AGRO PROCESSING

Types of activities came under the category of “agricultural processing”.

3. Co-operatives sugar factories

5. Co-operatives rice mills.

7. Co-operative spinning mills.

9. Co-operative grinning and pressing factory.

11. Khandsari sugar.

13. Jaggary(Gul)

15. Tadgur and related other products.

17. Co-operative oil mills.

19. Ancillary units like: Bakery products, spices, pickles, jam,and jellies, syrups and
food products, dal mills, flour mills etc.
FOOD PROCESSING:

To give importance to the development of food processing industries in the country,

the Ministry of Food Processing Industries was set up in July1988. This ministry was
made a department and brought under the ministry of Agriculture.
In the era of economic liberalisation, the Department acts as a catalyst for bringing in
greater investment in the sector, encouraging exports and creating a conductive
environment for healthy growth of Food Processing Industry.

The consumer food industry mainly consist of ready to eat or ready to cook products
Like cocoa based products, soft drinks, biscuits, pasta products, bakery products etc.
All India Bakery is the largest of processed food industries. The two major bakery
Industries are bread and biscuits, which account for 82% of total bakery products.

The annual production of bakery products is estimated to be in excess of 30-lakhs

tonnes. Production of bread and biscuits in India is estimated to be around 15 lakhs
tonnes in organised sector and 11 lakhs tonnes in unorganised sector. Another wheat-
based product known as pasta product such as Vermicelli, macroni, noodles are gaining
popularity. Nearly 20 units are engaged in manufacturing of cocoa products like
Chocolates, cocoa base malted milk products with production of 3400 tonnes appx.
Production of soft drinks has increased from 5670mill bottles in 1999 to 6320 mill bottles
in 2000.
The department of food processing industries administers the fruit product order
(FPO) 1995. The order aims at regulating sanitary and hygienic conditions in manufa-
cturing of fruit products. To ensure good quality products manufactured under hygienic
conditions, FPO order lays down the minimum requirement for:
1.Santary and hygienic conditions of premises, surrounding and personnel
2. Water to be used for processing.
3. Machinery and equipment
4. Product Standards

The problems of Processing co-operative Societies are:

1.Faulty Price Policy

2.More percentages of societies in loss

3.Domination of private traders.

4.More period for establishment

5.Scarcity of managerial personnel

6.Shortage of working capital

7.Fluctuation in prices
REMEDIAL MEASURES:

3. Need for primary planning

5. Right size

7. Regular supply of raw materials

9. Availability of technical knowledge

11. Appointment of trained staff

13. Government Assistance

CO-OPERATIVE SUGAR FACTORIES:

OBJECTIVES:
1.To cut the sugarcane of members as well as of the non-members in the area of
operation of the factory.

2.To encourage the members to use the modern techniques, improved variety of sugar-
cane and modern methods of agricultural production.

3.To encourage the members for self-help, self-dependence, thrift and to extend
co-operation amongst the members and to the sugar factory.

4.To purchase agricultural land and cultivate sugarcane of the best variety to supply
better seedlings to the members.

5. To understand educational, social, cultural and health activities for the members and
Public in general.
CO-OPERATIVE SUGAR FACTORIES IN MAHARASHTRA:

The Pravara co-operative sugar factory, set up in1950-51 in ShriRampur Taluka of

Ahmed Nagar District of M.S., was an outstanding success and inspired other sugar-
cane growers and also M.S. Govt. to set up similar sugar factories in the state under
Co-operative ownership. The Govt. of India also adopted a policy of encouraging co-
operative sugar factories by giving preferential treatment to them over private and
joint stock factories, while issuing licenses. M.S. state Government assisted the
co-operative sugar factories by contributing to their share capital, but no other subsidies
or privileges were granted to them. D.R. Gadgil and V.L. Mehta, played an important
role in assisting and guiding the co-operative sugar factories in state. Like “Anand
pattern” Dairy Co-operatives of Gujrat, Co-operative sugar factories of M.S. are also
Considered successful as instruments of rural development.

Now, it has been widely recognized that co-operative sugar factories in M.S. have made
significant contributions to the regional economic development of the areas around
them .They have initiated several growth oriented welfare schemes, which has benefited
not only the members but the region also. A sugar factory, helps in promoting various
economic activities in the rural areas apart from generating direct and indirect
employment. It also enhances transport and communication links with urban centres.
provide medical and educational help to rural people in the area of operation of co-op
sugar factory. It also helps in generating various ancillary activities for the local farming
population.
In M.S., a small amount from the earnings of the sugar-grower members is kept side
every year for taking up ancillary activities such as modern poultry, irrigation, credit
banks etc. Also, many sugar co-op in M.S., opened school/colleges in their areas for
providing technical higher education. Many co-op sugar factories have hospitals with
modern techniques and equipments and provide medical facilities to the adjoining
villages. Some of them has also undertaken, several lift irrigation schemes for the
benefit of farmers. In M.S., Pravara,Warna,Akaluj,Rethare, Sangli and Sukarale have
established their own educational centres.

