Contemporary Issues

Economy of Maharashtra (Agricultural)

Names
Manas Manohar Yunus Badgujar Harshada Ahire Nupura Deshpande Anil Rajput Vipul Barde Arvind Chawda Ajinkya Sonar

Roll No.
47 33 35 30 32 34 31 29

Sr. no.
1 2 3 4 5 6 7 8 9 10 11

Table of content
An Introduction to Maharashtra economy Chief agriculture patterns MIDC SEZ (Special Economic Zone) Shoshit Shetkari Kashtkari Kamgar Mukti Sangharsh and Sharad Joshi Shetkari Sanghatana Co Operative Movement Co-operative banks Cotton cooperatives Milk Operation flood Sugar cooperatives

Acknowledgement
We hereby regard our sincere thanks to Prof. Sangeeta Das(Joshi Bedekar College) under whose guidance this project was undertaken which has really explored our real talent. It has been really knowledge sharing experience to make this project. We would also like to thanks our parents who have helped us throughout our project. We would like to thank our friends for their generous support.

An Introduction to Maharashtra economy

Nearly 55 % of the states population depends on the agriculture. It is the single largest provider employment rural population. However, the contribution of the agriculture is reducing despite huge spending on agriculture, because of unfavorable agro climatic situation and faster growth of services sector. The yield per hectare (924 kg) of food grains for 05-06 was far below the national average. The growth of the agriculture is important for sustaining food security and improving rural standard of living. Both central and state government are helping in mobilizing resources, creating infrastructure, facilitating easy availability of inputs, supporting research and technology development. The national development council has past the resolution in May 2007 to achieve; 4% growth rate through the Rashtriya Krishi Vikas Yojna: Preparations of agricultural, wealth and allied industry plans for the entire states. Set up micro irrigation system Increase production of cereals, pulses and oilseeds. To enhance the farmers income through adopting allied activities like animal rearing, dairy development, fishing and sericulture along with agriculture. Help farmers in the marketing of the produce to get fair price. The national bank of agriculture performs the pivotal role in the development of agriculture. The public and private sector plays significant role in distributing of hybrid and improved, certified and quality seeds of various crops. Organic farming is a welcome alternative. It reduces the use of chemical fertilizers, pesticides and herbicides and reduces the cost of cultivation. A number of major, medium minor irrigation perfects have been taken up by the state. The Bharat Nirman Yojna as announced to develop infrastructure in rural areas. Food security mission was launched to increase the production of rice, wheat and pulses. From rabi season. The state government announced a special package of Rs 1,075 crores for 3 yrs and established the Vasantrao Naik Sheti Swavlamban Mission was launched to deal with the problem of suicide of farmers in Vidharbha region. The Prime Minister also announced special rehabitation package of Rs 3750 crores for the same area.

Chief agriculture patterns

Maharashtra as compared to other states is one of the top economic performers with respect to per capita income. However this fact conceals the enormous urban-rural contrast and regional disparities. Agriculture emerges as the key sector in the state especially with reference to the workforce (55% are engaged in agriculture). Over the years, agriculture's contribution to income has rapidly declined but the workforce continues to perpetuate indicating limited employment opportunities in other sectors. In other words, Maharashtras economy is predominantly agrarian and barring a few districts (Mumbai, Pune, Thane and Nagpur) a major portion of the workforce is predominantly dependent on agriculture for a livelihood and the incidence of poverty is highest among the agricultural laborers. Agriculture in Maharashtra is heavily dependent on the monsoons and hardly 15% of the gross crop area is irrigated and 24% is drought-prone. Maharashtra introduced some land reforms after 1947 and Tenancy Acts were amended from time to time. Consequently, some tenants became owners of the land. The small and marginal farmers however had very small land holdings. Agriculture in Maharashtra is dominated by food grains, mainly Jawar. This crop is characterized by a low yield and almost entirely un-irrigated. There has been a decline in the growth of cereals while the area under pulses has increased. Most notably, there has been a shift towards commercial crops such as oil seeds, cotton and sugarcane. This has been mainly due to the government policy which assures prices for sugarcane and cotton. For this reason, Maharashtra contributes only 5.8% of food grain production in the country. With respect to the non-food grains with the exception of sugarcane, Maharashtra has lower yields than the national average. This is mainly due to lack of irrigation facilities and other inputs like improved seeds, fertilizers, machinery and so on. So far as the growth rate of sugarcane is concerned, it is negative because this crop is entirely irrigated and requires a lot of water. Major institutional finance is being given to farming through commercial banks and credit cooperatives. But due to the adverse environment and unfavorable government policy, loan advances have shown bad debts. Besides no value crops, land degradation is a major problem and the excessive withdrawal of ground water for wells has led to water scarcity. Attempts have been made by the government to reformulate policies and create a suitable environment through land reforms. The private sector is being encouraged to participate and invest in agriculture. It is necessary to generate supplementary employment for farmers since agriculture is a seasonal occupation. Maharashtra is diversifying into horticulture, animal husbandry, fishery and sericulture. These are expected to give the farmers other options to make a living. In Maharashtra, most agriculture commodities are traded in regulated markets. But selected crops like cotton and sugarcane are marketed through state intervention. The government of Maharashtra has been a strong advocate of cooperative marketing of agricultural produce.

MIDC
Maharashtra Industrial Development Corporation (MIDC) is the primary industrial infrastructure development agency of the Maharashtra Government. Constituted under the Maharashtra Industrial st Development Act, 1961, MIDC was established on 1 August, 1962, with the basic objective of setting up industrial areas with a provision of industrial infrastructure all over the state for planned and systematic industrial development. MIDC has played a vital role in the development of industrial infrastructure in the state of Maharashtra. As the state steps into the next millennium, MIDC lives up to its motto 'Udyamat Sakal Samruddhi' (Prosperity to all through industrialization). Indeed, in the endeavor of the state to retain its prime position in the industrial sector, MIDC has played a pivotal role in the last 35 years. MIDC has developed more than 195 industrial estates (major and mini) across the state spread over 45,000 hectares of land. The growth of the Corporation, achieved in the various fields, during the last 3 years, could be gauged from the fact that the area currently in possession of MIDC has doubled from 25,000 hectares in 1995. MIDC is also a "Special Planning Authority" for all its industrial areas for various functions such as selection of land, planning, development and management of industrial parks.

Economic sectors: MIDC has developed specialised parks based on sectors such as:
Automobiles and Auto Components Biotechnology Consumer Durables Chemicals Engineering Electronics Hardware Information Technology Petrochemicals Pharmaceuticals Transportation Textile Wine

Objectives: Set up Industrial Areas for planned and systematic industrial development. To function as a special planning authority in development of industrial areas. Prosperity to all through Industrialization" is the corporate philosophy of MIDC Activities:
Development of industrial areas by acquiring land. Preparing layout with suitable grouping of plots of various sizes and allotment of plots on leasehold basis. Construction of roads, drainage system provision of street lights in the industrial areas. Planning, implementing and managing water supply schemes. Establishing common facility centre (CFC) by providing accommodations for banks, post offices, telecom facilities, police station, fire station, medical facilities, canteen, etc. Establishment of effluent collection disposal systems for chemical zones.

Achievements: Development of Industrial Area Since its inception in 1962, MIDC has established at least one industrial area in every district of the State. Right from selection of site, land acquisition, planning and development of the entire basic st infrastructure has been done by MIDC in these areas. As on 31 March 1994, there were 267 industrial areas notified by the State Government, out of which 79 are major areas, 64 are Growth Centers (State Government), 5 are Growth Centers (Central Government) and 119 are mini industrial areas. The total land notified for acquisition in all these areas is 59,331 hectares out of which 7,579 hectares is Government land and 51,752 hectares is private land. To achieve balanced industrialization, large number of industrial areas i.e. 254 numbers are being set up in the developing regions whereas only 13 numbers are located in the developed regions of BMR and PM. Out of 267 industrial areas notified by the Government, in 150 areas the land is already in possession of the Corporation. The total land in possession of the Corporation is 31,932 hectares. Development of 5-Star Industrial Area at 9 centers: Top quality infrastructure is being developed by MIDC at these centers. 1)Bulibori (Nagpur) 2)Mahad (Raigad) 3)Kagal-Hatkangale (Kolhapur) 4)Sinnar (Nashik) 5)Indapur (Pune) 6)Shendre (Aurangabad) 7) Nivli Phata (Ratnagiri) 8) Kushnoor (Nanded) and 9) Nandgaon Peth (Amravati), Central Government Growth Centers The Government of India in 1988 announced a scheme for development of Growth Centers in the State of Maharashtra at Chandrapur, Akola, Dhule, Nanded and Ratnagiri. Under this scheme, about 600 to 800 hectares of land is to be acquired at each Growth Centre. The sites for all the five Growth Centres have already been identified and the process of acquisition of land for these Growth Centres has been initiated. MIDC has been appointed by the State Government as a Nodal Agency for the implementation of this scheme. Common Effluent Treatment Plant Scheme in MIDC Industrial Areas By encouraging Government of India sponsored Common Effluent Treatment Plant (CETP) in Maharashtra, MIDC has made conscious and deliberate efforts to mitigate pollution problems and betterment of environment quality in chemical industrial areas. Connecing Districts by Airstrips Existing airstrips at Kolhapur, Ratnagiri, Baramati and Yeotmal are being managed on behalf of State Govt. The existing at Gondia is being improved. New Airstrips are being constructed at, (1)Gadchiroli, (2)Parule (Sindhudurg), (3)(Beed), (4) Parbhani and (5) Malkapur (Buldhana)

Activity entrepreneurs can undertake New industrial venture in small, medium or large scale sector; Expansion or diversification of the existing industrial unit; Shifting of existing industrial unit; Service industry/commercial ventures like industrial warehousing, canteen, petrol pump, shop, health service to support the industrial units; Industrial housing wherever separate residential zones are developed by MIDC.

