CHAPTER III LABOUR WELFARE MEASURES OF THE...
Transcript of CHAPTER III LABOUR WELFARE MEASURES OF THE...
CHAPTER III
LABOUR WELFARE MEASURES OF THE SUGAR MILLS
3.1. Introduction
Agriculture is the oldest and prime source of earnings in the world
from time immemorial. Indian economy is basically an agrarian economy
with an overflowing population. Nearly 70 per cent of the working
population of this country is dependent on agriculture and a very significant
portion of national income comes from this sector. Thus, agriculture has
been the main source of earning of vast masses as well as the mainstay of
the Indian economy. Geographically, the Indian subcontinent entirely lies to
the south of equator and hence the climatic conditions are suitable for
sugarcane cultivation in nearly all parts of the country. The climatic
conditions of the tropical belt are however more favourable to the sugarcane
cultivation. The states lying south of the Narmada River i.e. Maharashtra,
Andra Pradesh, Karnataka and Tamil Nadu constitute the best-suited area
for sugarcane growing. The number of growers of this crop is about
4 million. Twenty million people in this country derive their livelihood
from sugarcane cultivation. In the cropping pattern of the country,
sugarcane occupies an area 1.5 per cent to 2 per cent of the cultivable area.
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3.2. Role of Sugar Mills in Socio-Economic Development
Sugar industry is the second major industry that accounts for nearly 8
per cent of industrial investment and provides employment for about 7.4 per
cent of the industrial working force. It is the foremost agro-based rural
industry providing direct employment to 4 lakh people. Besides about 35
lakh people are indirectly connected with this industry. A sugar mill of
1250 tonnes crushing capacity per day creates an employment potentiality
of around 300 to 350 permanent workers and equal number of seasonal
workers. Besides this, for harvesting sugarcane, 5000 male and female
workers are required to be engaged during the crushing season. Likewise
around 100 tractors and 1000 bullock carts are given employment during
the crushing season.1
There is no exaggeration in the claim that the sugar mills in India
represent one of the most significant developments since Independence. The
sugar mills have brought about significant socio-economic development in
their command areas. They have not only modernized agriculture but have
also played a key role in transforming the traditional, indebted, idle and lazy
farmers into a dynamic, relatively better off, hard-working and efficient
agriculturalists. It attempted to imbibe self-confidence in the minds of the
1 Kharche, R (1989). Sugar Co-operatives in Developing Economy, Aurangabad: Parimal Prakashan, pp.25-26.
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farmers, which is very important in building up new industrial and business
leadership from all rural masses.
Where the sugar mills have been working successfully, they have
rendered considerable socio-economic services to the rural community.
They have opened schools, colleges, hospitals, etc. and provided numerous
other facilities to the farmers in general. These activities and services are
more evident in Maharashtra and Gujarat.2 The sugar mills have brought
about a far reaching social, economic and political transformation in the
rural areas by providing various facilities like modernization of agriculture,
extension of the irrigation, employment, infrastructural facilities, education,
health and recreation facilities, changing cropping pattern, and have
promoted dairy and poultry activities. Thus, the sugar mills have acted as
catalyst for the socio-economic development and these activities lead to
betterment of the economic conditions, not only of the farmers, but also of
landless labourers and other people in the areas.3
2 Report of the All India Conference of Co-operative Sugar Factories, Organized by National Co-operative Development Corporation, New Delhi, p.24. 3 Andhale, G.B (1972). Study of Impact of Co-operative Sugar Factory on the Lives of Farmers with Special Reference to Sangamer Bhag Sahakari Sakhar Carkhana, Unpublished Ph.D. Thesis Submitted to Mahatma Phule Krishi Vidyapeet, Rahuri.
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3.3. Growth and Progress of Sugar Industry in India
The sugar industry plays a leading role in global sugar market being
the world's second largest producer after Brazil, producing nearly 15 to 25
per cent of global sugar and sugarcane, respectively. In addition to
traditional white sugar about 6-8 MT alternative sweeteners are also
produced in the decentralized sectors. During the beginning of 20th century,
the Indian farmers woke up to the loss suffered by them and therefore,
started devising ways and means to avoid exploitation by middlemen. The
incentive to the farmer to produce more is the fair return to him of the
produce. The processing of agricultural produce adds value to the produce
and increases the possibility of fair return of the produce to the farmers.
