Term IV

Project Report
Problems and Prospects of Sugarcane Marketing in UP
Rural Research Methods
9/25/2014

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

Submitted By
Group 5
Rishabh ABM10002 | Anurag Singh ABM10004 | Nivetha M ABM10015|
Dinesh Raju M ABM10020 | Gayathri Sirisha ABM10033

Executive summary
The aim of this project is to study the problems that Sugarcane farmers in UP face while marketing
their produce and suggest suitable solutions to alleviate them. Sugarcane farmers in UP are facing
huge inefficiencies in the cane procurement system in logistics, supply tickets issuance,
communication gap between sugar mills and farmers. These factors have made farmers to lose
confidence in sugarcane cultivation and farmers are moving to other crops. Also, the area under
Sugarcane cultivation is dwindling.
The major management dilemma identified here is if the cane procurement process is efficient or not.
The problem is to find out ways to weed out the inefficient practices existing in the current system.
Based on secondary research and also an interview with Prof. Amit Agrahari, who was instrumental in
the development of Sugarcane Information System (an IT based solution to shrink the communication
gap) research questions are formulated. Hypothesis, variables and constructs are formulated that
answer all the research questions.
Conclusive research is designed to include two sets of questionnaires to be administered to the
farmers and to the mills. The questionnaire to the farmers are designed to capture demographics,
challenges, barriers, awareness of SIS, perception and impact of SIS. An exploratory research has been
conducted in the sugar mills in order to find if there are any issues from the mills perspective as SIS is
installed in the mills.
The sampling technique that is to be used for the survey would be non-probabilistic judgmental
sampling. The survey would be administered to each farmer personally. The data analysis techniques
& statistical tools have been used for testing each hypothesis.
From our research, we could conclude that the procurement system of sugarcane is functioning well.
However, we could dig out the problems faced by the problems as well as the sugar mills and the
underlying reasons were analyzed in our report.

Table of Contents
Executive summary ...................................................................................................................................... 1
1.

Introduction.......................................................................................................................................... 4

2.

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

3.

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

4.

Development of Managerial dilemma ................................................................................................ 5

5.

Management problem ......................................................................................................................... 6

6.

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

7.

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

8.

Research design.................................................................................................................................... 6
Exploratory Research ........................................................................................................................ 6
Conclusive Research ......................................................................................................................... 6

9.

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

10.

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

11.

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

12.

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

Farmers questionnaire.................................................................................................................... 10
Exploratory research questionnaire for sugar mills........................................................................ 12
13.

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

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

Paired T-Test ................................................................................................................................... 13
Descriptive Statistics ....................................................................................................................... 13
Factor Analysis ................................................................................................................................ 13
Dispersion Measures ...................................................................................................................... 13
Frequency Distribution (Histogram) ............................................................................................... 13
Text Analytics .................................................................................................................................. 13
14.

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

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

15.

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

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

Historical Timeline ...................................................................................................................... 14
Institutional Map ........................................................................................................................ 14
Resource Map ............................................................................................................................. 15
Dakiya Tiwari, Nigohi ...................................................................................................................... 16
Historical timeline ....................................................................................................................... 16
Institutional Map ........................................................................................................................ 16
Resource Map ............................................................................................................................. 17
Mohanpur, Roza ............................................................................................................................. 18
2

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

Institutional Map ........................................................................................................................ 18
Resource Map ............................................................................................................................. 19
16.

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

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

17.

Results of Exploratory Research in the mills ................................................................................. 22

Procedure followed by mills ........................................................................................................... 22

Issues with sugarcane farming........................................................................................................ 22
Steps required to improve efficiency of sugarcane farming .......................................................... 22
18.

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

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

Functional facts of the mill ......................................................................................................... 23
Byproducts of Sugarcane and Marketing ................................................................................... 23
SIS implementation ..................................................................................................................... 23
Impact of SIS ............................................................................................................................... 23
The Kisan Sahkari Chini Mills Ltd., Tilhar ........................................................................................ 23
Services provided to the farmers................................................................................................ 24
19. Challenges faced in implementing SIS ................................................................................................. 24
20. Comparison of Cost of production ...................................................................................................... 24
21. Payments issue ..................................................................................................................................... 24
22. Other problems explored..................................................................................................................... 25
Intercepts of Interview with Director of Sugarcane Research Council, Shahjahanpur (Dr.
Bakshiram) ...................................................................................................................................... 26
23. Data Analysis and Results .................................................................................................................... 26
Ways of marketing Sugarcane in UP ............................................................................................... 26
Factors that influence the means of selling .................................................................................... 27
Average yield per cultivation cycle ................................................................................................. 28
Awareness of SIS ............................................................................................................................. 28
Farmers perception of SIS Comparison across mills ................................................................... 28
Impact of SIS ................................................................................................................................... 30
a.

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

b.

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

c.

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

d.

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

Demographics ................................................................................................................................. 32
24. Conclusion ............................................................................................................................................ 32
25. References ............................................................................................................................................ 33
26. Appendix .............................................................................................................................................. 33
3

1. Introduction
The state of Uttar Pradesh (UP) is one of the major sugar-producing states in the country. The sugar
industry in the state is largely subsistence oriented and sugarcane is one of the major cash crops. The
Sugar industry of Uttar Pradesh shares a symbiotic relationship amongst the rural masses and thus,
serves as a key nerve center for the development in rural sector.
The area under sugar cultivation in the state amounts to 20.35 lakh out of the total 44.03 lakh ha area
under cultivation in the country. The production of sugarcane amounts to 11.62 million tonnes, which
is actually 39 percent of the total sugarcane production in the country. Over the year from 1961, the
state has experienced a growth of 1.38 percent, 2.84 percent, and 1.43 percent annually in
productivity, sugarcane production and acreage, respectively.
Production and Stock of Sugar in Uttar Pradesh
(2013-2014-Up to April, 2014)
(In Metric Tons)
Region

Sugar Production Season

2013-14 *

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

% of Sugar Stocks of 2013-14 and

Earlier Seasons to Sugar
Production of 2013-14 Seasons

Uttar Pradesh Central

2308055

1666510

72.2

Uttar Pradesh East

2338572

1847537

79.0

Uttar Pradesh West

1884099

1378842

73.2

Uttar Pradesh Total

6530726

4892889

74.9

India

23932122

16645021

69.6

Source: National Federation of Cooperative Sugar Factories (NFCSF)