Electronic Zones MIDC has established special Electronic Zones to encourage establishment of electronic units. In these zones, readymade Flatted Factory Buildings have been constructed to facilitate entrepreneurs to start the manufacturing activity speedily. Similarly, various sizes of plots are also made available in the electronic zones. The electronic zones have already been established at: 1. 2. 3. 4. T.T.C. Industrial area Pimpri-Chinchwad industrial area Hingna Industrial area, Nagpur. Chikhalthana Industrial area, Aurangabad.

Allotment Procedure of Plots Plots of appropriate size are allotted to entrepreneurs on lease of 95 years on recovering lease premium in lump sum prior to allotment. The plot holders can mortgage the plots alongwith structures to Financial Institutions with prior consent of MIDC. Transfers of vacant plots are not generally permitted and plots can be transferred with prior approval of MIDC. In case of transfers of `formal' nature, MIDC recovers standard transfer fee whereas in case of non-formal transfers, the differential premium i.e. difference between the amount of lease premium paid at the time of a allotment and the amount based on prevalent rates at the time of transfer, is charged. Explanatory booklets on transfer of plots are available from MIDC offices. MIDC approves building plans and also grants building completion certificates. If a plot remains unutilised for more than 3 years, the plot holder has to either obtain extension by paying additional premium or surrender the plot. Various MIDC officers have been empowered to allot the plot depending upon the size of the plot and the location of the industrial area. The entrepreneur gets numerous advantages when he takes a plot of land in any of the industrial areas of MIDC. 1) Plot in recognized Industrial Zone with approach road facility. 2) Location in a well laid out industrial neighborhood. 3) Plots of different sizes to meet the requirements of different industries. 4) Reasonable premium rates in the developed areas and subsidized rates in the developing areas with a guarantee of clear title. 5) No separate non-agriculture (N.A.) permission of zoning clearance is necessary. 6) Adequate filtered water supply is assured. 7) MIDC industrial area will not be included within the limit of any Municipal Council or Corporation at least for 25 Years.

Built-up sheds Built-up sheds are constructed in different industrial areas by MIDC with view to enable the technocrats and small scale industries to set up their units expeditiously. The sheds are advertised periodically calling for applications in the prescribed form. Sheds are normally allotted on outright basis. Sheds on installment basis are allotted to lady entrepreneurs and SC/ST entrepreneurs in developed as well as developing areas. The detailed procedures of allotment of plot of land and shed, agreement to lease and final lease have been explained in module 7, `Your Queries' of this package. Water Supply Water is an essential input for development of industry. For certain industries, water could even be a major raw material. MIDC has shouldered the responsibility of providing filtered water in all its industrial estates. So far, MIDC has executed 48 schemes for supply of filtered water of capacities ranging from 4,000 cubic meters per day to 520,000 cubic meters per day. The total capacity of MIDC's water supply scheme is 17.42 lakhs cubic meters per day (1742 million liters per day). MIDC has executed Barvi, Dhule, Murbad and Ransai water supply schemes where construction of dams was also involved. The total capital expenditure incurred on these four schemes alone till 31st March, 1994 is to the tune of Rs.728 million.MIDC , at present, is executing Mahad water supply scheme costing more than Rs.250 million where construction of a dam has been undertaken. The total expenditure as on 31st March 1994 is Rs. 353 mn. Apart from supplying water to industry as the core activity, MIDC has undertaken water supply to many residential areas, villages and townships. Tree plantation Under MIDC's tree plantation promotion programme, industrial units, in MIDC areas can avail of the following facilities: Free supply of tree saplings. open space along the side of the road or other open space can be allotted to industrial units at the nominal rent of Re.1/- per annum for a period of five years. The licence can be renewed every five years subject to proper maintenance. Permission can be granted to fence these open spaces. Industrial units can display advertisements of their products in such spaces. 15 mm water supply connection can be provided at each site at domestic rates. A rebate of Rs.12/- per tree, per year is paid by MIDC on the number of trees which survive for the first three years. This rebate is adjusted through the water bills.

As a result of such encouraging steps and implementation of its own tree plantation programmed, the industrial areas of MIDC, its offices, water works and other premises all over the State are now surrounded with greenery. During the period of last five years, more than 2.2 million trees have been planted by MIDC all over the state. Common Amenities With the objective of making available basic facilities at the neighborhood, MIDC provides in every industrial area accommodation facilities like post office, telephone exchange, telex exchange, hospital and dispensaries, canteen, shops, police station, fire station, commercial banks, school etc. Some of these facilities are accommodated in one building normally called as Common Facility Center. Separate plots are also made available, if required, for accommodating these activities depending on the scope and size. MIDC also provides land for ESIS Hospitals and ITIs within MIDC areas wherever needed. Accommodations for police stations/chowkies and staff quarters within the industrial areas are provided by MIDC.

The results With the sustained efforts of MIDC since 1962 and the Package of Incentives for industries offered by the State Government, industries are now flocking to developing parts of the State and so far 15,428 industrial units have started production in the MIDC areas. These industrial units have catalyzed an investment of Rs. 3,743 millions. The Future MIDC has now been entrusted with the responsibility of implementing the program announced by the State Government for setting up Growth centers and Mini Industrial Areas in the State. The acquisition proposals for the land have been submitted to the State Government and it is expected that by the end of 1996 as many as 52 major Industrial Areas, 63 Growth Centers, five Central Government Growth Centers and 131 Mini Industrial Areas would be for developed. This program envisages acquisition of 35,847 hectares of land at an estimated cost of Rs.1438 million. The aforesaid program aims at giving the main thrust by MIDC for industrialization of the developing part of the State and as many as 251 locations in the developing part of the State are expected to join the industrial development process in the near future. Locations MIDC areas are spread all over the state of Maharashtra. The MIDC started in 1962 with Wagle estate, Thane as its first industrial Area. MIDC's major Industrial Areas are at: TTC (Trans Thane Creek) near Thane & Navi Mumbai Pimpri-Chinchwad near Pune Satpur, Ambad, Sinnar, Gonde near Nashik Butibori near Nagpur Nanded 5 Star MIDC Nanded Kupwad - Sangli Miraj - Sangli Latur Latur Waluj near Aurangabad Islampur near Sangli

MIDC's major IT Parks are at: Airoli Knowledge Park, Navi Mumbai Millennium Business Park, Navi Mumbai Samruddhi Venture Park, Mumbai Rajiv Gandhi Infotech Park, Hinjawadi, Pune V-Tech Information Technology Park, Nashik Shankarrao Chavan Infotech Park, Nanded Sangli Infotech Park, Sangli Latur Infotech Park, Latur

MIDC Wine Parks: Wine Park, Nashik, Krishna Valley Wine Park, Palus near Sangli MIDC Chemical parks: Nanded Chemical MIDC Area, Nanded

SEZ (Special Economic Zone)

SEZ - INDIA A Special Economic Zone (SEZ) is a geographical region that has economic laws that are more liberal than a country's typical economic laws. The category 'SEZ' covers a broad range of more specific zone types, including Free Trade Zones (FTZ), Export processing zones (EPZ), Free Zones (FZ), Industrial Estates (IE), Free ports, Urban Enterprise Zones and others. Usually the goal of a structure is to increase foreign direct investment by foreign investors, typically an international business or a Multi National Corporation (MNC). The policy of SEZ in India was introduced on 1st April 2000 with a view to provide an internationally competitive hassle-free environment for exports and make the domestic enterprises globally competitive. In 2005 June, the Indian government passed an act to legalize the creation of numerous SEZs which had access to advantages like the workforce, supply base, simplified export procedures and more domestic duties. Even companies that supplied their material to the SEZ units enjoyed all the benefits. However, the SEZ units could not supply their goods in the local market as this would attract duties. The main objects of the SEZ act are: Promote exports Promote investment from domestic and foreign sources Creation of employment opportunity Development of infrastructure facilities

It is expected that this will generate additional domestic investment in SEZs.

SEZ in Maharashtra
The Maharashtra Special Economic Zone is the most strategically placed SEZ in the country. Being the most industrialized state in India, Maharashtra has undergone rapid infrastructure development such as roads, railways, airport, and seaports. These assistances have helped the industries further. The Special Economic Zones in Maharashtra have the advantages of close proximity to seaport and airfreight services that would increase India's industrial exports.

Maharashtra Special Economic Zone comprises ofSantacruz Electronics Export Processing Zone Navi Mumbai Special Economic Zone Maha Mumbai Special Economic Zone Santacruz Electronics Export Processing Zone Santacruz Electronics Export Processing Zone (SEEPZ) was set up in the year 1974 for the purpose of manufacturing and exporting electronic products. Set up in an area measuring 100 acres it has become watershed project of the Maharashtra Industrial Development Corporation. The gem and jewelry industry was introduced in the year 1988 in SEEPZ.
Aspects of SEEPZ are The imports are license free Tax exemption on import of basic element, capital goods, etc

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Tax exemption on central sales tax pertaining to national purchases The SEEPZ can be involved in any type of activities among trading, manufacturing and service The SEEPZ is entitled for 100% foreign direct investments apart from a few of the sectors

Navi Mumbai Special Economic Zone (NMSEZ) Navi Mumbai Special Economic Zone (NMSEZ) is situated in the most industrialized part of India. The Navi Mumbai Special Economic Zone is located in the satellite township near Mumbai known as Navi Mumbai in the state of Maharashtra. NMSEZ is regarded to be the best SEZ in India. The NMSEZ with all its connections such as sea, rail, air and road is among the best in India and the perfect place for state of the art trans-shipment hub near the area of Navi Mumbai. This would help diverting the traffic towards the special economic zone and let SEZ earn more revenue. The nearness of the Navi Mumbai Special Economic Zone (NMSEZ) to the national and international transportation system is one of the major strengths of the special economic zone. The NMSEZ also has the Chhatrapati Shivaji International Airport for airfreight, which is just an hour and a half drive from the special economic zone. A second international airport is coming up in Mumbai within the year 2010. The NMSEZ is also linked with the other parts of the country by a network of National Highways such as NH3, NH4, NH8, NH9 and NH17. The Navi Mumbai Special Economic Zone is situated near to the Jawaharlal Nehru Port Trust, which is the biggest and the most advanced sea port in India. Opportunities of NMSEZ are -

The NMSEZ has the access of all types of transportation facilities such as air, seaport, railways and roadways, so the special economic zone should have an access to the most of the world. The setting up of the trans-shipment facilities at the Jawaharlal Nehru Port Trust would increase the efficiency of the transportation further. The increasing demand for the integration of the industrial sectors in India.