Efforts to manufacture sugar from sugarcane on commercial lines were
made only at the beginning of the twentieth century and the industry
flourished in India during this century only. The private sugar mills
established as a joint stock companies exploited the cane growers in the
region by taking their lands on lease basis for a long period on a nominal
rent and by paying meager price for their sugarcane. Mostly the cane
growers utilized their cane for the production of jaggary in the early period,
but instability in the price of the jaggary compelled the farmers to sell their
sugarcane to private sugar mills. The situation created by these private
sugar mills paved way for establishment of the sugar factory in the co-
operative sector. The Indian farmers felt that certain functions performed by
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the middlemen could jointly be performed by them and this gave the birth
to processing of agricultural produce on co-operative basis. The dawn of
independence in 1947 brought its wake a change in the outlook and policy
of the nation. One of the ways for achieving this objective is to encourage
peasants to organize and manage processing industry, based on the crops
produced by them.4
The first co-operative sugar mill was established in 1920 at
Malegaon in Baramathi Taluk of Pune District. It survived hardly only for
two years. In the beginning four co-operative sugar mills came up, namely,
Biswan in Uttar Pradesh and Thumapala, Etikoppaka and Vuyyuru in the
Madras Presidency. For want of organizational, managerial and financial
support, three out of these four co-operative sugar mills except Etikoppaka
co-operative mill were sold off to private enterprise. Good leadership,
strong backing of co-operative banks, gradual and cautious expansions,
good relations with membership and payment of higher cane price however
saved Etikoppaka factory. In 1919-20 the number of sugar mills was 19, but
began to increase slowly. In 2009-10, there were 490 sugar mills in India.
The States of Uttar Pradesh, Maharashtra and Tamil Nadu occupy the first,
second and third places respectively in having more number of sugar mills.
4 Jain, A.P (1956). Foreword to Growers own Co-operative Sugar Factories, New Delhi: Ministry of Food and Agriculture, Government of India.
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Sugarcane is the main source from which sugar is produced in India.
Sugarcane areas in India are broadly divided into two distinct belts,
subtropical and tropical. The subtropical belt comprises the States of Uttar
Pradesh, Bihar, Punjab, West Bengal, Assam, Rajasthan, Madhya Pradesh
and Orissa. The tropical belt covers the States of Maharashtra, Gujarat,
Andhra Pradesh, Tamil Nadu, Karnataka and Kerala. The two belts are
characterized by the marked difference in climate and agricultural
conditions, more than three-fourth of the area under sugarcane in the
country has long been in the subtropical belt.
3.3.1. Area under Cultivation, Production and Yield of Sugarcane in
India
Area under cultivation, production and yield of sugarcane in India
for a period of 10 years from 2000-01 to 2009-10 are shown in Table 3.1.
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TABLE 3.1
Area under Cultivation, Production and Yield of Sugarcane in India
Year Area Under Sugarcane
(‘000 hectare)
Production of Sugar Cane (‘000 tonnes)
Yield of Sugarcane (tonnes per
hectare)
2000-01 4316 295.956 68.60
2001-02 4430 298.422 67.40
2002-03 4361 281.575 64.60
2003-04 3938 233.862 59.40
2004-05 3662 237.088 64.80
2005-06 4201 281.172 66.90
2006-07 5151 355.520 69.00
2007-08 5055 348.188 68.90
2008-09 4414 285.029 64.60
2009-10 4202 277.750 66.10
Average 4373 289.456 66.03 Source: Co-operative Sugar, Vol.42, No.4, December, 2010.
The area under sugarcane production in India shows a progressive
increase from 4316 thousand hectares in 2000-01 to 5151 hectares in 2006-
07 and 4202 hectares in 2009-10. The average area under sugarcane
production for the period from 2000-01 to 2009-10 was 4373 hectares. The
production of sugarcane in the country was 295.956 thousand tonnes in the
year 2000-01 and 277.750 thousand tonnes in the year 2009-10. The highest
production of sugarcane was registered in the year 2006-07 with 355.520
thousand tonnes. However, the yield of sugarcane per hectare showed a
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decline trend from 68.60 tonnes in 2000-01 to 66.90 tonnes in 2005-06. The
yield of sugarcane for the year 2009-10 was 66.10 tonnes per hectare. The
average yield of sugarcane for the period from 2000-01 to 2009-10 was
66.03 tonnes per hectare.