They have contributed significantly to the creation of basic infrastructure facilities in

their own areas. The factories have undertaken several schemes such as distribution
of improved varieties of seeds, supply of chemical fertilizers, subsidy for cane plantation
research information, soil testing technical guidance and so on. They have established
consumers co-op stores in rural areas as Warna Bazaar, Vasant Bazaar, Ajinkya Bazaar
etc.The dynamic progressive leadership of M.S. in general and Kolhapur region in
particular has always worked as a model for others.

The sugar industry has immense potentiality for diversification by using its by- products.
Shri Warna co-op sugar factory of Warnanagar (M.S.) have done well. This factory has
established not only distillery and paper plants but also promoted poultry and dairy.
They have established Warna Co-op Bank,Warna Bhagini Mandal for women, fruits and
vegetables processing units, Talim mandal for youth etc.
PROBLEMS OF SUGAR CO-OPERATIVES:

1.Weak share capital base

2. Unhappy Consumers

3.Audit problems

4. Problems of under utilisation of sugar units

5.No profitable use of bye product

6. Neglected Cane Cutters and workers.

7.No return to state Exchequer

8.Keen competition over leadership.

9. Corruption in top management.

10. De-zoning
CO-OPERATIVE RICE MILLS:
Peddy is the agricultural produce coming out of the farm. It cannot be consumed as it is.
It is required to be husked and converted in to rice for bringing it in to consumable
condition.Therefore rice-mills are found in the paddy growing area.
The objectives are as follows:
1.To husk the paddy of members and non-members.

2.To collect levy rice as per the government directives.

3.To sell the husk to the dairy co-operatives, poultries or others.

Problems of paddy mills are:

1.Lack of adequate capital, and margin money funds.

2.There is no technical guidance.

3.No sufficient godown capacity.

4.Delay in getting milling equipments and transportation difficulties to states like Bihar,
Assam etc.
5.Poor grading and lack of adequate quality control and unhealthy competition from the
poor traders.
6. Untrained manager and poor management.
PADDY PROCESSING IN INDIA (THE TECHNICAL BACKGROUND):

It is well known that paddy milling is one of the largest industries of India. Between 50
and 60 million tonnes of paddy is processed annually by one method or the other. Paddy
consists of 20% husk, 6% bran and 72% of endosperm. The processing of paddy
Involves drying, cleaning, parboiling in certain areas), husking, polishing, separating and
grading.
Paddy is normally harvested at 16 to 18% moisture and reduce to 14% for safe keeping
and milling. In India the paddy is mostly sun dried. Mechanical drying came to be
introduced only in 1965 when the first six modern units were setup in co-op sector. The
sun drying of paddy is cheap and quick, but the loses in open yard drying from birds and
rodents, sub checking etc. are sizeable. It has been estimated that 15% of the total paddy
milled is lost in this way. Mechanical drying helps to reduce the moisture content to the
desired level. This process iscostly(About Rs. 1.2 per quintal) . However it reduces the
field losses and increases the quantity harvested up to 12%.It also facilitates drying in
wet weather. But adoption of this process by both farmers and millers in this country has
been slow due to lack of knowledge and familiarity with the equipment, as also due to
relatively high cost.
About 50% of the Indian paddy is parboiled . It reduces breakage in milling, improves
shortage life and helps to preserve the vitamins and protein contents of the grain.
The most common method of processing paddy however today is by hand pounding.
About 44% of India’s paddy is processed bi this method as it has the lowest cost when
Family labour is employed and can be done in interior unelectrified areas. But when hired
Labour is used, it costs more.
Although The cost of parboiling and mechanical drying is estimated at Rs.2 to 2.5
per quintal. The output is often more than offsets parboiling costs,
therefore it can be sold at cheaper Rate.

The estimated cost of processing a ton of paddy by hand pounding is Rs.40 to 50 rice
mills. The husk and bran are removed in one operation and the rice can be polished by
second or third pass through the machine. The hullers were introduced around1920 and
They number about 50000.Their avg. milling capacity is 2 tonnes per 8hour a day. They
mill appox. 30% of paddy in India. Their main advantage is low cost of equipment about
7000/- Rs and therefore they continue to service for a long time to come.

With technological developments, more sheller type and modern rice mills are being set-
up to get a higher rice out-put, high by-product recovery at milling costs. Sheller mills are
quite popular in India and are about 8000 in number. They mill about 25% of the paddy
crop.They Were first designed 20 to 30 years back and therefore need to be modernized
for gettinghigher output to rice, bran and germ for getting oil extracted from these
by-product.
The Rubber roller-shellers are the latest innovation in rice milling. They minimizes
grain breakage. The output increased from 65% to 72% and the broken grain
percentage is reduced. They were adopted in India in 1965.The present
modernized unit incorporates .

