Paired Differences

t df Sig. (2-tailed)Mean

Std.

Deviation

Std. Error

Mean

95% Confidence Interval of the Difference

Lower Upper

Pair 1 before -

after

3.52500 1.33098 .14881 3.22880 3.82120 23.688 87 .000

b. SIS did lead to the increase in the issue of supply ticketsOne feature of SIS was verifying the land size using GPS system. The scope of wrong issuance of supplytickets has reduced after this system as many intermediaries used to pop in during the land surveybefore SIS. It cannot be concluded that SIS led to increase in the issue of supply tickets. Rather it can beconcluded that it led to the correct issue of supply tickets. We could not apply statistical tools for this

hypothesis as SIS is implemented at the mills end and we surveyed only 3 sugar mills. The aboveconclusion has been substantiated by the response from sugar mills.

c. Paired t-test for productivity:



Pair 1 before 3.6000 88 .49299 .05512

after 4.4750 88 .50253 .05618

Paired Samples Test

Paired Differences

t df

Sig. (2-

tailed)Mean

Std.

Deviation

Std. Error

Mean

95% Confidence Interval of the

Difference

Lower Upper

Pair 1 before

- after

-

.87500.68205 .07626 -1.02678 -.72322 -11.475 87 .000

The negative t-value implies that the sample mean of ratings before the implementation is less thanthe mean of ratings after the implementation. This implies that the perception of the farmers ispositive that the productivity has been effected by SIS. The p-value is low, hence it can be concludedthat the significance is high.

d. Paired t-test for Profitability



Pair 1 before 2.9375 88 .75211 .08409

after 4.5000 88 .50315 .05625


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Paired Samples Test

Paired Differences

t df Sig. (2-tailed)Mean Std. Deviation

Std. Error

Mean

95% Confidence Interval of

the Difference

Lower Upper

Pair 1 before - after -1.56250 .88366 .09880 -1.75915 -1.36585 -15.815 87 .000

Results

SIS has created a major impact on farmers perception The implementation of SIS has not been 100% in spite of the mandatory rule. The success of SIS

mostly depends on the features that are used to streamline the process.

Demographics

Most farmers live as a joint family and hence the average house hold size is around 6 to 10. Most of the

farmers were middle aged around 26-60.

24. ConclusionThe major issue with the farmers is delay of payments which in turn reduces the confidence tocultivate Sugarcane. SIS has brought about significant impact in the procurement process by reducingthe information gap between the farmers and the Sugar mills. But the implementation of SIS totallydepends on the mills and hence the profitability, development and status of the farmers totallydepends on the mills that they supply to.

Establishing procurement centers at the major villages would reduce the traffic and waiting time forthe farmers in villages near the mills. As many farmers informed that they are facing problemstransporting the produce due to the poor road connectivity. Apart from this, the government and thesugar mills must come on to a common platform to educate the sugarcane farmers regarding thebenefits of drip irrigation.

0

10

20

30

40

50

61

Age

0

20

40

60

80

100

10

Household Size


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25. References1. http://www.indiansugar.com/

2. Paper on Economics of Farming Systems in Uttar Pradesh by S.P. Singh*, B. GangwarandM.P. Singh

3. Sugarcane Information System Case study by Governance Knowledge Centre

4. http://www.upcane.org/sis/en/index.asp

5. http://www.kisaan.net/

26. AppendixSI.No Particulars PRIVATE MILL (NIGOHI) COOPERATIVE MILL (TILHAR) Variation

AmountRs. Lacs

Per Qtlon Cane

Per QtlonSugar

AmountRs. Lacs

Per Qtlon Cane

Per QtlonSugar

A Cane Cost1 Cane Cost

23,129.59 273.82 2,913.07 7,417.90 273.98 3,616.42 (703.35)2 Purchase tax

169.56 2.01 21.36 13.87 0.51 6.76 14.603 Cane Commission

425.67 5.04 53.61 34.41 1.27 16.77 36.844 Cane Marketing

7.62 0.09 0.96 7.94 0.29 3.87 (2.91)5 Cane

Development 271.20 3.21 34.16 2.07 0.08 1.01 33.15

6 Transportation &Loading Exp. 635.26 7.52 80.01 134.49 4.97 65.57 14.447 Cane Outcentre

exp. 58.39 0.69 7.35 8.40 0.31 4.10 3.25TOTAL (A)