There is a good forward as well as backward linkages in the state. Despite that, there is a considerable
instability in the industry. This is due to the interdependence and interrelationship between gur,
khandsari and white sugar. Relative differences between the price for gur and sugar cause the
instability in the Sugarcane industry. Depending upon the price differences and the acreage area,
sugarcane growers offer threat to the industry by regulating the supply of the sugarcane to the
industry, affecting their performance adversely. Despite being a leading producer, the recovery from
the sugarcane is below the national average of 9.75 percent.
The other perspective to the industry is brought by the farmers and the major mill owners. The major
problems that farmers face now a days is related to production and marketing of Sugarcane itself. The
extensive availability of natural water has made the sugarcane a normal cash crop for farmers. But
from a long time, the Sugar industry in Uttar Pradesh has now become pale due to the issues of mass
corruption, mismanagement and politicization of the industry. As a result, a large number of mills have
been closed down. A good number of mills are not even able to consume the available quantity of the
sugar in the region due to the old setups and low crushing capacity. Even the private sector also
suffers from the same plight. At one end, the demand of sugarcane has been reduced, at the other
4

sale and payments of dues has made a big problem so much that sugarcane producers i.e. farmers are
forced to burn the unutilized sugarcane. Ultimately, the biggest sufferers are the small and marginal
farmers. There are issues even in the procurement of sugarcane form the farmers field. The issues
related to improper measurement, extra freight charges, commissioning agents also add to the plight
of farmers.
Approximately 70 to 80% of the sugarcane producing farmers are dissatisfied with the current
circumstances. However, they are continuing the crop as they dont have other alternatives. Some of
the big sugarcane producing farmers have started working as middlemen. They purchase sugarcane
from small producers at the minimum support price and supply it to sugar mills on their own name.
Through its new sugar industry Promotion policy, the government of Uttar Pradesh has decided to
offer several incentives for setting up of new sugar plants. It includes the following modifications to
mention the few: exemption on entry tax on sugar, repayment of administrative charges and
exemption of trade tax on molasses, repayment of transport charges of sugarcane etc. The sole
purpose of all these measure is to attract private investment towards the industry.

2. Sugarcane Information System (SIS)

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

3. Motivation behind the project

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

4. Development of Managerial dilemma

In view of the current scenario of the Sugarcane farmers in Uttar Pradesh, it has been found necessary
to carry out a complete investigation, which explores the present status of the farmers in terms of their
efficiency in the operations of the entire cane procurement process and marketing. Thus the
managerial dilemma is,
Is the entire cane procurement process efficient?

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

6. Market Research Problem

To understand the pain points of Sugarcane marketing and give suitable recommendations to address
them

7. Research Methodology
The team started by researching our topic The problems and prospects of sugarcane farming. We did
secondary research to explore the entire cane procurement process from harvesting of the farms to
processing in the sugar mills. Research also included an interactive session with Professor Amit
Agrahari who has significant contribution in the development and implementation of Sugarcane
information system (SIS). The management dilemma and the management problem were framed to
cover all aspects of sugarcane marketing. Subsequently, the market research problem and its scope
that would be explored through this project were defined. A set of sub-research questions were
formulated to clearly analyse the market research problem.
The research designs used are exploratory research and descriptive research. Exploratory research was
conducted through primary as well as secondary sources. The team also defined hypothesis for the sub
research questions which would be analysed using data obtained from the survey. The team
formulated a checklist from the list of hypothesis, to design a questionnaire for conducting survey.

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

Different ways of sugarcane marketing in India

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

Conclusive Research
Primary data analysis will be followed with a conclusive research on the formulated hypothesis. The
survey data will be statistically analysed to test the test the research variables. Important variables for
the Conclusive research

Target population
Sampling frame
Sampling technique
6

Sample size and design

9. Sampling Design

Target Population: Sugarcane producing farmers from Uttar Pradesh

Sampling Unit: Village households or farmer groups in the sugarcane producing villages

Sampling technique: Non probabilistic

Judgmental Sampling: Non probabilistic sampling has been assumed as the population is huge and the
exhaustive list of all the farmers is very difficult to obtain. The population under study that is sugarcane
farmers is assumed to be homogenous .The villages (<3) to be surveyed would be selected; the location
and households to be surveyed to be would be selected on basis of typicality, farmer availability and
convenience. Within each village and group research will include survey from farmer representative
from following categories. (Land holding size, Education level, Experience and loan status)

Sample Size
Necessary Sample Size = ( / )2
E = maximum difference between the sample mean and the population mean = 1
Confidence Level: At 95% confidence level Z value = 1.96
Standard Deviation: Standard deviation assumed to be low due to the nature of parameters Education,
Farm size, etc.
Sample Size = [(1.96 5.76)/1]2 = 127.4 ~ 128
Required Sample Size: 128 sugarcane farmers.

10. Formulation of Research Questions

1.
What are the different ways in which UP farmers market Sugarcane? Descriptive
2.
What factors (land size, education, etc.) influence the means of selling (sugar mill, khandsari,
cooperatives, etc.) for a farmer? Correlational
3.
What is the awareness level of the farmers about usage of SIS and barriers that prevent them
from using SIS? Descriptive
4.
What is the farmers perception about Sugarcane Information System in UP? Descriptive
5.
What is the impact of the SIS on the entire cane procurement process? Causal
6.
What are the issues the farmers face while selling their crops and receiving the payments for
their crops? (Open ended questions) Descriptive

11. Hypotheses, Variables and Constructs Formulation

1.
What are the different ways in which UP farmers market Sugarcane?
H0: Less than 70% of the farmers sell their produce to the sugar mills
H1: Greater than or equal 70% of the farmers sell their produce to the sugar mills
H0: Greater than or equal to 10% of the farmers sell to local khandsari units / set up their own
khandsaris
H1: Less than 10% of the farmers sell to local khandsari units / set up their own khandsaris