In addition, separate mechanical drying equipments, storage silos, modern

parboiling system, precleaners, mechanical handling, paddy separators polishers
and grain separating and grading equipment. Rubber roller shellers are the main
part of improvement while other features are meant to reduce handling costs,
storage losses, rice breakage and increases output of quality bran while providing
rice of a uniform grade and polish.
CO-OPERATIVE SPINNING MILL

The co-operative spinning mills have made progress in Maharashtra in Vidarbha,

Marathwada and Ichalkaranji. The spinning mills co-operatives are organized by cotton
growers, weavers and power loom-owners, to prepare cotton thread. This activity also
helps to increase demand for cotton which is cash crop and thus beneficial to the cotton
growing farmer also.
NCDC gives finance, to encourage the cotton growers to organize the co-operative
spinning mill under centrally sponsored scheme.
a.5% of the total project cost is to be raised by spinning mill by way of share capital
from members.
b.20% is given by state government.
c.55% is given by NCDC.
d.20% is to be raised from financial institutions like IDBI or IFCI.
The All India Federation of Co-operative Spinning Mills is organised with following
objectives:
17. Helping in the preparation of project report.
18. Technical guidance for the purchase of new machinery or modernisation of old
machinery.
3.To guide the management of the spinning mill.
4.To help the spinning mills in the formulation of purchase and sale policy.
5.To guide the spinning mill in getting financial accommodation and help them in
preparing documents for loans.
YARN REQUIREMENT OF HANDLOOMS AND THE ROLE OF CO-OP SPINNING MILL

Due to depressed conditions noticed in the handloom sector, rendering a large section of
population economically weak, the New Economic program launched in 1975 and the need
for central plan call for vigorous efforts for the reorganization and revitalization of handloom
industry on sound lines. Ad-hoc policy making and defective implementation of policies
have been mainly responsible for democracy and depression of the important segment of
decentralized textile sector.
In 1974 there were around 36 lakh handlooms in the country and 38 lakhs during 1976.As
traditional weavers are located in different parts of the country, it is difficult to place the figu
of the Handlooms at an exact level. Therefore, suggestions have been made from time to
To conduct census of handlooms, so that policies pertaining to planning, development,
assistance etc. can be formulated clearly and enforced properly to achieve the expected re

About 53% of co-operative sectors are there by1983.Yet qualitatively, the majority of
co-operatives have remained non-viable. The basic reason for weakness of handloom
units isLack of rationalized institutional structure. The inability to cover the total requiremen
of Handloom weaver, particularly those pertaining to steady supply of raw materials at
reasonable cost, finance and marketing has contributed to their decline.

An integrated co-operative structure, covering these requirements right from the stage of
raw material to the finished product can go long way in providing stability to the handloom
textile industry.
CO-OPERATIVE GINNING AND PRESSING FACTORIES:
Cotton can be pressed in to bales and can be packed to keep it clean by taking out the
cotton seeds. With the reduction in volume, transport cost will be reduced and the cotton
Bales will be demanded as raw material from co-operative spinning mill.
The cotton seeds are supplied to the oil mill which bring down the price of cotton. In
M.S. there is cotton procurement scheme and the cotton growers have to give their
Cotton to the centres.
If the cotton growers come together and form a ginning and pressing factory and if this
Factory enters in to the agreement with the co-operative spinning mills for the supply of
Cotton then in that case every one will benefit.
The agriculturist will get good payment for their cotton, the ginning and pressing factory
Will get sufficient business and the co-operative spinning mill can get the raw material
Easily. By creating an agreement with the weavers co-operatives societies and
Power loom societies, cotton thread can be supplied by the spinning mill.
NCDC helps the installation of co-operative ginning and pressing factory.

KHANDSARI SUGAR INDUSTRY:

It is raw sugar and has little demand. This industry is not seen in the co-operative sector.
This industry is sponsored by Khadi Gramudyog Mandal. Some private people have
Started such type of units in sugarcane areas. The Khadi Gramudyog Mandal at the
Goregaon Training Centre gives training in the production of Khandsari.
JAGGARY PRODUCTION:

Sugar factories are not allowed to prepare jaggary as ancillary, or additional activity.
Jaggary production is generally taken up individually on commercial basis and not on
Co-operative basis. The Agriculture Produce Market Committees and co-operative
Purchase and sale union do sell the jaggary prepared by private persons.

TADGUL AND OTHER RELATIVE PRODUCTS:

Tadgul and Nira are prepared from the palm tree. Neera is very commonly collected and
Sold. But it is an individual business. It has got the patronage of KVIC. Neera
co-operatives can be formed as poor people have demand for it.Tadgul is cheaper but
It is said to be in toxic.

CO-OPERATIVE OIL SEEDS UNITS:

Problems faced by oil-seed co-op units are:

1. Disparities in prices of oil and oilcakes.
2.Prblem of plant shutdown.
3.Fluctuations in price of groundnuts.
4.Under utilization of installed capacity.
5.Paucity of working capital.
6.No proper system of procurement of oil seeds