24,697.29 292.38 3,110.52 7,619.08 281.41 3,714.50 (603.98)B Other Expenses1 Manufacturing

exp. 211.07 2.50 26.58 53.37 1.97 26.02 0.562 Chemicals

- - - - - - -

3 Packaging Cost375.52 4.45 47.30 144.08 5.32 70.24 (22.94)

4 Sugar Handling83.36 0.99 10.50 7.85 0.29 3.83 6.67

C Power & Fuel103.79 1.23 13.07 78.29 2.89 38.17 (25.10)

1 Diesel (Inc OffSeason Power) 29.77 0.35 3.75 68.25 2.52 33.27 (29.52)

2 Deisel GeneratorSet Repairing 3.03 0.11 1.48 (1.48)

3 Bagasse Handling

56.48 0.67 7.11 5.09 0.19 2.48 4.634 Ash Handling

17.53 0.21 2.21 1.92 0.07 0.94 1.27
http://www.indiansugar.com/http://www.indiansugar.com/http://www.indiansugar.com/http://www.upcane.org/sis/en/index.asphttp://www.upcane.org/sis/en/index.asphttp://www.upcane.org/sis/en/index.asphttp://www.kisaan.net/http://www.kisaan.net/http://www.kisaan.net/http://www.kisaan.net/http://www.upcane.org/sis/en/index.asphttp://www.indiansugar.com/


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D Salary & Wages950.38 11.25 119.70 1,135.97 41.96 553.82 (434.12)

E Staff Welfare69.41 0.82 8.74 4.41 0.16 2.15 6.59

F Medical Expenses7.16 0.08 0.90 18.78 0.69 9.16 (8.26)

G Security

48.09 0.57 6.06 7.71 0.28 3.76 2.30H Repair &Maintenance - P &M

372.71 4.41 46.94 217.73 8.04 106.15 (59.21)

I Repair &Maintenance -Building

49.57 0.59 6.24 27.43 1.01 13.37 (7.13)

J Subscription toFederation &Other

9.55 0.11 1.20 79.00 2.92 38.51 (37.31)

K Govt. Guarantee

fees - - - 29.40 1.09 14.33 (14.33)L Insurance

9.02 0.11 1.14 10.47 0.39 5.10 (3.96)M Travel

11.71 0.14 1.48 4.21 0.16 2.05 (0.57)N Vehicle expense

57.63 0.68 7.26 6.12 0.23 2.98 4.28O Advertisement

2.93 0.03 0.37 6.06 0.22 2.95 (2.58)P Rent, Rates &

Taxes 11.30 0.13 1.42 4.21 0.16 2.05 (0.63)

Q OtherAdministrative exp. 140.66 1.67 17.72 13.50 0.50 6.58 11.14

R Depreciation733.72 8.69 92.41 29.70 1.10 14.48 77.93

S TOTAL (B to R)3,247.56 38.45 409.02 1,878.29 69.37 915.72 (506.70)

T TOTAL (A + S)27,944.84 330.82 3,519.53 9,497.36 350.79 4,630.22 (1,110.69)

Less: Realisation of By-ProductsU Molasses

1,470.65 17.41 185.22 356.60 13.17 173.85 11.37V Bagasse

473.29 5.60 59.61 72.44 2.68 35.32 24.29W Pressmud

10.13 0.12 1.28 7.76 0.29 3.78 (2.50)X TOTAL (U to W)

1,954.08 23.13 246.11 436.80 16.13 212.95 33.16Y GRAND TOTAL (T-

X) 25,990.76 307.69 3,273.42 9,060.56 334.66 4,417.27 (1,143.85)ADD: Interest & Other expenses

1 Sugar Loading

10.60 0.13 1.33 1.63 0.06 0.79 0.542 Commission on

Sugar Sale 27.56 0.33 3.47 10.42 0.38 5.08 (1.61)


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3 Interest - WorkingCapital 944.70 11.18 118.98 297.52 10.99 145.05 (26.07)

4 Interest - TermLoan 683.32 8.09 86.06 1,586.16 58.59 773.30 (687.24)

5 Total of (1 to 4)1,666.18 19.73 209.84 1,895.73 70.02 924.22 (714.38)

NET TOTAL (Y+5)

27,656.94 327.42 3,483.26 10,956.29 404.68 5,341.49 (1,858.23)Net total of PerQtl sugar of Nigohimill over Tilhar mill

1.53

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Group5_Sugarcane Marketing in UP

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