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Case Problems · Q12

Q.A group of sugarcane-growing farmers in Maharashtra is tired of selling their cane cheaply to a privately owned sugar mill that keeps most of the profit for its owners. They want to set up and own a modern sugar factory themselves, so that the farmers who grow the cane also share in the profit of processing it.

(i) Which historic Maharashtra example inspires this idea, and where and when was it first set up?
(ii) Which feature of co-operation makes the farmers — not outside owners — the owners of the factory?
(iii) State one economic benefit the farmers gain from this co-operative arrangement.
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This case reflects the very reason co-operative sugar factories were created in Maharashtra.

  1. The historic example: The idea is inspired by the first co-operative sugar factory in India, set up at Pravaranagar, in Ahmednagar district, in 1950, founded by Vithalrao Vikhe Patil with the guidance of Dr. Dhananjayrao Gadgil. There, ordinary sugarcane farmers became the owners of a modern sugar factory for the first time.
  2. The feature that makes farmers the owners: In a co-operative, the members themselves are the owners, and the society is run for their service and benefit (a service motive, with democratic member control), rather than for the profit of outside investors. Because the farmers register the society and become its members-cum-owners, it is they — not outside capitalists — who own and control the factory. …

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