Facilities of NMSEZ are The provision of a fully developed transportation system including wide main roads and services roads that would connect the different manufacturing units. The system of transportation would also cater to the heavy commercial vehicle traffic required by some of the manufacturing units. The choice pertaining to the type of facility the manufacturing unit requires, such as well-built and equipped office space, technologically equipped state of the art factories, plotted lands with proper transportation facilities. The power supplied would be continuous as it would be supplied directly from the grid and the area of the special economic zone would also have a backup power supply facility in case shut downs. The supply of water would be abundant in the area of the special economic zone. A well connected network of waterlines and water pump stations would provide continuous supply of water. The sewer water and solid waste removal would be very less as most of the industries would be pollution free, but still there would be treatment units for sewer water and solid waste including trucks, tankers, and dumpers for waste disposal.

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Water treatment and sewerage units would be built within the area of the special economic zone.

Revenues earnings by NMSEZ are The generation of revenue by providing services such as supply of water, power distribution and transmission, disposal system solid and liquid waste, maintenance of basic infrastructure facilities, system of sewerage and water treatment etc. The sale of basic infrastructure provisions that constitute state of the art factories space, lease of land against rent, well built and equipped multi storied space for manufacturing units and the lease of property to the business organizations. The other sources of revenue are the incomes from the activities such as outsourcing, charges for special economic zone, admission fees, etc

Maha Mumbai Special Economic Zone (MMSEZ) The Maha Mumbai Special Economic Zone (MMSEZ) is proposed to be setup in Navi Mumbai area, as an international standard business center. Maha Mumbai Special Economic Zone would be acquiring 10,000 hectares of land in three different stages, within a time span of ten years. The present stage called the Phase I would acquire 2126 hectares of land. The area where the Maha Mumbai Special Economic Zone would be set up in one of the most industrialized area in India situated near the city of Mumbai in the state of Maharashtra. The twin sisters, NMSEZ and MMSEZ would contribute to the rapid development of the surrounding areas in the state of Maharashtra. Together they are called as India's best-placed SEZ due to its infrastructure facilities, economic opportunities, and revenue generation. The close proximity of the Maha Mumbai Special Economic Zone (MMSEZ) to the NMSEZ it also has the advantages of connections by sea, rail, air, and road. The proposed state of the art trans-shipment hub would add to the advantages. The MMSEZ is situated very near to Jawaharlal Nehru Port Trust. Other than this the national highways connect the Maha Mumbai Special Economic Zone with the rest of the country. Infrastructure facilities of MMSEZ are The MMSEZ would be supplied with a 24*7 power supply facility and the area of the Maha Mumbai special economic zone also has a back up power supply facility in case of power cuts, The manufacturing unit would have an option pertaining to the requirement of the type of facility, such as well built and technologically equipped state of the art factories, equipped office space, plotted lands with proper transportation facilities The provision of a fully developed transportation system including wide main roads and services roads that would connect the different manufacturing units. The supply of water would be adequate in the area of the Maha Mumbai special economic zone. A network of water pumping stations and waterlines would provide the required supply of water Water treatment and sewerage units would be constructed within the area of the Maha Mumbai special Economic Zone (MMSEZ) The sewer water and waste removal both solid and liquid would be paltry as the industries would be pollution free. Still there are treatment units for solid waste, liquid waste, and sewer water

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Economic scopes of MMSEZ are The MMSEZ has the advantage of all types of transportation system such as roadways, seaport, air, and railways so the special economic zone should have a good export link with the other countries in the world The trend in the unorganized industries sector such as information technology, jewelry and gem, toys, biotech, and leather is to come under one common roof in order to have an access to the general infrastructure facilities The increasing demand for the integration of the industrial sectors in India The trans-shipment facilities at the Jawaharlal Nehru Port Trust would add to the economic value of the MMSEZ and increase the efficiency of the transportation further

Revenue generation of MMSEZ are The main revenue generation of MMSEZ would be by maintenance of basic infrastructure facilities, providing services such as power distribution and transmission, adequate supply of water, system of sewerage and water treatment, disposal system for both solid and liquid waste, etc. By the sale of basic infrastructure facilities such as well-built and equipped multi storied space for manufacturing units, technologically equipped state of the art factories space, the lease of property to the business organizations, and lease of land against rent. The additional sources of revenue are the incomes from the activities such as, charges pertaining to special economic zone, outsourcing, admission fees, etc.

Advantages 15 year corporate tax holiday on export profit 100% for initial 5 years, 50% for the next 5 years and up to 50% for the balance 5 years equivalent to profits ploughed back for investment. Allowed to carry forward losses. No licence required for import made under SEZ units. Duty free import or domestic procurement of goods for setting up of the SEZ units. Goods imported/procured locally are duty free and could be utilized over the approval period of 5 years. Exemption from customs duty on import of capital goods, raw materials, consumables, spares, etc. Exemption from Central Excise duty on the procurement of capital goods, raw materials, and consumable spares, etc. from the domestic market. Exemption from payment of Central Sales Tax on the sale or purchase of goods, provided that, the goods are meant for undertaking authorized operations. Exemption from payment of Service Tax. The sale of goods or merchandise that is manufactured outside the SEZ (i.e, in DTA) and which is purchased by the Unit (situated in the SEZ) is eligible for deduction and such sale would be deemed to be exports. The SEZ unit is permitted to realize and repatriate to India the full export value of goods or software within a period of twelve months from the date of export. Write-off of unrealized export bills is permitted up to an annual limit of 5% of their average annual realization. No routine examination by Customs officials of export and import cargo.

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Setting up Off-shore Banking Units (OBU) allowed in SEZs. OBU's allowed 100% income tax exemption on profit earned for three years and 50 % for next two years. Exemption from requirement of domicile in India for 12 months prior to appointment as Director. Since SEZ units are considered as public utility services, no strikes would be allowed in such companies without giving the employer 6 weeks prior notice in addition to the other conditions mentioned in the Industrial Disputes Act, 1947. The Government has exempted SEZ Units from the payment of stamp duty and registration fees on the lease/license of plots. External Commercial Borrowings up to $ 500 million a year allowed without any maturity restrictions. Enhanced limit of Rs. 2.40 crores per annum allowed for managerial remuneration.

Disadvantages Revenue losses because of the various tax exemptions and incentives. Many traders are interested in SEZ, so that they can acquire at cheap rates and create a land bank for themselves. The number of units applying for setting up EOU's is not commensurate to the number of applications for setting up SEZ's leading to a belief that this project may not match up to expectations.

Shoshit Shetkari Kashtkari Kamgar Mukti Sangharsh ( SSKKMS or Mukti Sangharsh):

The Mukti Sangharsh organized small and medium peasants and the displaced industrial workers in the early 1980s in Sangli district which was affected by drought in 1982. There were scarcity conditions due to uncertain rainfall, poor soil and small holdings. One of the leaders was Bharat Patankar who with his wife Gail Omved and mother Indutai mobilized the peasants and workers under the employment guarantee scheme act of 1978. Morchas and Dharnas were organized to create an awareness regarding their rights. The demand was that the EGS be used comprehensively for the people to bring about sustainable agricultural development. An unusual feature of this movement was that almost half of its participants and many leaders were women. It addressed gender inequalities in division of labour and raised issues of corruption in the sugar cooperatives and exploitation of Dalits. The MS stated that stone breaking and road building did not lead to growth and a demand was made for a regional plan to construct small dams and tanks to solve the water problem. The MS linked environmental sustainability with public participation. It started a Stri Mukti Sangharsh in 1985 to develop feminist consciousness and involve male activists. This gave women access to land and political power. In fact this movement did not have a single focus but was committed to multiple struggles for economic and social justice. It incorporated concrete material targets and broad ideological goals through direct action and political activism.

Sharad Joshi Shetkari Sanghatana

Sharad Anantrao Joshi is a founder of Swatantra Bharat Paksh party and Shetkari Sanghatana (farmers' Organization), He was also a Member of the Parliament of India representing Maharashtra in the Rajya Sabha

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The Shetkari SanghatanaThe Shetkari Sanghatana was established in Maharashtra in the year 1978. The main objective of this Sanghatana was Lowering the prices of the agricultural inputs and increasing the prices of the agricultural outputs. The Sanghatana was able to draw a cross-section of the rich peasantry, i.e. the beneficiary of the Green Revolution, across the State; barring the sugar-belt. Sharad Joshi, a foreign returned technocrat- turned agriculturist provided effective leadership to the Sanghatana during the formative stage by spelling its ideology and planning its strategy. Joshis leadership remained undisputed and disgruntled till one of his close associate Anil Gote left the organization and formed a parallel organization with worthwhile success. Thus Joshi was the leader, the ideologue and the strategist of the Sanghatana. Joshi and other claims that the functioning of the organization is democratic and all the decisions are taken by its governing council but according to critics it is one man show because none of his colleagues or followers have objected or questioned the wisdom of the supremes decisions. According to critics, Joshis claim that he championed the cause of the peasantry is half truth. None of the agitation of Joshi was related to the interests of the small and marginal farmers. He was the spokesperson of the rich peasantry and his agitations were for cash crops- the sugarcane, cotton and tobacco which widened the gap between the rich and the poor peasantry. His agitation for the rich farmers prompted the small and marginal farmers and the landless workers to unite to further their interests vis--vis the rich peasantry. According to Marxists, the Shetkari Sanghatana exploited the numerical strength of the small and marginal farmers for the sake of the rich farmers. V.M Dandekar refuted Joshis percolation theory by pointing out that the rich peasantry which has cornered fruits of development and Green Revolution never shared its their gains with the poor cousin. In the history of human civilization there is not a single instance where the haves have shared their gains with the havenots. The new farmers movements gathered momentum in 1973, such movements were partly a response to the contradiction of the growth process, where a handful of rich farmers were privatizing the benefits of development, whilst general socioeconomic inequalities increased and the insatiate avarice of the rich farmers' class kept a stranglehold on institutional opportunity structures. Paradigmatic features of old and new farmers' movements are compared. The ideology of Shetkari Sanghatana is expounded, owing more to Rosa Luxemburg than to Karl Marx - it is the invasion of primitive economies by capitalism which keeps the accumulative system alive. Joshi's dichotomy of Bharat versus 'India' typifies this. Several unresolved issues remain about the economic formulations of Shetkari Sanghatana and the drastic fall in agriculture's share in the total tax revenue. It focuses specifically on the way in which both the KRRS and Shetkari Sanghatana claim to be 'new' agrarian mobilizations, how they identify potential/actual membership and alliances, the manner in which they confront and/or collaborate with the state, and in particular how they conceptualize externally-derived exploitation. The latter is linked to the continued existence in India of a subordinated 'weak' capitalism which perpetuates not only colonial dependency on foreign capital but also endemic rural poverty and urban bias, the eradication of which requires either a 'Khadi Curtain' or an 'Operation Ryot', ie, international egalitarianism based on non-exploitative relations.