H0: Greater than or equal to 20% of the farmers sell their produce to cooperatives, third party or other
farmers
H1: Less than 20% of the farmers sell their produce to cooperatives, third party or other farmers
Variable
1) Ways of marketing Sugarcane (Nominal)
Construct: Ways of marketing sugarcane/Means of selling sugarcane
2.
What factors (land size, education, experience, source of investment) influence the means of
selling (sugar mill, khandsari, cooperatives, etc.) for a farmer?
H0: Large scale farmer (farm size >= 4.5 acres) do not prefer to sell most of his produce to the sugar
mills
H1: Large scale farmer (farm size >= 4.5 acres) prefers to sell most of his produce to the sugar mills
H0: Level of education does not affect the means in which the farmers sell their produce
H1: Level of education affects the means in which the farmers sell their produce
H0: Experienced farmers (farmers who have been growing sugar cane >= 5 years) do not prefer to sell
their produce to the sugar mills
H1: Experienced farmers (farmers who have been growing sugar cane >= 5 years) prefer to sell their
produce to the sugar mills
H0: Farmers are not obligated to sell their produce to the cooperatives if they have taken a loan from
them
H1: Farmers are obligated to sell their produce to the cooperatives if they have taken a loan from them
Variables
2) Farm Size (Ratio)
3) Education level (Ordinal)
4) No. of years in Sugarcane Farming/Experience (Ratio)
5) Amount of produce (Ratio)
6) Loan status(Yes/No) (Nominal)
7) Loan Amount (Ratio)
Construct: Factors of influence
3.
What is the awareness level of the farmers about usage of SIS and barriers that prevent them
from using SIS?
H0: All farmers in the village are not aware of SIS
H1: All farmers in the village are aware of SIS
H0: Less than 90% of farmers access SIS through mobile phones
H1: Greater than or equal to 90% of farmers access SIS through mobiles

Variables
8) SIS awareness (Nominal)
9) Means through which SIS is accessed(Website, IVRS, SMS) (Nominal)
10) Purposes for which SIS is used (Nominal)
Construct: Awareness
4.

What is the farmers perception about Sugarcane Information System in UP?

Variables
11) Information availability(Interval)
12) Saves Transportation cost (Interval)
13) Effectiveness of query handling (Interval)
14) Accuracy of information (Interval)
15) Security/ Privacy of information (Interval)
16) Confidence to increase area under cultivation (Interval)
17) Effectiveness of advisory services (Interval)
18) Productivity increase (perception) (Interval)
19) Profitability (Perception) (Interval)
Construct: Image /Perception

5.
What is the impact of the SIS on the entire cane procurement process?
H0: SIS has not improved the realisation of better prices and transparency
H1: SIS has improved the realisation of better prices and transparency
H0: SIS has reduced the number of trips of the farmer to the sugar mills by < 75%
H1: SIS has reduced the number of trips of the farmer to the sugar mills by >= 75%
(A total of Rs. 522 crores were spent only on travel by 29 lakh farmers)
H0: SIS did not lead to the increase in the issue of supply tickets
H1: SIS did lead to the increase in the issue of supply tickets
Variables
20) No. of trips made by farmer in a year (Before and after SIS) (Ratio)
21) Supply tickets issued (Before and after SIS) (Ratio)
22) Timing of supply tickets issuance (Nominal)
23) On-time payments (Interval)
24) Transparency in Cane Weighing (Interval)
25) Pricing for Sugarcane (Interval)
26) Productivity (Perception)
27) Profitability (Perception)
28) Total amount of sugarcane supplied to factories (Ratio)
Construct: Impact

12. Questionnaire Design

Farmers questionnaire
1.
How do you market your Sugarcane produce? Also mention the percentage. (How much % for
each way, if you choose multiple options) (RQ1, Variable 1)
Sell to sugar mills (%)
Sell to khandsaris / Set up own khandsari (%)
Sell for consumption in local market (%)
Sell to cooperatives (%)
Others (Note down other methods and %)
2.
What is your farm size (under Sugarcane cultivation)? (RQ2, Variable 2)
3.
What is your education level? (RQ2, Variable 3)
o Not educated
o Primary (Class 1-5)
o Secondary (Class 6-10)
o Higher Secondary (Class 11-12)
o Graduation
o Post-Graduation
4.
Have you undergone any skill enhancement vocational training? (RQ2, Variable 3)
5.
How many years have you been farming Sugarcane? (RQ2, Variable 4)
6.
What is your average yield per cultivation cycle? (RQ2, Variable 5)
7.
Have you taken a loan for Sugarcane cultivation? (RQ2, Variable 6)
o Yes, From where?
o No
8.
If yes, are you obligated to sell your produce to any cooperative due to the loan?
9.
What is the loan amount and interest rate? (RQ2, Variable 7)
10. What are the logistics issues you face while transporting your crops to the mills/ purchasing
centre? (RQ6)
11. Bank Accounts and Payments (RQ6)
a. Do you have a bank account?
o Yes
o No
b. If No, How do you get your payments?
c. What are the other issues related to bank accounts and payments?
12. Are there any grievance forums in place where the issues are addressed? (RQ6)
o Yes (Details about the same)
o No
If Yes, Rate your satisfaction level on the functioning of the forum (1- Least satisfied, 5- Very
satisfied)
13.

Are you aware of Sugarcane Information System? (RQ3, Variable 8)

o Yes
o No
10

If Yes, Proceed
14. Do you have any feedback or suggestions or improvements that you wish to see in SIS that
(according to you) are lacking in this system? (RQ6)
15. How do you access SIS? (RQ3, Variable 9)
Mobile (SMS)
Website
Interactive Voice Response System (IVRS)
I do not use SIS
16. What uses of SIS are you aware of? (RQ3, Variable 10)
Supply ticket information
Queries
Advisory services
Others
17. For what purposes do you SIS? (RQ3, Variable 10)
Supply ticket information
Queries
Advisory services
Others
18. Rate the following Statements (RQ4, Variables 11-19)
(Strongly Agree 5, Strongly disagree 1)
Parameters

Strongly
Agree

SIS has improved information accessibility

SIS has saved transportation cost for you
Query handling in SIS is useful to you
Information that you get is accurate
You have information privacy and security
You have gained confidence to increase
area under Sugarcane cultivation after SIS
Advisory services are helpful to you
Your productivity has improved
Your profitability has increased

19.

Do you think farmers can benefit from SIS?

o Yes
o No, Why?
11

Agree

Neutral Disagree

Strongly
Disagree

Dont
Know

20.