3.3.2. No. of Sugar Mills in Operation in India
Table 3.2 shows the number of sugar mills in operation in India for a
period of 10 years from 2000-01 to 2009-10.
TABLE 3.2
No. of Sugar Mills in Operation in India
Year No. of Mills in Operation
Average Duration
(Days)
Average Capacity (Tonnes
Per Day)
2000-01 436 138 3203
2001-02 434 138 3285
2002-03 453 140 3343
2003-04 422 99 3493
2004-05 400 97 3508
2005-06 455 125 3619
2006-07 504 173 3561
2007-08 516 149 3586
2008-09 489 87 3751
2009-10 490 109 3846
Average 460 126 3519
Source: Co-operative Sugar, Vol.42, No.4, December, 2010.
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The above table shows the number of mills in operation, average
duration and average capacity of the sugar mills in India. The number of
sugar mills in operation in India has shown a progressive increase from 436
in 2000-01 to 455 in 2005-06 and 490 in 2009-10. The average duration
declined from 138 days in 2000-01 to 125 days in 2005-06 and to 109 days
in 2009-10. At the same time, the average capacity of the sugar mills
showed a progressive increase from 3203 tonnes in 2000-01 to 3619 tonnes
in 2005-06 and 3846 tonnes in 2009-10. The average capacity of the mills
for the period of 10 years from 2000-01 to 2009-10 was 3519 tonnes.
3.3.3. Production of Sugar and Molasses in India
Production of sugar and molasses in India for a period of 10 years
from 2000-01 to 2009-10 is shown in Table 3.3.
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TABLE 3.3
Production of Sugar and Molasses in India
Sugar Year Production
(in Million tonnes) Recovery (% Cane)
Molasses (‘000 tonnes)
2000-01 18.511 10.48 7820
2001-02 18.528 10.27 8073
2002-03 20.145 10.36 8879
2003-04 13.546 10.22 5905
2004-05 12.690 10.17 5513
2005-06 19.267 10.21 8549
2006-07 28.328 10.16 13111
2007-08 26.357 10.55 11313
2008-09 14.539 10.03 6546
2009-10 18.912 10.19 8400
Average 19.082 10.26 8411
Source: Co-operative Sugar, Vol.42, No.4, December, 2010.
The production of sugar shows a progressive increase from 18.511
million tonnes in 2000-01 to 19.267 million tonnes in 2005-06, and
declined to 18.912 million tonnes in 2009-10. The average sugar production
for the period from 2000-01 to 2009-10 was 19.082 million tonnes. There
was an erratic change in the recovery of sugar during the period from 2000-
01 to 2009-10. The highest recovery (10.55%) was registered in the year
2007-08 and the least recovery (10.03%) was registered in the year 2008-
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09. The production of molasses showed an erratic change during the period
from 2000-01 to 2009-10. The production of molasses was 7820 thousand
tonnes in 2000-01, 8549 thousand tonnes in 2005-06 and 8400 thousand
tonnes in 2009-10.
3.3.4. Consumption, Import and Export of Sugar in India
Table 3.4 indicates consumption, import and export of sugar in India
for a period of 10 years from 2000-01 to 2009-10.
TABLE 3.4 Consumption, Import and Export of Sugar in India
Year Consumption (Lakh Tonnes)
Export ('000 Metric Tonnes)
Import ('000 Metric Tonnes)
2000-01 162.00 338.691 30.404
2001-02 167.81 1456.448 26.578
2002-03 183.84 1662.370 41.430
2003-04 172.85 1200.600 74.400
2004-05 185.00 108.587 933.000
2005-06 189.45 316.850 558.770
2006-07 201.60 1643.403 1.052
2007-08 220.00 4684.554 0.494
2008-09 230.00 3331.997 386.099
2009-10 210.00 44.045 2424.045
Average 192.25 1478.75 447.627 Source: Cooperative Sugar, Vol.42, No.4, December, 2010.