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Joshi suggests action on six major issues in agricultureJune 21, 1998. Sharad Joshi's letter formulating six major issues in agriculture was discussed at the joint meeting of Shetkari Sanghatana and Shetkari Mahila Aghadi Executives. The six issues are: Monopoly purchase of cotton in the state, Sugarcane industry and Levy on sugar, Creating alternatives for marketing agricultural produce, Essential commodities act of 1955, Encouraging novel methods of Jowar utilization, Farmer promoted development companies as an alternative to land acquisition by Government. Shetkari Sanghatana has been focusing these issues for almost two decades. Action suggested

Allow our cotton and cotton traders in other states to cross state borders. Levy prices for sugar must be uniform all over the country. Allow joint stock companies of farmers and consumers to operate chain stores. Essential commodities act be scraped. Promote nontraditional uses of Jowar. Promote farmer promoted development companies as an alternative to land acquisition by Government.

Co Operative Movement:
India is a land of cooperatives mainly as a result of trying to solve the problems at the grass root level and eliminate the ills of the public and private sector business enterprises. An association of persons of limited means to achieve a common end and the organization is democratically controlled. The objective is selfhelp and mutual help, modernization of techniques and transformation of lives, protection to consumers. In every nation cooperatives have played an active role specially in empowering the ruler areas. The government of India emphasizes the cooperative sector in the first 5 years plan especially at the village and primary level. Modern day co operative moments are built on voluntary moment where as industries th make a deliberate choice. The Indian cooperative moment gradually developed in stages in the 20 century. The co operative moment in Maharashtra has a long history and co operatives are regarded as growth centers. Maharashtra has been a pioneering state with respect to setting up co operative sugar factories.

The co-operative movement is a great force influencing the economic set-up in the rural country side. It has played a significant role in changing the economic conditions in the fields of rural credit, agricultural marketing, small-scale and village industries, farming, housing and consumers societies. The simultaneous speeding of co-operative movement with the launching of the five year plans has brought about accelerated results beneficial to the economically weaker sections of the people. The movement found a humble beginning in the district, in 1909, in which year the first co-operative organisation was established in Gadhchiroli tahsil. The first co-operative bank was organised in 1912 which went into liquidation in 1925. Co-operative central banks were organised at Brahmapuri and Warora in 1912 and 1913, respectively. However, these banks were closed as per government policy. This was followed by the establishment of the Chanda District Central Co-operative Bank, in January 1962, which was charged with the onerous responsibility of leading the co-operative banking movement in the district. The establishment of the District Co-operative Land Development Bank, in March 1961, was a great event in the field of agricultural finance. The existence of this organisation is very significant because it provides medium-term and long-term finance to the agriculturists for making improvements 16

of a permanent nature, such as, digging wells, lift irrigation, bunding, trenching, etc. Another addition to the co-operative structure in Chandrapur District was the Chanda Urban Co-operative Bank which was registered in 1961-62. Though the area of operation of this bank is limited to Chandrapur town, it is instrumental in mopping up the savings, especially of the middle and lower income groups of people. The co-operative movement in the district was confined mainly to credit activities in the past. Subsequently the area of operation of the co-operatives expanded to marketing, supply of agricultural requisites, small and village industries, irrigation, fishing, cattle breeding, forest labour, housing, etc. These societies have been of immense benefit to the respective sections of population. The District Central Co-operative Bank with 25 branches in the district has played a pioneering role in advancing short-term and medium-term loans to agricultural credit societies, agricultural marketing societies and industrial co-operatives. Besides financial accommodation, it provides guidance and direction to the co-operative movement in the district. The Chanda District Co-operative Land Development Bank having five branches has made remarkable progress during the span of six years. It has done very valuable work through its schemes of medium-term and long-term loans, and rural debentures. The agricultural primary societies covered 2,474 out of 2,755 inhabited villages in the district in 1966-67. It means that about 90% of the villages are covered under the movement. The percentage of rural population served by rural societies is about 87.
The state government has been giving direct loans to co operative sugar factories to enable them to complete their projects. They are located mostly in western Maharashtra where irrigation facilities and other complimentary inputs where available. These sugar co operatives have transformed some rural areas but this has put a fiscal burden on the government. Sugarcane being a high water consuming crop is pressuring the scarce water resources in the state. The sugar factory was setup in 1951 called the Pravara Cooperative Society in Ahmednagar district by Padmashree Vikhe Patil. . It was very successful and he was helped by some of the leading economists of that time. Thereafter, the state government has been giving direct loans to enable the CSFs (Cooperative Sugar Factories) to complete their projects. They are located mainly in western Maharashtra where irrigation facilities and other complimentary inputs are available. These sugar cooperatives have helped to transform the rural areas but sugarcane being a high water consuming crop is pressurizing the scarce resources of the government and affecting water supply for other crops. Unfortunately the sugar cooperative movement has put a fiscal burden on the government, suffered losses as there are many outstanding loans. There is also political interference, corruption and mismanagement. Sugarcane factories also result in a lot of pollution.

Co-operative banksCo-operative banks are small-sized units organized in the co-operative sector which operate both in urban and non-urban centers. These banks are traditionally centered around communities, localities and work place groups and they essentially lend to small borrowers and businesses. The term Urban Co-operative Banks (UCBs), though not formally defined, refers to primary cooperative banks located in urban and semi-urban areas. These banks, until 1996, could only lend for nonagricultural purposes.

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However, today this limitation is no longer prevalent. While the co-operative banks in rural areas mainly finance agricultural based activities including farming, cattle, milk, hatchery, personal finance, et cetera, along with some small scale industries and self-employment driven activities, the co-operative banks in urban areas mainly finance various categories of people for self-employment, industries, small scale units and home finance. Cooperative Banks in India are registered under the Co-operative Societies Act. The cooperative bank is also regulated by the RBI. They are governed by the Banking Regulations Act 1949 and Banking Laws (Co-operative Societies) Act, 1965. These banks provide most services such as savings and current accounts, safe deposit lockers, loan or mortgages to private and business customers. For middle class users, for whom a bank is where they can save their money, facilities like Internet banking or phone banking is not very important. The co-operative banking structure in India is divided into following main 5 categories: Primary Urban Co-op Banks Primary Agricultural Credit Societies District Central Co-op Banks State Co-operative Banks Land Development Banks

Co-operative banks function on the basis of 'no-profit no-loss'. Co-operative banks, as a principle, do not pursue the goal of profit maximization. Therefore, these banks do not focus on offering more than the basic banking services. So, co-operative banks finance small borrowers in industrial and trade sectors, besides professional and salary classes. Some cooperative banks in India are more forward than many of the state and private sector banks. According to NAFCUB (National Federation of Urban Co-operative Banks and Credit Societies Ltd), the total deposits and lending of cooperative banks in India is much more than old private sector banks and also some new public sector banks. This exponential growth of co-operative banks in India is attributed mainly to their much better local reach, personal interaction with customers, and their ability to catch the nerve of the local clientele. Although they are not better than private banks in terms of facilities provided, their interest rates are definitely competitive. For example, the interest rates on auto loans are anywhere less than 5%-7% than that offered by private banks. However, unlike private banks, the documentation process is lengthy if not stringent and getting a loan approved quickly is rather difficult. The criteria for getting a loan from a UCB are less stringent than for a loan from a commercial bank. For instance, when taking an education loan, it does not matter whether the course you are going for is recognized or not.

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The Mumbai District Central Co-operative Bank Ltd. is a central financing agency of all affiliated cooperative societies in Mumbai district, which is popularly known as "MUMBAI BANK" and is registered under MCS Act in the year 1974 and started its functioning on 12th Feb.1975. Since there is no agriculture production in this District, MUMBAI BANK is catering to the financial needs of nonagricultural co-operative societies such as Urban co-op. banks, Urban co-op. credit societies, Employees co-op. credit societies, Housing co-op. societies, Co-op. consumers stores, Industrial, fisheries and labour co-op. societies etc. In India, an integral part of the policies formed by the Co-operative movement is focused on the development of the country, upliftment of poor and propagation of principle which represents the very socio-cultural ethos of the country. Co-operative movement has enabled us to develop the economy and to bring social change at large.. The Indian co-operative movement is so far the largest movement in the world. In India co-operatives operate in almost all important sectors i.e. agricultural, agroprocessing, fertilizer, marketing, credit, dairies, spinning, handloom and handicrafts, sugar, fisheries, banking, etc. In India co-operatives have gained popularity because they have proven capabilities to reach at the grass root level and have strengthen the faith in co-operatives. The area of operation of some of the cooperatives is limited to village, taluka, district, state or all India basis. Computerization is a new need of business in co-operatives. Operational efficiency, customer service, communication & management information system are the four important parameters to ensure success of business organization. These parameters are improved to a great extent with the help of computers and information technology (IT) by The Mumbai District Central Co-operative Bank Limited. Co-operatives are based on the values of self-help, self-responsibility, democracy, equality, equity and solidarity. The co-operative principles are the guidelines by which co-operatives put their values into practice. The International Cooperative Alliance (ICA) in its centennial conference held in Manchester in September 1995 approved and adopted seven basic principles of Co-operation. 1. Voluntary and Open Membership 2. Democratic Member Control 3. Member Economic participation & Control 4. Autonomy & Independence 5. Education, Training & Information 6. Co-operation among Co-operation 7. Concern for Community
A co-operative society is an autonomous association of persons united voluntarily to meet their common economic, social and cultural needs through a jointly owned and democratically controlled enterprise. There is three tier co-operative credit structures in the state of Maharashtra. The Maharashtra State Cooperative Bank is the Apex institution working at the state level whereas the district central cooperative banks are working at district level. These district central co-operative banks are catering to the financial needs of primary co-operatives in the concerned district. These banks are playing vital role particularly in providing financial assistance for agriculture as well as non-agricultural cooperative sector through member co-operatives. District Central Co-operatives are also acting as a balancing centre of surplus funds of all primary co-operatives in the district. This leading District Central Co-op Bank has invested their funds in Govt.Securities, approved Bond & other securities like NABARD, HUDCO, SBI BOND etc. The total investment of the Bank as on 31st March 2010 stands at Rs.2267.25 crores in various co-operative and Corporations.