21.

22.

23.

How many trips do you take for information access before &after SIS? (RQ5, Variable 20)
o Before ()
o After ()
Accessibility to supply tickets (RQ5, Variable 21)
o Before SIS ()
o After SIS ()
What is the arrival time of supply tickets? (RQ5, Variable 22)
o Before planting of crop
o After planting. Exactly at what stage?
Rate your satisfaction level on the following before and after SIS (RQ5, Variable 23 to 27)
(Least Satisfied 1, Very Satisfied 5)
o Pricing for Sugarcane
o On-time payments
o Transparency in cane weighing
o Productivity
o Profitability
Demographics
Age:
Gender:
Household size:

Exploratory research questionnaire for sugar mills

1.
What is the number of interaction between sugar mill and farmers before/after
implementation of SIS?
2.
What have been the major impacts of SIS on the sugarcane farmers and sugar mills?
3.
Has there been any increase in quantity of sugarcane procured?
4.
What sort of information is shared by SIS?
5.
Do farmers contact you for any information/guidance regarding the farming?
o If yes, what information do they seek?
6.
Are there any delays in the payments made to the farmers?
o If yes, what are the reasons for delay in payments to the farmers?
o If no, how are you managing the process efficiently and quickly?
7.
What are the challenges that you face in the implementation of SIS?
8.
Do you have any feedback or suggestions or improvements that you wish to see in SIS that
(according to you) are lacking in this system?

13. Data Analysis

Technique
Discriminant Analysis
Paired t-test
Factor Analysis
Descriptive Statistics
(Mean)
Dispersion Measures

Variables
2,3,4,5,6,7
20 to 27
11 to 19
11 to 19

Research Question
RQ2
RQ5
RQ4
RQ4

11 to 19

RQ4
12

(Standard Deviation)
Mode
Chi square Test
Text Analytics
Frequency distribution

1,8,9
RQ1, RQ3
1,8
RQ1, RQ3
Open
Ended RQ6
Questions
1,8,9,10,
RQ3
Demographics

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

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

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

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

Dispersion Measures
Range and Standard deviation will be used to find the variability of the responses for a particular
variable. This is mainly used to find the presence of any outliers.

Frequency Distribution (Histogram)

This will be used to find out the purposes for which SIS is used by most farmers and some other
applications of SIS that are not utilized by farmers due to various reasons. This will also be used for
demographics data.

Text Analytics
Text analytics tools will be used to find out the most used word in the respondents answers thereby
finding their frequencies of occurrences. This would be used to analyze the open ended questions.

14. Primary Research

Primary Data collection
For the primary research, we visited 5 villages and 3 sugar mills in Shahjahanpur district of East UP. Due
to the non-seasonality of khandsari and also since khandsari units were not prevalent in Shahjahanpur,
we could not interact with any of the khandsari units. However, we got an opportunity to talk to few
farmers who set up their own khandsaris. The total sample size surveyed is 128. 88 of the sample are
from the villages who supply their produce to the private mills where SIS has been implemented.
Hence, for the research questions where the SIS has been analyzed, the sample size considered was 88,
instead of 128.
13

The villages visited for primary research:

Dakiya Tiwari (Nigohi mill)

Bharatpur (Tilhar mill)
Milkipur (Tilhar mill)
Mohanpur (Roza mill)
Roza Yakubpur (Roza Mill)

The questionnaire was prepared with a mixture of open ended questions, alternative choice and rating
the parameters based on their perception. The sugar mills visited for primary research:

Dalmia Sugar mills Private (Nigohi)

Tilhar - co-operative mill (Tilhar)
Roza mill Birla Group (Roza)

15. Village Study

Bharatpur, Tilhar
Historical Timeline
1938

Water Canal

1958

School

1970

Diesel Engine

1988

First Tractor

1990

Television

2004

Tubewell

2006

Mobile Phones

2007

Electricity

Institutional Map

14

Resource Map

15

Dakiya Tiwari, Nigohi

Historical timeline
1956

Primary School

1965

Water Canal

1970

Electricity supply

1975

Hospital

1980

Gas Connection

1987

Television

2000

ITC E-choupal, Landline phone

2001

Computer

2003

Mobile Phones

Institutional Map

16

Resource Map

17

Mohanpur, Roza
Historical Timeline
1930

Water Canal

1960

Primary School

1980

Warehouse

1995

Gramin Bank, Landline Phone

2000

Market ,Liquor shop

2001

Gas connection

2003

Mobile Phones

Institutional Map

18

Resource Map

19

16. Comparative analysis of the villages

Parameters\Village
Educational facilities

Dakiya Tiwari
Till High School
Available

Bharatpur
Till Middle School
(8th Std)
Not available

Positive with hand

pumps & wells
70%

Positive with hand

pumps & wells
30%

Private clinic is
available & medical
store not available
Positive with hand
pumps & wells
80%

Grameen Bank &

Bank of Baroda
None

None

Bank of Baroda

None

None

Most of them are

educated till 8th Std
& few till 12th Std;
High literacy for girls
as well & decent
number of graduates
Government service
& private jobs
Sugarcane (95%)

Most of them are

educated till 5th Std;
Low literacy rate &
no girl education

Most of them are

educated till 10th
Std;
Decent number of
graduates

Government service

Government service
& private jobs
Wheat (80%)

500 cattle with 200

milking cattle; 300
Buffalos with 200
milking buffalos; 200
goat & 250 sheep
Electricity, Caste
differentiation

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

Health facilities

Water availability
Households with
toilet facilities
Bank facilities
NGOs/informal
organizations

Educational level

Other Livelihood
sources
Major crops
cultivated

Livestock

Sugarcane (90%)

Mohanpur
Till High School

50 cattle; 50 buffalo
& 15 sheep

Caste
Mobile connectivity
Problems
differentiation, road & credit facility
connectivity
From the above table, it can be concluded that Dakiya Tiwari village has better education
facilities than the other two villages. The educational institutes are located at a distance from the
places making it difficult for them to pursue their higher education. It is also observed that not
all households have toilet facilities. This tells us that the social status of the villages is still low.
Lack of proper sanitation is causing health problems. Bharatpur doesnt have health facilities as
well and the road connectivity to this place is poor. The villagers are facing issues travelling to
the towns, especially the women. It has also been observed that women are mostly pertained to
household activities and seed sowing activities only. People in Dakiya Tiwari are sending their
children to towns for higher education, whereas the other villages are not willing to send their
20

offspring to towns. Instead they want educational institutions to be established near to their
place.
Developmental activities that the villages are looking for
Dakiya Tiwari
Education institutes till
Degree
Better hospitals
Electricity
Bus stop
Medical camps