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It is inferred from the above table that the consumption of sugar
showed an erratic change over the period of 10 years. The consumption of
sugar was 162.00 lakh tonnes in 2000-01 and 189.45 lakh tonnes in 2005-06
and 210.00 lakh tonnes in 2009-10. The average consumption of sugar for
the period from 2000-01 to 2009-10 was 192.25 lakh tonnes. The export of
sugar also shows an erratic change over the period of 10 years. The highest
value of export (4684.554 thousand metric tonnes) was registered in the
year 2007-08 and the least (44.045 thousand metric tonnes) was registered
in the year 2009-10. The average export of sugar for the period of 10 years
was 1478.755 thousand metric tonnes. Likewise, the import of sugar also
shows an erratic change. The import of sugar was 30.404 thousand metric
tonnes in the year 2000-01, 558.770 thousand metric tonnes in the year
2005-06 and 2424.045 thousand metric tonnes in the year 2009-10. The
average import of sugar for the period of 10 years was 447.627 thousand
metric tonnes.
3.4. Sugar Industry in Tamil Nadu
The agro based sugar mills play an important role in the economic
growth of rural areas with the sole aim to generate large scale direct
employment. Apart from that, a lot of indirect employment to rural
population is also provided. Tamil Nadu sugar industry is responsible for
about 10% of the total sugar production in India. The sugar industry faced a
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boom in the 1980s, but the crisis era started from 1990, all after the
economic liberalization. With the surge in the procurement price of
sugarcane, surplus production and reduction in the open market sugar price,
directed the industry and the sugar factories, thereafter to have a glut of
stocks. In Tamil Nadu the soil is suitable for growing sugarcane and it has a
unique feature of sub-soil drainage, which is helpful to sugarcane
cultivation. The favourable climatic conditions coupled with adoption of
modern methods of cultivation by farmers, hard work by them and
development efforts by the sugar mills resulted in faster growth of sugar
industry in Tamil Nadu. Sugar industry provides direct employment to 0.50
lakh people and about 25 lakh people are indirectly connected with this
industry in Tamil Nadu.
3.4.1. Area under Cultivation, Production and Yield of Sugarcane in Tamil Nadu
Table 3.5 shows area under cultivation, production and yield of
sugarcane in Tamil Nadu for a period of 10 years from 2000-01 to 2009-10.
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TABLE 3.5
Area under Cultivation, Production and Yield of Sugarcane in Tamil Nadu
Year Area under Sugarcane
(in ‘000 Hectare)
Production of Sugarcane
(in ‘000 tonnes)
Yield of Sugarcane (Tonnes per
Hectare)
2000-01 315 33188 105.30
2001-02 321 32620 101.60
2002-03 284 30282 106.80
2003-04 192 17656 091.90
2004-05 232 23396 100.80
2005-06 336 35107 104.70
2006-07 391 41124 105.10
2007-08 354 38071 107.50
2008-09 309 32804 106.20
2009-10 314 31807 101.20
Average 305 31605 103.10 Source: Cooperative Sugar, Vol.42, No.4, December, 2010.
The area under sugarcane production was 315 thousand hectare in
2000-01, 232 thousand hectare in 2004-05 and 314 thousand hectare in
2009-10. The average area under sugarcane production for the period from
2000-01 to 2009-10 was 305 thousand hectare. The production of sugarcane
was subject to an erratic change over the period of 10 years. The highest
production of sugarcane (41124 thousand tonnes) was in the year 2006-07
and the least (17656 thousand tonnes) was in the year 2003-04. The average
sugarcane production was 31605 thousand tonnes. The yield of sugarcane
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per hectare showed an erratic change. The yield of sugarcane was 105.30
tonnes in 2000-01, 104.70 tonnes in 2005-06 and 101.20 tonnes in 2009-10.
The average yield of sugarcane was 103.10 tonnes per hectare.
3.4.2. No. of Sugar Mills in Operation, Production of Sugar and Molasses in Tamil Nadu
The number of sugar mills in operation, production of sugar and
molasses in Tamil Nadu for a period of 10 years from 2000-01 to 2009-10
are presented in Table 3.6.