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We appeal to all co-operatives and corporations to come forward and avail financial assistance from our bank for the socio- economic Development of the people in greater Mumbai and Maharashtra.

Cotton cooperatives
Brief History

Maharashtra State is a leading producer of cotton and accounts for 20% of the country's total production. The area under cotton cultivation is around 29 to 31 lac hectares, which is 30% of the country's total area under cotton production. Cotton is important cash crop in the State. During the 70's several malpractices like low rate, improper weighment, high deductions from the payment, high fluctuations in the rate paid by the speculative traders existed in the market, as result of which cultivators were deprived of fair price for their produce. To ensure fair and remunerative price to the Cotton Growers in the State, to eliminate the middleman in the cotton trade, to bring the stability in income of cotton growers and to supply scientifically grade quality cotton to the consumer mills, with these main objective the Govt. of Maharashtra enacted the Raw Cotton (Procurement, Processing and Marketing) Act, 1971. This act was implemented with effect from 1972-73 cotton seasons. As per the provision of aforesaid act, Cotton Monopoly Scheme was implemented in 1972 to 1983 through the Maharashtra State Cooperative Marketing Federation Ltd. Looking to the volume of activities and quantum of transaction, in the year 1984 it was decided to form a separate organization to implement the Cotton Monopoly Scheme of Govt. of Maharashtra. Accordingly, State level Cooperative organization by name The Maharashtra State Co-operative cotton Growers Marketing Federation Ltd., was formed under the Maharashtra Co-operative Societies Act, 1960. Cotton Monopoly Scheme was implemented as per the provisions of the said act till 2001-02. The 2 main cotton cooperatives in Maharashtra are: Technology Mission on Cotton Maharashtra State Cotton Cooperatives Growers Marketing Federation Ltd. (MSCCGMFL)
In the year 2002-03, taking into consideration change in the changing scenario of cotton trade Govt. of Maharashtra for the first time allowed Private Spinners, Cotton Mills, Ginning Units, to procure, process & marketing of cotton in the State of Maharashtra. This policy proved to be a roaring success as the market were buoyant and the cotton farmers benefited from the high prices. In the year 2005-06, Govt. of Maharashtra principally decided to exist the market with support price as fixed by Govt. of India and support the farmers. This has resulted in getting competitive prices to the cotton produced by the farmers. Govt. of Maharashtra has continued the same policy to exists in the market at MSP as declared by Govt. of India to support the farmers in the State.

Vision: The Vision of the Federation is to help the cotton farmers to get a remunerative price for their produce and supply unadultered cotton to its consumers with reasonable market price. 20

To bring stability in income of the growers and thereby bring growth and stability in overall production of cotton in state. To supply scientifically graded quality cotton to consumers.

Objectives To ensure fair and remunerative prices to the Cotton Growers' in the State. To procure cotton, arrange to process it and to supply unaltered cotton to consumers at reasonable price, to guarantee the purity of Cotton and honest trade practices at collection and processing centers To eliminate the middleman in the cotton trade and transfer the profit going to the pocket of middleman to the cotton growers. To bring about stability in income of the growers and thereby bring about growth and stability in the overall production of cotton in the State. To supply scientifically graded quality cotton to consumer mills. To eliminate scope of individual profit and to maintain the Cooperative Character by following cooperative principles and voluntary association based on footing of quality and democratic management. Strengths The Federation is known for its quality graded cotton The Federation's cotton is pure, free from variety mixing unlike other supply which procures mixed cotton at procurement point in the name of single variety as like in Punjab J-34, Gujarat Shankar-6 etc. Federation has fair and transparent system of transaction. The strength of the Maharashtra Cotton Federation emanates from its experienced, wide network of staff. The Federation has evolved with the times taking the help of new technologies. The HVI Lab testing and categorization on the basis of scientific test results of samples have given over cotton a superior edge in the market. The position as market leader in this sector helps the Federation to stabilize the prices and has given a respectable name to Federation's cotton.
Present Cotton Scenario Government of India fixed a support price for cotton for the season 2008-09, around 46% more than that of last season. Due to substantial hike in support price and downward price trend in the international and domestic market, it was essential to the nodal agency of Government of India to enter into the market in the interest of cotton growers. Along with CCI, National Agriculture Cooperative Marketing Federation of India Ltd is Nodal Agency of Government of India for the procurement of Cotton under MSP. Due to insufficient infrastructure and expertise, Nafed was not in a position to undertake massive MSP operation in the State of Maharashtra. Hence Nafed entered into an agreement with the Maharashtra State Co-operative Cotton Growers Marketing Federation Ltd., (MSCCGMF) for the procurement and processing of cotton for the year 2008-2009. On behalf of Nafed, MSCCGMFL stared procurement on 27.10.2008 and it was continued till 15.03.2009. During the period 167.91 lakh qtrs. raw cotton was procured at 290 procurement centers and engaged

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591 ginning pressing factories for procurement and processing of cotton.

For the crop season 2009-10, Government of India fixed the same support price for the cotton for the season 2008-2009. But, However, since first week of November 2009, the prevailing kapas rate have started ruling above MSP level in all the cotton growing States, except Andhra Pradesh, where large quantities of seed cotton (Kapas) are also being sold above MSP level. For the season 2009-10 also, Nafed entered into an agreement with the Maharashtra State Co-operative Cotton Growers Marketing Federation Ltd., (MSCCGMF) for the procurement and processing of cotton. Cotton Corporation of India Ltd., (CCI) The role assigned to the CCI under the Textile Policy of June 1985 was:

1. To undertake price support operations whenever the market prices of kapas touch the support prices announced by the government of India without any quantitative limit 2. To undertake commercial operations only at CCI s own risk; and 3. To purchase cotton to fulfill export quotas given to CCI The above role of the CCI continued under the New Textile Policy of 2000. However, the last stated function is no longer relevant as export of cotton is now free and he Government is releasing no quotas. Nevertheless CCI purchases cotton even now to undertake export of cotton. Besides the above role CCI has also been designated as the nodal agency for implementation of Mini Missions III and IV of the Technology Mission on Cotton for improvement and Development of Market Yards and Modernization of Ginning and Pressing factories and thereby improving the quality of cotton by reducing contamination of cotton and ensuring better prices to the growers
TECHNOLOGY MISSION ON COTTON With a view to improve the quality of cotton, increase per hectare productivity, increase the income of cotton growers by reducing the cost of cultivation, to improve the processing facilities, etc. the Government of India had launched Technology Mission on Cotton (TMC) in February 2000 with four Mini Missions for achieving the above objectives. MINISTRY OF AGRICULTURE _ Mini Mission-I (MM I): Cotton Research and Technology generation _ Mini Mission-II (MM II): Transfer of Technology and Development MINISTRY OF TEXTILES _ Mini Mission-III (MM III): Improvement of Marketing Infrastructure in market yards _ Mini Mission-IV (MM IV): Modernization/upgradation of G & P factories Initially the Scheme was meant for five years but later on it was extended up March, 2009 Targets for Mini Missions III and IV The target set for MM III is the development and improvement of 250 Market Yards by the end of 31.3.2009 which has since been accomplished. The target set for Mini Mission IV was the Modernization / upgradation of 1000 Ginning and Pressing factories by the end of 31.3.2009 which have also since been accomplished Benefits of MM-III and IV

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 Quality of processing of cotton under modernized factories have improved considerably, both in terms of cleanliness, grade and trash. Level of contamination has come down and the cotton processed in such modernized factories is mostly free from contaminants. Indian cotton has become fully acceptable to the domestic mills as well as international buyers of cotton. Domestic mills are in a position to get quality cotton matching international standards enabling them to compete globally for their finished products. Farmers are indirectly benefited as it results in better price realization due to higher sale prices for traders. Better infrastructural facilities are available to farmers at market yards for disposal of their produce where there is better transparency in handling of his produce. Commercial release of Bt seeds Indian cotton farmers have started growing biotech cotton only a few years ago. Area under Bt has been rapidly increasing due to increased yields and less production risks. Area under Bt cultivation during 2008-09 has increased by around 7% at 68.18 lakh hectares as against 63.34 lakh hectares during 2007-08. The same is around 73% of the total acreage of 93.73-lakh hectare under cotton cultivation during 2008-09. The major States where BT cultivation is taken up in a big way includes Gujarat, Maharashtra, Andhra Pradesh, Madhya Pradesh, Punjab and Haryana. Integrated Cotton cultivation With a view to improve the quality of cotton through transfer of technology and improved farm practices, the Government of India has been propagating Contract Farming project, which has backward linkages with cotton farmers and forward linkages with the ultimate consumers. CCI has been undertaking contract farming since 2002-03. During 2008-09, the Corporation has taken up contract farming in all major cotton growing States in around 44,617 hectares in association of 14,306 cotton farmers as against 40,383 hectares with around 16,103 cotton farmers. Due to various efforts by the Ministry of Agriculture and the change in the mindset of the cotton farmers in adopting latest technology, there has been substantial increase in the yield per hectare in the recent years. The yield per hectare, which was 302 kgs per hectare in 2002-03 has increased significantly over the years and reached 526 kgs per hectare in 2008-09 thereby showing an increase of about 74%. 23