Bharatpur
High school

Mohanpur
Electricity

Medical store
Health centres
Local markets

Mobile tower
Industries for jobs
Canals
College

Social Issues in the villages

The caste system was very prevalent in the villages, the villages surveyed were dominated by Thakurs
or Pandit communities. The Gram Pradhan, the progressive farmers and all other opulent households
were belonging to upper castes signifying that Social status itself represented the financial strength
of households. In some villages caste system had dire consequences with lower caste people forced
to reside on outskirts of the village.
A lower status to the females was also visible. The villages had a low female literacy rate, small
proportion of girls (1:3 approx.) in total number graduates and postgraduates in the villages. The girls
were married at a young age, most of them were housewives. They were deprived of education and
burden of household chores expected from them.

21

17. Results of Exploratory Research in the mills

Procedure followed by mills
Sugar mills start their work from April, i.e. 2 months before the sugarcane season commences. All the
mills maintain a proper database of the farmers details in their vicinity. A detailed calendar is prepared
for individual farmer based on their production capacity.
Production capacity is estimated through field survey by measuring:

Area under cultivation

Variety of crop
Average of last two years production
Factory requirement

Final product capacity of the mill is estimated as 85% of total sugarcane production as some farmers
opt to grow vegetables for crop rotation after two ratoons. The farmers need to register themselves
with the mills by providing their details to them. Based on their production capacity, supply tickets for
each farmer is estimated and the same information is communicated to the farmers. The farmers are
given 15 days time to verify their details. After the calendar has been finalized, the farmers start their
cultivation. Sugar mills provide complete support to the farmers with respect to any information or
support they require regarding farming. The supply tickets are sent to the farmers 4 days before the
weighing process starts. The weighing process is highly transparent.

Issues with sugarcane farming

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

Steps required to improve efficiency of sugarcane farming

Commercialize early varieties of sugarcane for cultivation

Linkage between the FRP and sugarcane pricing strategies

18. SIS implementation across mills

The supply tickets are sent via SMS 4 days before the weighing process. Farmers transport their
produce to the mills using trucks, bullock carts or tractors. The traffic on the roads and the weather
forecast is also sent to farmers during the transportation period. The payment information is also sent
via SMS to the farmers.
This is a framework which has been provided by the government to be mandatorily implemented by all
the sugar mills. The implementation cost of this system is INR 0. However, the cost that is incurred in
execution of this system is the SMS cost incurred. Government offers to pay 50% of this cost as well. In
spite of the above facts, SIS system is not fully functional in all the mills. Many mills have implemented
only few services of SIS.

Dalmia chini mills, Nigohi

Respondent: Mr. Palival, General Manager
22

Dalmia chini mills in Nigohi, Shahjahanpur contributes to 1% of total UP sugar production. Production
is totally on recovery basis. Early varieties of sugarcane are procured predominantly. Sugar mills runs
at a capacity of 80% throughout the season. Issuance of supply tickets based on variety of crop.
Functional facts of the mill
About 12,000 labour required per day during sugarcane harvesting season
Sugarcane procurement within the radius of 15 km
Power production is 90 MW per annum
The payment made to the farmers in the previous year was INR 250 crores, which
averages to INR 80,000 per family. This value is on an average 40% more compared to
other crops
Byproducts of Sugarcane and Marketing
Sugarcane
Byproducts

Electricity

Ethanol

Bagasse

Molasses

Press Mud

CO2

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

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

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

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

The Kisan Sahkari Chini Mills Ltd., Tilhar

This is a cooperative mill. Farmers need to register themselves with the mill by paying the membership
fee of INR 211. SIS is not implemented by this mill. This mill claims that they are running in losses and
23

are lacking in funds to implement SIS. Each supply ticket has a fortnight validity. Priority of supply
ticket issuance is based on the variety of crop grown. They give preference to the small farmers and try
to collect their produce in the initial days of the crushing.
Services provided to the farmers
50% transportation subsidy on the seed distribution
Establishment of procurement centres for far off villages as their radius is large
Procurement of the late variety of produce as per the government rule
Fertilizer, crop health services at the procurement centres

19. Challenges faced in implementing SIS

The framework of SIS is provided by the government. However, not all sugar mills did implement all
the functionalities. From our primary and secondary survey, we discovered that most of the private
mills have implemented SIS and have streamlined their process. Few private mills have implemented
only the supply ticket messaging system. The cooperative mills, on the other side have not
implemented SIS at all.
The major challenge the mills initially faced was the mobile connectivity issues. Though all the farmers
possess a mobile phone. They still face network connectivity issues in the interior villages. The purpose
of implementing this system is to reduce the number of trips for the farmer. However, few farmers
take time to adapt themselves to the new system. They travel to the mills in spite of receiving the
message.

20. Comparison of Cost of production

Dalmia Mill is 50% more efficient in the Packaging of Sugar

Price realization of By-Products Molasses and bagasse by Dalmia Mill is 6.54%, 68.77% higher
than the Cooperative Mill
Cooperative Mill spends about 2 times more on Power, 8 times more on Fuel for operations
Salary and wages given to the employees at the Cooperative Mill is at most 4 times greater
compare to that in the private mill (Dalmia). Private Mill leverages the contract labor force
while Cooperative mills are bound to have permanent employees who are paid off during off
season
Cooperative Mills are liable to pay 14.33 Lakhs for Government guarantee fee whereas the
private mills are free from these charges
Dalmia Mill are 1.5 times more efficient in the cost of production as compared to the
Cooperative Mill
Dalmias investment in the Cane development process stands out at 2.712 Cr whereas the
Cooperative Mill investment is just 2.07 Lakhs

The detailed cost comparison has been displayed in the Appendix.

21. Payments issue

The major problems faced by the sugarcane farmers is the delay of payments. The direct and indirect
taxes borne by the mills are high. Apart from this, government takes 34% of the molasses produced by
24

the mills. The private mills claim that this is one of the reasons that the industry is becoming weak.
Many of the farmers are still producing the plant varieties which are not acceptable in the market. The
mills are obligated to procure these varieties in the interest of the farmers. The mills are not able to
realize the cost of sugar production of these varieties. Many of the mills are cutting down their costs
by generating the electricity that is required by the plant. Government takes into consideration only
the cost of production which is around INR 54 for the cooperative mills and INR 34 for the private
mills. Hence, the prices are set considering these costs. The detailed cost analysis is attached to the
end of the report. The cooperative mills are established more than 50 years back and the machinery is
not properly updated. This is resulting in the increase in cost and decrease in the sugar quantity
production. Hence, the cooperative mills are not able to cover up their losses. The lack of
synchronization between the sugarcane and sugar prices is also creating issues for the mills.
An interesting aspect that was discovered during our research was that the excess in production of the
sugarcane is also creating issues in the market. The mills are obligated to procure and operate for
more duration. After the stipulated time, the sugar content decreases. However, mills are obligated to
pay the same price for the cane procured during this time as well.
All these issues are the major reasons for the delay in payment to the farmers. The delay varies from 3
months to 1 year as well. Farmers are taking loans from banks for their survival as they are not being
paid on time. This is further adding up to their problems. Keeping in view of the farmers problems,
Supreme Court passed a judgment to pay the dues immediately to the farmers. In case of delay in
payments exceeding 14 days, the mills are penalized with 15% interest.

22. Other problems explored

Out of the three mills visited, only the cooperative mill has established purchase centers. From the
secondary research, we discovered the fact that rebate is made by the Central government from the
minimum price or a price agreed upon. The rebate is made for transport to both khandsaris and sugar
mills. Many of the farmers expressed their concern regarding the poor road connectivity to the sugar
mills. During our visit, we found that the roads were half broken and it would be difficult for bullock
carts to travel on that road, making it a serious problem to ponder upon.
All the farmers who were surveyed use flood irrigation method. This suggests that drip irrigation
method is not rampant in UP. The same concern was raised by Prof. Amit Agrahari during our
secondary research. The soil nutrients are being washed away as a result of this. From our primary
research, we found out that the farmers feel drip has to be used only if there is water scarcity. Sugar
mills have been giving advisory services regarding the cultivation, but not regarding the irrigation types
and their benefits. Tamil Nadu Chief Minister, Ms. Jayalalitha recently announced incentives to the
sugarcane farmers who use drip irrigation method. This step was taken in order to create awareness
amongst the farmers. Similar steps have to be taken in UP as well considering the misconception of
the farmers. This would not only preserve the soil nutrients, but also make the cultivation sustainable
for future by water conservation.

25

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

Bakshiram)

Problems
For past 3 years the price rise in FRP was on an average Rs. 34 per quintal of sugarcane
Productivity is very low due to rejected varieties of sugarcane being cultivated which
constitutes about 17% of the total sugarcane production in the state
Average yield of sugarcane in Uttar Pradesh is 60 tonnes per hectare whereas the average yield
in Maharashtra is at 80 tonnes per hectare
In the last two years the area under sugarcane cultivation has reduced by approximately 8 to 9
percent
Current payment due to the farmers stand soaring high at INR 60 billion
Cost of sugarcane cultivation, sugar production cost also rises marginally leading to a shift
demand patterns for UP sugar as the cost is lower at Maharastra, Tamil Nadu
Does not support the cane development process

Recommendations
Govt. should invest more on R&D to develop a sugarcane variety which suits the agro climatic
conditions of Uttar Pradesh
Eliminate the rejected varieties of sugarcane and promote high yielding varieties
Intercropping of crops which have stable prices in the market irrespective of demand supply
fluctuations

23. Data Analysis and Results

Ways of marketing Sugarcane in UP
In Shahjahanpur, most of the farmers sell their produce to the Sugar mills. The cooperative mills are
forced to take all the produce from the farmers. But in Nigohi and Roza, when the farmers do not get
supply tickets due to less produce, they sell it to the khandsaris/Kohlus. There are very few Jaggery
units in Shahjahanpur. West UP has more khandsari units that East.

Ways of marketing sugarcane

150
100

119

50

12

Khandsari/
Kohlu

Local Market

Others

0
Sugar Mills

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

26

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

Factors that influence the means of selling

Discriminant analysis is performed to identify the most important variables that influence farmers in
determining the means of selling.
Tests of Equality of Group Means
Wilks' Lambda

df1

df2

Sig.

Size

.965

.531

29

.086

Education

.985

.216

29

.807

Experience

.987

.189

29

.829

Loan

.966

.515

29

.603

The table shows that none of the factors except farm size are significant. Some farmers who have a
very small portion of their land under sugarcane cultivation tend to sell their produce to the khandsaris
and for other parties or big farmers. Some very large scale farmers who have more than 100 acres also
set up their own khandsari units to produce Jaggery from some of their produce. But they sell
maximum percentage of their produce to the sugar mills only.
Pooled Within-Groups Matrices
Size
Size

Education

Experience

Loan

1.000

.454

.816

-.597

Education

.454

1.000

.487

-.232

Experience

.816

.487

1.000

-.306

-.597

-.232

-.306

1.000

Correlation
Loan

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

Results

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

27

Average yield per cultivation cycle

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

Awareness of SIS
All the farmers in Nigohi and Rosa are aware of SIS. Tilhar mill has not implemented SIS and hence the
farmers do not know about SIS. Awareness is dependent on the mills that the farmers are registered
with.
Farmers in Nigohi access SIS through Mobiles mostly. Nigohi also has a toll free number for IVRS access.
Some farmers also access through the website.