Progress of Mini Missions III and IV 250 Projects have been sanctioned under MM III out of which 176 have reported completion ; 1000 Units have been modernized/ upgraded under Mini Mission IV out of which 855 have reported competion Budgetary Provision /Release of funds Funds released during the 9th, 10th and 11th five year plans are as under :During 9th five year plan Rs. 55.00 crores During 10th five year plan Rs. 165 crores During 11th five year plan Rs. 100 crores (the total outlay of the plan up 31.3.2009 is Rs. 241 crores which includes NER) Dues pending are under process in consultation/ approval with the IFW

NO RELIEF FOR COTTON FARMERS, PM PUTS OFF MEETING WITH MUMBAI CM

Published: Thursday, Nov 17, 2011, 8:00 IST By Shubhangi Khapre | Place: Mumbai | Agency: DNA Chief minister Prithviraj Chavan on Wednesday had to call off his visit to Delhi to discuss the problems of cotton growing farmers because prime minister Manmohan Singh cancelled the appointment due to prior commitments. The cotton growing farmers have sought Rs6,000 per quintal for the crop a price the state wants to consult with the Centre before making any commitment. Congress leaders from Vidarbha are up in arms arguing that if the state can bear the additional burden of Rs4,000 crore for increasing the price for sugarcane farmers, it cannot ignore cotton growing farmers. The top leadership in the Congress is worried as delay in the decision regarding hike in cotton rates would go against them in the civic polls. The cotton growing belt of Vidarbha, which is perceived as the Congress stronghold, is turning into a political battle turf after BJP and Shiv Sena decided to launch an agitation from November 19 and 21 respectively. State BJP chief Sudhir Mungantiwar said: We will not allow winter session to take place in Nagpur (Vidarbha) if cotton farmers are not paid Rs6,000 per quintal.

MPCC chief Manikrao Thakre, who hails from Yavatmal in Vidarbha, has taken the lead to drive the farmers plight through closed door meetings with top leadership of state. He held discussions with the CM drawing attention to the problems of farmers in Vidarbha.

COTTON FARMERS TO BE PAID BASED ON LAND-HOLDING

Published: Thursday, Nov 24, 2011, 8:00 IST By Amberish K Diwanji | Place: Mumbai | Agency: DNA The state government has finally decided to compensate cotton growing farmers on the basis of their land holding rather than on the crop sold.

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Chief minister Prithviraj Chavan on Wednesday said it was not possible to compensate farmers on a per quintal basis a demand by a few Opposition parties because many farmers had already sold their cotton. However, Chavan said the state government had not yet decided on the exact amount it would pay to the farmers or the details on how the payment would be made. The decision will only be announced during the Nagpur assembly session since the electoral code of conduct is in force at present (due to the impending local elections across the state), he said. Earlier in the day, the CM held an all-party meeting to decide on helping the cotton growers across the state, but no decision was taken. The Bharatiya Janata Party (BJP) has said it will launch a statewide agitation and disrupt the Nagpur legislative sessions unless the government substantially hiked the prices. Cotton farmers have been demanding a higher minimum support price (MSP) than the Rs3,300 per quintal announced by the state, saying they had suffered losses due to unseasonal rains and the high input costs. The BJP has demanded an MSP of Rs6,000 per quintal. A Nagpur-based political analyst said the state government is likely to announce a compensation of between Rs2,000 and Rs3,000 per hectare, with a limit of two hectares per farmer so that the government would not have to spend more than Rs200-300 crore. It had applied a similar formula last year, the political analyst added. Most cotton growers are in Vidarbha, Marathwada and northern Maharashtra regions, where land holdings tend to be around four to five hectares. But the cash-strapped state government is in no position to spend more than a few hundred crores, unless the Central government bails it out. The Centre has, so far, proven reluctant. Cotton remains a popular cash crop with farmers in Vidarbha, Marathwada and Khandesh (northern Maharashtra) and was grown on around 42 lakh hectare up from the 38 lakh hectare of last year. This was because last year, international prices were high and that induced more farmers to go in for cotton this year, said the analyst. In July, it was expected that 400 lakh quintals of cotton would be grown in the Maharashtra, but now the figure has been revised to 300 quintals. With less to sell, farmers want a higher price, and with local elections weeks away, the state government is working overtime to resolve the matter.

MILK
The Indian Dairy industry has been marked by seasonal fluctuations and the dairy farmers were over the years exploited by middlemen who gave them un-remunerative prices. Initially dairy development meant setting up modest size processing plants in cities and small towns. Incidentally, Maharashtra is the second largest producer of the cows milk in India and in 1958 the diary development department was set up to encourage formation of milk cooperatives. Earlier, in 1951 under the enlighten tutelage of Dr. Varghese Kurian the farmers of Kaira district in Gujarat had formed a cooperative with the right to correct and sell milk directly to the government and they were paid according to the quality of milk. This was the beginning of AMUL which is the first recorded cooperative in the diary sector in the world. Amul today has registered a manifold integrated growth with a large range of products and services. It was very well managed with the direct access to the Mumbai market. When Lal Bahadur Shashtri visited Anand in

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1964, he wanted to replicate the Amul model all over the country. The government set up a body called the National Dairy Development Board (NDDB) in 1965 under Dr. Kurian. By good fortune, they could get as Chairman - Shri Tribhuvandas Patel, an equally remarkable man. It was meant to be a technical consultancy body however; many states did not show an interest including Maharashtra because the dairy industry was already set up. Sadly, most of the diary cooperatives in Maharashtra are highly politicized and a suggestion has been made to privatize the industry. E.g. Mahananda. Maharashtra is the only state where the government fixes the procurement price of the milk. The first three are in the cooperative sector The Gujarat Cooperative Milk Marketing Federation (GCMMF). The Kaira District Cooperative Milk Producers' Union Limited The Mehsana District Cooperative Milk Producers' Union.

The Three Tier Structure The dairy co-operative movement operation is a three tier system wherein farmer members own dairy cooperative societies (DCS) which own district Milk producer union. DAIRY CO-OPERATIVE SOCIETY. MILK UNIONS STATE LEVEL

The Dairy Development Department was set up in 1958 with the following objectives: 1) To develop the traditional skills of rural people in the field of Animal Husbandry and Dairying as an allied activity to Agriculture. 2) To establish Dairy Societies etc at Village, Taluka and District level. 3) To strengthen Co-operative dairies and unions for making them competent to deal in milk business by giving incentive to milk production in cooperative sector. 4) To implement programmes for making dairying viable in Government Sector. 5) To maintain milk production at constant level by proper planning. 6) To supply cheap and pure milk to city dwellers around the year Under Dairy Development Department there are Processing Dairies where milk is received, processed and distributed to the consumers or sent to Metropolitan Dairies for further processing and sale to the consumers. The particulars of which are given in Annexure-I. Chilling Centres; To collect milk from the Primary Cooperative Societies at the village level there are chilling centres. They are basically meant to procure milk from the Cooperative Societies. It is chilled and sent for processing to the processing Dairies. The chilling centre is main link between Primary Co-operative Societies and Dairy. Milk Powder Plants

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The Government has given assurance to procure all the milk of the producers, some quantity of milk is always surplus, milk being perishable commodity, it has to be disposed off immediately. To convert surplus milk into Skimmed Milk Powder and White Butter, four Powder Plants have been setup. The particulars of the same are given below: Place of Powder Plant Miraj Akola Udgir Nagpur Capacity/day 20 M.T. 15 M.T. 10 M.T. 05 M.T.

Apart from this, milk handling units, the following farms were setup for up keeping of animals etc. Aarey Milk Colony Aarey Milk Colony was setup in 1949 by acquiring area of 3160 acres. The main purpose of Aarey Milk colony was to shift animals from the city of Mumbai and resettle the same in Aarey Milk Colony for providing clean milk to the citizens. There are about 16000 animals in Tables, managed by Private persons. Government charges License Fee for animals from Cattle owners and also charges for water supply, electricity charges, paragrass plots given to them. The management of colony is looked after by a Senior Officer who is called Chief Executive Officer. Dairy Project, Dapchari Dapchari Project was setup in 1960 with the purpose of shifting animals from Mumbai suburban District. For this purpose land measuring 2677 hectors was acquired on Mumbai Ahmadabad National Highway. The cattle owners of Mumbai Suburban District did not go there, therefore, the original object of the project was changed. At present the scheme of Agriculture Farm Units under which cattle shed for animals and place for residential quarters is given to the cattle owners. Similarly, the project for producing cattle of high progeny was undertaken. Programme of Artificial Insemination was undertaken. Fodder development, calf rearing etc. were also undertaken. Later on these schemes were discontinued. Project Officer, Dairy Project, Dapchari looks after management. Cattle Rearing Farm, Palghar Palghar centre was established in 1951 for the purpose of keeping dry buffaloes from Mumbai and also for providing dry fodder to the villages. For this purpose total land of 1432 Hectors was acquired. Schemes like Dry fodder etc. have been discontinued. At present only natural grass production is undertaken. Manager, Palghar Farm is in charge of the Centre. Dairy Science Institute, Aarey The Dairy Science Institute was established in 1960 for providing manpower having sound technical knowledge to the Dairy Industry. For this purpose diploma of two years duration is run by the Institute. The yearly capacity is 40 students. The course is now undertaken through Maharashtra Animal and Fisheries University, Nagpur. Students who have passed are working in Government and Private Dairies. Some students have also gone Abroad for service.