SIS Access for Nigohi

100
50
0
Mobile

IVRS

Website

Do not use
SIS

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

SIS Information for Nigohi

100
80
60
40
20
0
Supply tickets

Queries

Advisory
Services

Payment Info

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

Farmers perception of SIS Comparison across mills

Descriptive Statistics results show the average level of satisfaction of various features of SIS.
Descriptive Statistics
Mean
Info

Std. Deviation

3.83

.874

28

Analysis N
30

Tcost

4.30

.915

30

Query

2.97

.890

30

Accuracy

4.07

.944

30

Security

4.23

.817

30

Area

2.37

1.189

30

Advisory

4.00

.743

30

Productivity

3.60

.675

30

Profitability

3.23

1.135

30

Results
The farmers are well satisfied with the information availability parameter. They mentioned that
the fact of getting information at their convenience is saving their time and reducing their
tension quotient.
Advisory services have been handled effectively by the mills but farmers do not use the query
service much.
The information that was provided to the farmers turned out to be accurate and the farmers
are happy about the same. The security and privacy of information of farmers have been well
handled by the system. The farmers feel that their information is being maintained with
security.
Farmers travel to mills for two reasons. One to seek information and the other to harvest their
produce. The number of trips for harvesting produce depends on their yield. However, due to
the messaging services provided by SIS regarding the traffic, waiting time has been reduced for
the farmers. On the other hand, in spite of receiving messages regarding supply ticket, few
farmers travel to mill for hard copy. It would take time for them to adapt to this method.
The major problem faced by the farmers is the payments delay issue. This has a major impact
on their confidence to increase the area under cultivation. In spite of SIS and mills support, this
confidence level is not high. Due to the time being saved and appropriate messages, farmers
perceive that their production & profitability has been positively impacted by SIS.

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

Factor 1 Accuracy, Security

Factor 2 Query, Advisory, Productivity
Factor 3 Profitability, Transportation cost
Rotated Component Matrixa
Component
1

Info

.293

-.430

-.558

.126

Tcost

.265

.407

.810

.146

Query

.420

.749

-.170

-.346

Accuracy

.829

.005

.209

-.019

Security

.790

.110

-.130

.241

Area

.045

-.102

.072

-.661

Advisory

.276

-.707

.104

-.297

-.435

.791

.092

.157

Productivity

29

Profitability

.014

.089

-.876

.033

Both the mills have a higher rating on Factor 1 showing that the information sent by the system is
accurate and secure. The system as such does not have any loopholes. Nigohi Mill has a higher rating
on Factor 2 whereas Roza has a very low rating. Relationship management with the farmers is high in
Nigohi. The mill provides information about irrigation techniques, fertilizer and pesticide techniques.
Farmers registered with both the mills have the perception that SIS has reduced their transportation
cost significantly and hence they are more profitable.
Results

Nigohi Dalmia Mills

Advisory services are highly satisfactory.
Information security and accuracy is also
very high. Bank account numbers of the
farmers have been encoded for display
and only the farmer can login to his
account using his unique ID and
password to see the information

Roza Birla Group

Farmers only get information about
supply tickets and advisory and
query features have not been
implemented.
Farmers perceive advisory services
to have huge impact on the
productivity

Impact of SIS
From our research, we discovered that implementation of SIS had no role in the realization of prices as
the prices were set by the government. Hence, that hypothesis has been nullified.
a. SIS has reduced the number of trips to the sugar mills >=75%.
Paired t test has been used for testing the hypotheses on impact. Before implementing SIS, the supply
tickets were distributed manually. This would obviously not be an effective way of distribution and
delays would creep in. Farmers travelled to the mills in case of delay or loss of the supply tickets on the
way. This increased the number of trips to the mills for the farmers. However, post SIS, the farmer
rarely travelled for supply tickets as the message was being sent on time by the mills. The difference in
the mean values shows the impact of SIS on the number of trips. The t-value = 23.688 >> 2.3
(significance 95%). This implies that the test significance is high and can conclude that SIS has reduced
the number of trips to the sugar mills >=75%.
Paired Samples Statistics
Mean
Pair 1

before
after

Std. Deviation

Std. Error Mean

4.4125

88

1.00245

.11208

.8875

88

.79546

.08893

Paired Samples Test

Paired Differences

Mean

Std.

Std. Error

Deviation

Mean

95% Confidence Interval of the Difference

Lower

30

Upper

df

Sig. (2-tailed)

Paired Samples Test

Paired Differences

Mean

Std.

Std. Error

Deviation

Mean

95% Confidence Interval of the Difference

Lower

Upper

df

Sig. (2-tailed)

Pair 1 befo
re -

3.52500

1.33098

.14881

3.22880

3.82120

23.688

87

.000

after

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

One feature of SIS was verifying the land size using GPS system. The scope of wrong issuance of supply
tickets has reduced after this system as many intermediaries used to pop in during the land survey
before SIS. It cannot be concluded that SIS led to increase in the issue of supply tickets. Rather it can be
concluded that it led to the correct issue of supply tickets. We could not apply statistical tools for this
hypothesis as SIS is implemented at the mills end and we surveyed only 3 sugar mills. The above
conclusion has been substantiated by the response from sugar mills.
c. Paired t-test for productivity:
Paired Samples Statistics
Mean
Pair 1

Std. Deviation

Std. Error Mean

before

3.6000

88

.49299

.05512

after

4.4750

88

.50253

.05618

Paired Samples Test

Paired Differences
95% Confidence Interval of the
Std.
Mean Deviation
Pair 1 before

- after .87500

.68205

Difference

Std. Error
Mean

Lower

.07626

Sig. (2-

Upper

-1.02678

-.72322

df

-11.475

tailed)
87

.000

The negative t-value implies that the sample mean of ratings before the implementation is less than
the mean of ratings after the implementation. This implies that the perception of the farmers is
positive that the productivity has been effected by SIS. The p-value is low, hence it can be concluded
that the significance is high.
d. Paired t-test for Profitability
Paired Samples Statistics
Mean
Pair 1

Std. Deviation

Std. Error Mean

before

2.9375

88

.75211

.08409

after

4.5000

88

.50315

.05625

31

Paired Samples Test

Paired Differences
95% Confidence Interval of
the Difference

Std. Error
Mean
Pair 1

before - after

Std. Deviation

-1.56250

Mean

.88366

Lower

.09880

Upper

-1.75915

-1.36585

df

-15.815

Sig. (2-tailed)
87

.000

Results
SIS has created a major impact on farmers perception
The implementation of SIS has not been 100% in spite of the mandatory rule. The success of SIS
mostly depends on the features that are used to streamline the process.

Demographics

Age

Household Size

50

100

40

80

30

60

20

40

10

20

0
<25

26-40

41-60

>61

<6

6-10

>10

Most farmers live as a joint family and hence the average house hold size is around 6 to 10. Most of the
farmers were middle aged around 26-60.

24. Conclusion
The major issue with the farmers is delay of payments which in turn reduces the confidence to
cultivate Sugarcane. SIS has brought about significant impact in the procurement process by reducing
the information gap between the farmers and the Sugar mills. But the implementation of SIS totally
depends on the mills and hence the profitability, development and status of the farmers totally
depends on the mills that they supply to.
Establishing procurement centers at the major villages would reduce the traffic and waiting time for
the farmers in villages near the mills. As many farmers informed that they are facing problems
transporting the produce due to the poor road connectivity. Apart from this, the government and the
sugar mills must come on to a common platform to educate the sugarcane farmers regarding the
benefits of drip irrigation.

32

25. References
1. http://www.indiansugar.com/
2. Paper on Economics of Farming Systems in Uttar Pradesh by S.P. Singh*, B. Gangwar

andM.P. Singh
3. Sugarcane Information System Case study by Governance Knowledge Centre
4. http://www.upcane.org/sis/en/index.asp
5. http://www.kisaan.net/

26. Appendix
SI.No Particulars

A
1

Cane Cost
Cane Cost

Purchase tax

Cane Commission

Cane Marketing

5
6
7

B
1
2
3
4

Cane
Development
Transportation &
Loading Exp.
Cane Outcentre
exp.
TOTAL (A)
Other Expenses
Manufacturing
exp.
Chemicals

Diesel (Inc Off

Season Power)
Deisel Generator
Set Repairing
Bagasse Handling

Variation

23,129.59

273.82

2,913.07

7,417.90

273.98

3,616.42

(703.35)

169.56

2.01

21.36

13.87

0.51

6.76

14.60

425.67

5.04

53.61

34.41

1.27

16.77

36.84

7.62

0.09

0.96

7.94

0.29

3.87

(2.91)

271.20

3.21

34.16

2.07

0.08

1.01

33.15

635.26

7.52

80.01

134.49

4.97

65.57

14.44

58.39

0.69

7.35

8.40

0.31

4.10

3.25

24,697.29 292.38

3,110.52

7,619.08

281.41

3,714.50

(603.98)

211.07

2.50

26.58

53.37

1.97

26.02

0.56

375.52

4.45

47.30

144.08

5.32

70.24

(22.94)

83.36

0.99

10.50

7.85

0.29

3.83

6.67

103.79

1.23

13.07

78.29

2.89

38.17

(25.10)

29.77

0.35

3.75

68.25

2.52

33.27

(29.52)

3.03

0.11

1.48

(1.48)

Sugar Handling
Power & Fuel

COOPERATIVE MILL (TILHAR)

Amount
Per Qtl Per Qtl
Rs. Lacs
on Cane on
Sugar

Packaging Cost

PRIVATE MILL (NIGOHI)

Amount
Per Qtl Per Qtl
Rs. Lacs
on Cane on
Sugar

56.48

0.67

7.11

5.09

0.19

2.48

4.63

17.53

0.21

2.21
33

1.92

0.07

0.94

1.27

Ash Handling

D
E

Salary & Wages

Medical Expenses

Security

Repair &
Maintenance - P &
M
Repair &
Maintenance Building
Subscription to
Federation &
Other
Govt. Guarantee
fees
Insurance

Travel

Vehicle expense

Advertisement

P
Q
R
S
T

U
V
W
X
Y

11.25

119.70

1,135.97

41.96

553.82

(434.12)

69.41

0.82

8.74

4.41

0.16

2.15

6.59

7.16

0.08

0.90

18.78

0.69

9.16

(8.26)

48.09

0.57

6.06

7.71

0.28

3.76

2.30

372.71

4.41

46.94

217.73

8.04

106.15

(59.21)

49.57

0.59

6.24

27.43

1.01

13.37

(7.13)

9.55

0.11

1.20

79.00

2.92

38.51

(37.31)

29.40

1.09

14.33

(14.33)

9.02

0.11

1.14

10.47

0.39

5.10

(3.96)

11.71

0.14

1.48

4.21

0.16

2.05

(0.57)

57.63

0.68

7.26

6.12

0.23

2.98

4.28

0.03

0.37

6.06

0.22

2.95

(2.58)

0.13

1.42

4.21

0.16

2.05

(0.63)

1.67

17.72

13.50

0.50

6.58

11.14

8.69

92.41

29.70

1.10

14.48

77.93

38.45

409.02

1,878.29

69.37

915.72

(506.70)

330.82

3,519.53

9,497.36

350.79

4,630.22

(1,110.69)

17.41

185.22

356.60

13.17

173.85

11.37

5.60

59.61

72.44

2.68

35.32

24.29

0.12

1.28

7.76

0.29

3.78

(2.50)

23.13

246.11

436.80

16.13

212.95

33.16

307.69

3,273.42

9,060.56

334.66

4,417.27

(1,143.85)

10.60

0.13

1.33

1.63

0.06

0.79

0.54

27.56

0.33

3.47

10.42

0.38

5.08

(1.61)

Staff Welfare

950.38

2.93
Rent, Rates &
Taxes
11.30
Other
Administrative exp. 140.66
Depreciation
733.72
TOTAL (B to R)
3,247.56
TOTAL (A + S)
27,944.84
Less: Realisation of By-Products
Molasses
1,470.65
Bagasse
473.29
Pressmud
10.13
TOTAL (U to W)
1,954.08
GRAND TOTAL (TX)
25,990.76
ADD: Interest & Other expenses

Sugar Loading

Commission on
Sugar Sale

34

3
4
5

Interest - Working
Capital
Interest - Term
Loan
Total of (1 to 4)

944.70

11.18

118.98

297.52

10.99

145.05

(26.07)

683.32

8.09

86.06

1,586.16

58.59

773.30

(687.24)

1,666.18

19.73

209.84

1,895.73

70.02

924.22

(714.38)

27,656.94

327.42

3,483.26

10,956.29 404.68

5,341.49

(1,858.23)

NET TOTAL (Y+5)

Net total of Per
Qtl sugar of Nigohi
mill over Tilhar mill

1.53

35