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Principal Dairy Science Institute, Aarey is the Head of the Institute. Cattle market, Goregaon To facilitate induction of new animals at Mumbai, a cattle market has been setup at Goregaon near the Railway Station. The cattle brought for sale from other States are given accommodation on temporary basis in the market. They are charged fee per animal per day till they keep the animals in the market. Production of Milk and Milk products At present Milk and Milk products i.e. Energee, Lassi, Masala Milk, Long Life Cow Milk, Shrikhand, Amrakhand, Ghee, Dahi etc. are produced. The milk and milk products are sold through Aarey Sarita/ milk booths Cattle Control Act 1976 Cattle Control Act 1976 was passed with the object of having control on keeping of animals and transport of same in Mumbai city. As per this act any person desiring to keep animals for personal use or commercial use has to take license from the Controller of Cattle. Keeping the animals without license is an offense. Later on the Act was extended in other Cities. The Act is now applicable in Nagpur, Amaravati, Aurangabad, Nashik, Solapur, Sangli, Pune, Thane, Pimpri-Chinchwad, Kalyan-Dombivali, Nanded, New Mumbai in Municipal Corporations, Mumbai. Maharashtra Rajya Sahakari Dugdh Mahasangh Maryadit Mahanand Dairy, Western Express Highway, Goregaon (East),

OPERATION FLOOD
Operation Flood was a rural development programme started by India's National Dairy Development Board (NDDB) in 1970. One of the largest of its kind, the programme objective was to create a nationwide milk grid. It resulted in making India the largest producer of milk and milk products, and hence is also called the White Revolution of India. It also helped reduce malpractices by milk traders and merchants. This revolution followed the Indian Green Revolution and helped in alleviating poverty and famine levels from their dangerous proportions in India during the era. Operation Flood has helped dairy farmers, direct their own development, placing control of the resources they create in their own hands. A 'National Milk Grid', links milk producers throughout India with consumers in over 700 towns and cities, reducing seasonal and regional price variations while ensuring that the producer gets a major share of the price consumers pay.

The bedrock of Operation Flood has been village milk producers' cooperatives, which procure milk and provide inputs and services, making modern management and technology available to members. Operation Flood's objectives included: Increase milk production ("a flood of milk") Augment rural incomes Fair prices for consumers 28

Programme implementation Gujarat-based co-operation "Anand Milk Union Limited", often called Amul, was the engine behind the success of the programme and in turn became a mega company based on the cooperative approach. Tribhuvandas Patel was the founder Chairman of Amul, while Verghese Kurien was the chairman of NDDB at the time when the programme was implemented. Verghese Kurien, who was then 33, gave the professional management skills and necessary thrust to the cooperative, and is considered the architect of India's 'White Revolution' (Operation Flood). His work has been recognised by the award of a Padma Bhushan, the Ramon Magsaysay Award for Community Leadership, the Carnegie-Wateler World Peace Prize, and the World Food Prize. Operation Flood was implemented in three phases. Phase I

Phase I (19701980) was financed by the sale of skimmed milk powder and butter oil donated by the European Union (then the European) through the World Food Programme. NDDB planned the programme and negotiated the details of EEC assistance. During its first phase, Operation Flood linked 18 of India's premier milksheds with consumers in India's major metropolitan cities: Delhi, Mumbai, Kolkata and Chennai. Thus establishing mother dairies in four metros. Operation flood, also referred to as White Revolution is a gigantic project propounded by Government of India for developing dairy industry in the country. The Operation Flood 1 originally meant to be completed in 1975, actually spanned the period of about nine years from 197079, at a total cost of Rs.116 crores. At start of operation Flood-1 in 1970 certain set of aims were kept in view for the implementation of the programmes. Improvement by milk marketing the organized dairy sector in the metropolitan cities Mumbai(then Bombay), Kolkata(then Calcutta), Chennai(then Madras), Delhi. The objectives of commanding share of milk market and speed up development of dairy animals respectively hinter lands of rural areas with a view to increase both production and procurement.
Phase II

Operation Flood Phase II (19811985) increased the milksheds from 18 to 136; 290 urban markets expanded the outlets for milk. By the end of 1985, a self-sustaining system of 43,000 village cooperatives with 4,250,000 milk producers were covered. Domestic milk powder production increased from 22,000 tons in the pre-project year to 140,000 tons by 1989, all of the increase coming from dairies set up under Operation Flood. In this way EEC gifts and World Bank loan helped promote self-reliance. Direct marketing of milk by producers' cooperatives increased by several million litres a day.
Phase III

Phase III (19851996) enabled dairy cooperatives to expand and strengthen the infrastructure required to procure and market increasing volumes of milk. Veterinary first-aid health care services, feed and artificial insemination services for cooperative members were extended, along with intensified member education. Operation Flood's Phase III consolidated India's dairy cooperative movement, adding 30,000 new dairy cooperatives to the 42,000 existing societies organized during Phase II. Milksheds peaked to 173 in 29

1988-89 with the numbers of women members and Women's Dairy Cooperative Societies increasing significantly. Phase III gave increased emphasis to research and development in animal health and animal nutrition. Innovations like vaccine for Theileriosis, bypassing protein feed and urea-molasses mineral blocks, all contributed to the enhanced productivity of milch animals. Summary Dr. Verghese Kurien had contributed towards the success of White revolution From the outset, Operation Flood was conceived and implemented as much more than a dairy programme. Rather, dairying was seen as an instrument of development, generating employment and regular incomes for millions of rural people.
A World Bank Report 1997 says:

Operation Flood can be viewed as a twenty year experiment confirming the Rural Development Vision
Criticisms Some critics of the project (cf. Ramdas and Ghotge, 2006) argue that the emphasis on foreign cow breeds has been instrumental in the decimation of Indian breeds. Foreign breeds give higher yields, but require more feed and are not suited to Indian conditions. Critics also argue that the focus on the dairy sector during this period came at the expense of development, research, and extension work in other areas of Indian agricultureThere is also the criticism that the product from the White Revolution, namely milk and dairy products (like foodgrains from the harvests using Green Revolution methods and practices) is qualitatively, not exactly 'technically', inferior to the product obtained employing traditional methods and practices geared to smaller population levels which had only to be 'scaled up' for larger populations

Sugar cooperatives
Sugar cooperatives have played a vital role and produce over 60% of sugar requirement for our country. Sugar cooperatives are mostly a post-independence development. First cooperative sugar factory to be set up in Maharashtra was at Pravara, Ahmednagar under the leadership of Padmashree Dr. Vikhe Patil and guidance of Prof. D.R. Gadgil, Dr. Vaikuntbhai Mehta and help of Maharashtra cooperative Bank. The objectives of Sugar cooperatives are; To cut and process the sugar cane, produce of members and non-members Manufacture sugar and supply to the government as per government directives. Enable modernization of farming and processing techniques and empower the farmers to produce better quality sugarcane by providing them with various techniques to increase yield. Conduct research and development to provide better quality of sugarcane and thus a higher productivity for sugar. Carry out various welfare and social activities such as health, credit and transport facilities, education, cultural activities, etc.

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A group of farmers come together and form a sugar cooperative because sugar cane requires processing. All farmers will pull in their money from their personal funds and invest their money from their personal funds and invest in the construction of sugar milk. A managing committee usually of 18 people and 9 board of directors. The board appoints a qualified and experienced person as chair person who in turn appoints different functional managers to run the sugar co-operative. Pravara cooperative sugar factory has been an outstanding success and it increased its capacity from 500 TCD to 4000 TCD.

Pravara was a member controlled non-official organization. It contributed both wellbeing of the members and farmers socially, educational as well as culturally. Every village in its operational area was connected with well-constructed road. Pravara was a torch bearer for other states to follow.
The government of India encourages cooperatives sugar factories by giving preferential treatment to their over private and joint stock factories while issuing licensing. The state government existed the cooperative sugar factories by contributing to their share capital.

The cooperative sugar factories are also considered successful as instruments of rural development just like the Anand Dairy Co-operative of Gujarat. SUGAR LOBBY Lobbying (also Lobby) is the intention of influencing decisions made by legislators and officials in the government by individuals, other legislators, constituents, or advocacy groups. A lobbyist is a person who tries to influence legislation on behalf of a special interest or a member of a lobby. Also, governments often define and regulate organized group lobbying that has become influential. Sugar lobby refers to a lobbyist or group of lobbyist in the sugar industry. Origin of the powerful sugar lobby in Maharashtra dates back to the 1950s. Post-Independence, cooperatives formed an integral part of the Congress vision of rural development with local initiative. A special status was accorded to the sugar cooperatives and the government assumed the role of a mentor by acting as a stakeholder, guarantor and regulator. Persistence of the maze of regulations instituted five decades ago, despite its stated original rationale being let down, suggests that it is by active design of well-established vested interests. The clarion call of the times is a fresh start with minimal regulations. Many problems and initial market failures that may occur cannot be worse than continuing the saga of government failure. Famous sugar factories are Pimpalgaon, Mankeshwar, Radhanagari. Sugarcane Prices Statutory Minimum Price (SMP) is fixed by Govt. of India. SMP is linked to recovery rate of 8.5% and specified premium is fixed for every 0.1% increase. SMP varies factory wise. State Advised Price (SAP) is price fixed by state government. SAP is flat price and does not vary across different factories. SAP is not binding but SMP is the binding price The sugar factory in India has been facing many problems although the output of sugar has increased. The problems have led to the closure of many co-operatives in the Maharashtra. The reasons or closures are both natural as well as created one. The problems are;

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1. Political influence and interference in the functioning of the co-operatives and using co-operative for personal motives at the cost of the co-operation. The co-operatives have thus become an innocent victim of the political rivalry among leaders. 2. There has also been a lot of interference by the government in the management and functioning of the sugar factories. Earlier the government was providing a lot of finance to co-operatives but withdrew the support forcing the co-operatives to shut down. 3. Corporation at alarming rates among the top level management is said to be another reason for the closure of sugar mills. Funds were miss appropriated to a great extend and even the day to day operations could not be carried out. 4. Earlier the sugar industry was protected from competition from other sugar factories. A farmer had to sell and supply the sugarcane to the prescribed factory. So the factory procured sugarcane regularly from the grower at a fixed rate. Government later did away the system of zoning (1997) and farmers could sell their produced to the one who gave the highest price. Many co-operatives had to close down due to zoning 5. The supply of sugarcane was not constant and when there was no supply the amount of ideal time or stoppage lead to heavy issues. 6. A large number of co-operatives have been declared sick nuts. Many are not functioning at their full capacity due to lack of sugar industries.

Deficiency in Sugarcane produced; hence sugar mills have to close down earlier than usual. Most sectors have become sick, working for only 122 days a year. The cane produced mostly goes to the Gur and Khandsari units and 25% comes to the sugar mills. Government policy regarding sugar is a more important factor for the fluctuation in the area under sugarcane. When the cane prices are fixed low, the area under cane decreases and vice-versa. This in turn influences the availability of cane to the mills. Further the government policies on levy prices, monthly release in opevenatinn nuts, exp-important policy, licensing of sugar units, irrigation policies, financing of loans, all these have far reaching impact on the sugarcane area and the count of sugarcane produced. Hence only a long term consolidated policy will be a solution to the present mills. Carefully planning and proper rejuvenating efforts of the sick segments in the sugar economy is needed. Prosperity of this private industry affects millions of rural people, consumers and producers of several hundred allied industries.
Controls on Sugar

Sugar falls under the Essential Commodities Act, 1955 and hence the government is permitted to impose a levy quota, that is, procure a certain per cent of the sugar at a subsidized price to be sold via the Public Distribution System (PDS) at prices lower than the free market price within India. The objective of this compulsory procurement is to supply sugar to the lower strata of society at a subsidized price. Levy price is a cost plus price thus resulting in the government paying more to the high cost inefficient northern factories and effectively imposing a hidden tax on relatively efficient factories of Maharashtra. As a natural consequence of levy procurement, the free sale price is higher than would have prevailed in its 10absence. However, distortions on this front have sought to be reduced in recent years with the share of levy sugar having come down to 10 per cent as compared to 65 per cent where it stood in 1984-1985. 32

The free sale quota too is controlled by the government via a monthly release mechanism. This provision was made under the Sugar (Control) Order, 1966. The rationale for this control is to ensure stability in sugar prices, since sugar production takes place for about five to six months a year and consumption happens all year round. It has been observed that during periods of good availability, the government via the mechanism of monthly release has assisted the sugar industry with cheap credit and storage facilities and export incentives in the name of providing a fair price to the producer.

Zoning Laws Two Forms of Zoning:A) Strict in 1984 B) Diluted in 1997 Its objectives To reserve a specified area around every factory for that factory alone. Cane is a perishable crop that needs to be crushed after harvesting Reserving area for the factory would prevent factories from being starved of raw material and cane growers in turn would have an assured market

The sugar lobby benefits if NREGS fails

Published: Monday, Nov 14, 2011, 8:30 IST By Sandeep Pai & Gangadhar S Patil | Place: Mumbai | Agency: DNA Shivaji Rupji Rathod, 52, and his wife, residents of Palam taluka in Parbhani district, migrate to Solapur every year to harvest sugarcane. Back home, on his small plot of land, he can only grow a single crop. That is not sufficient for him to make ends meet. The Rathods spend at least 15 hours a day chopping 1.5 tonnes of cane and earn around Rs200 in Solapur. Shivaji says if he had a choice, he would not opt for this work ever. In 2008, when the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) was introduced across the state, it came as a boon for people like the Rathods who enrolled in the scheme and worked for three months from November 2010 on. However, much to their despair, they have not been paid wages to date. The Rathods are among lakhs of villagers who remained in their native villages in 2009-10 and 2010-11 for NREGS work, only to be denied wages. There are others who registered for work but didnt get any. They have also not been paid unemployment allowance that is mandatory as per the NREG Act (NREGA). To ensure survival, people have begun migrating again and are looking for cane-harvesting work. Nearly 10 lakh villagers migrate every year in search of work. DNA has learnt that sugar cooperatives lobbied hard for the non-implementation of NREGA so that they could reap the benefits of cheap labour. There is a lot of pressure on officials implementing NREGS from their political bosses to dilute the scheme, said KE Hardas, states former deputy director for sugar. If NREGS were to become a viable option for villagers, their bargaining power with the sugar lobby would grow. This would be against the interests of the lobby, said Ashwini Kulkarni, policy analyst and NREGS expert. Therefore the attempt to show that there is no demand for work and the poor implementation of the scheme. DNA found that in Pune, Solapur, Satara, Sangli and Kolhapur, work has not been provided in even 5% of the total number of panchayats. According to the Vasantdada Sugar Institute, these five districts contribute more than three quarters of the states sugar production. This isnt a coincidence, say experts

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and officials. The cane farmers and sugar cooperatives controlled by top politicians from the Congress, NCP and BJP do not mind an increase in the prices of pesticides and fertilisers because they are subsidised for them by the government, said Kulkarni, but any increase in labour costs would cut into their profits. Many argue that the demand for jobs in these sugar-rich districts is less because most parts are irrigated and others are industrialised but data sourced from the NREGS website shows that these five districts constitute more than 30% of the job demand in the state under the scheme. In other districts, particularly in Marathwada, the state government has been delaying payments and not registering job demand. This region lacks natural resources and is prone to drought. Nearly 32% of its 64,818 sq km area lies in a rain-shadow region. A similar trend is seen in other parts of the state. The percentage of total expenditure to the total amount paid as delayed payments is highest in the state, at 40%, when in states such as Andhra Pradesh it is less than 5%. The figure for UP and Bihar is 10% and 13% respectively. Not only are payments under NREGS delayed, DNA also found that close to one lakh people were not paid unemployment allowances. Experts believe this number is underreported as in many places those who register for work do not get receipts. Rajan Kshirsagar, general secretary of the Maharashtra Rajya Gram Rozgar Sevak Sanghatana, said by denying work and delaying payment of wages, the government is making people lose faith in NREGS. People in Marathwada dont see NREGS as a viable employment option anymore, he said. The delay in payment of wages ranges from three months to a year. DNA has copies of letters written by trade unions and citizens groups demanding registration of work and complaining of delayed payments in Parbhani and Nanded districts. After a series of protests, the deputy chief executive officer of the Parbhani zilla parishad assured people that outstanding wages would be paid within 48 hours. That was three months ago. The wages have not been paid to date. A letter written by Kshirsagar to Union rural development minister Jairam Ramesh said several labourers from Panewadi in Jalna district were not paid their dues since April this year. A district collector admitted that the states guidelines are not proper and fund allocation to various districts is poor. Because of this, there has een a delay in the payment of wages. As a result, people are migrating for cane-cutting work, he said. Purnima Upadhyay of NGO Khoj told DNA that when Lok Sabha member from Baramati Supriya Sule visited Melghat in Amravati district a few days ago, thousands of people demanded work under NREGS. They said if work is not provided soon, they would have to migrate in large numbers, said Upadhyay. DNA visited several villages in Nanded, Hingoli and Parbhani districts to find that villagers are migrating in larger numbers this year. Last year, most of them had stayed back in the hope of finding work under NREGS. I havent received money as yet for last years work, so I have no option but to migrate, said Vimalbai from Sugaon village in Nanded. Under NREGA guidelines, in the event of a delay in payment of wages, workers are entitled to compensation as per provisions of the Payment of Wages Act, 1936 - the cost of which has to be government as yet.borne by the state government. But even this guideline has not been notified by the state

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MAHARASHTRA GOVT WILL NOT FIX SUGARCANE PRICE: SHARAD PAWAR

Published: Tuesday, Dec 27, 2011, 11:28 IST By DNA Correspondent | Place: Pune | Agency: DNA
Union agriculture minister Sharad Pawar on Monday made it clear that the state government will not play a role in deciding the price of sugarcane and the sugar factories will have to take a decision on the pricing of sugarcane. Pawar also said that if the factories quote a higher price than their capacity to pay and incur a loss, the state government will not take the responsibility for the recovery of that loss. Pawar made this statement against the backdrop of recent agitation by leader of Swabhimani Shetkari Sanghatana and Member of Parliament Raju Shetty in Pawars own backyard Baramati for higher price for sugarcane. Pawar was speaking at the 55th annual general meeting of Maharashtra State Cooperative Sugar Factories Federation at the Vasantdada Sugar Institute in Manjari on Monday. Chief minister Prithviraj Chavan, deputy chief minister Ajit Pawar, speaker of state assembly Dilip Walse-Patil, president of federation Vijaysinh Mohite Patil and state ministers Harshawardhan Patil, Jayant Patil and Baban Pachpute were present. Addressing the members, Pawar said, The administrators and members of sugar factories have practical knowledge of sugar production, cost and market conditions. Then, why do they depend on the state government to decide about the price of sugarcane? It is not the responsibility of the state government to decide the sugarcane price. The sugar factories will have to decide what price they will be offering to the farmers for the sugarcane. The sugar factories will have to quote the sugar price as per their capacity. If they offer a price higher than their capacity and fail to give that to the farmers, the state government will not help such sugar factories to recover their losses, Pawar said. Speaking about the recent amendment in the constitution regarding the cooperative societies, Pawar said there has been an amendment in the constitution regarding the cooperative societies in the recent Lok Sabha session which will be applicable from January. According to the amendment, if any cooperative society in the country is suspended by the Reserve Bank of India (RBI) and an administrator is appointed on the society, the society will have to conduct elections for the new board members within six months. The board of directors will also have maximum 21 members. Chief minister Prithviraj Chavan said, The state government is in talks with the RBI for getting a bank license and status for Maharashtra State Cooperative Bank. It will have to upload audited balance sheets on its website to ensure transparent functioning. Speaking about the sugar industry in the state, he said, The crushing of sugarcane in all factories will be completed by April end next year and no sugarcane stock will be left, which is a good sign. However, due to the less rain this year, the production will be less. We have requested the prime minister to open the international market for exporting sugar and he has agreed principally. However, due to the slowdown in the international market, rupee has become weaker in comparison to the dollar. Hence, the exporters will get less price for sugar in the international market and the Centre also will not be able to give financial support, he added.

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