TABLE 3.6
No. of Sugar Mills in Operation, Production of Sugar and
Molasses in Tamil Nadu
Sugar Year
No. of Sugar Mills in
Operation Production (in ‘000 tonnes)
Recovery (% Cane)
Molasses(‘000
tonnes)
2000-01 37 1781 9.64 12.65
2001-02 36 1839 9.61 20.37
2002-03 35 1644 9.88 16.79
2003-04 34 921 9.92 16.02
2004-05 34 1108 9.64 26.86
2005-06 35 2142 9.24 18.16
2006-07 37 2540 9.25 13.63
2007-08 37 2141 9.32 27.21
2008-09 37 1595 9.62 66.63
2009-10 39 1270 8.88 53.99
Average 36 1698 9.50 27.23 Source: Records of the Tamil Nadu Co-operative Sugar Federation
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The number of sugar mills in operation in Tamil Nadu showed a
progressive increase from 37 in 2000-01 to 39 in 2009-10. The production
of sugar in Tamil Nadu shows an erratic change. The sugar production was
1781 thousand tonnes in 2000-01, 2142 thousand tonnes in 2005-06 and
1270 thousand tonnes in 2009-10. The average sugar production for the
period from 2000-01 to 2009-10 was 1698 thousand tonnes. There was an
erratic change in the recovery of sugar during the period from 2000-01 to
2009-10. The highest recovery (9.88%) was registered in the year 2002-03
and the least recovery (8.88%) was registered in the year 2009-10. The
production of molasses showed an erratic change over the years. The
production of molasses was 12.65 thousand tonnes in 2000-01 and 18.16
thousand tonnes in 2005-06 and 53.99 thousand tonnes in 2009-10.
3.5. Profile of the Select Sugar Mills
A brief description of the select sugar mills is given below.
TABLE 3.7
Year of Commissioning and Capacity of the Select Sugar Mills
Name of the Mill Year of Commissioning
Plant Capacity
(Tone Capacity Day)
Chengalrayan Co-operative Sugar Mills 1978 3000
Prembalur Sugar Mills Limited 1977 3000
Sakthi Sugars Limited 1964 9000
Source: Extracted from the Records of the Mills
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The year of commissioning and capacity of the select sugar mills are
given in Table 3.7. The Chengalrayan Co-operative Sugar Mills was
commissioned in the year 1978 with 3000 tonne crushing capacity per day.
Prembalur Sugar Mills Limited was established in the year 1964 with 3000
tonne crushing capacity per day. The Sakthi Sugars Limited was
commissioned in the year 1964 with 9000 tonne crushing capacity per day.
TABLE 3.8
Production of Sugar in the Select Sugar Mills (Quintals)
Year
Che
ngal
raya
n C
o-op
erat
ive
Suga
r M
ills
Pera
mba
lur
Suga
r M
ills
Lim
ited
Shak
thi
Suga
rs
Lim
ited
2000-01 890280 425376 2332780
2001-02 449100 426356 1933020
2002-03 464010 370236 1925050
2003-04 316966 134895 1245590
2004-05 384235 275005 2576170
2005-06 434410 439100 3477020
2006-07 707875 476660 3369960
2007-08 464420 291020 4006780
2008-09 361500 302040 4272880
2009-10 303650 195700 5369730
Average 477644 333638 3050890 Source: Extracted from the Records of the Mills
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The production of sugar in the select sugar mills is given in Table
3.8. The average production of sugar of the Chengalrayan Co-operative
Sugar Mills, Perambalur Sugar Mills Limited and Shakthi Sugars Limited
was 477644 quintals, 333638 quintals and 3050890 quintals respectively.
Over the period of 10 years, the highest production of sugar was (5369730
quintals) in the year 2009-10 in Shakthi Sugars Limited, and the least was
(134895 quintals) in the year 2003-04 in Perambalur Sugar Mills Limited.
TABLE 3.9
Sugarcane Crushed in the Selected Sugar Mills (‘000 tonnes)
Year
Che
ngal
raya
n C
o-op
erat
ive
Suga
r M
ills
Pera
mba
lur
Suga
r M
ills
Lim
ited
Shak
thi
Suga
rs
Lim
ited
2000-01 432380 464830 2316874
2001-02 481818 440362 1914453
2002-03 480574 351479 1472547
2003-04 311786 134327 499480
2004-05 389973 275711 847934
2005-06 518221 479202 2746916
2006-07 806984 558703 3477203
2007-08 526204 350771 4416309
2008-09 370497 332808 2045681
2009-10 350202 233059 2356303
Average 466864 362125 2209370 Source: Extracted from the Records of the Mills
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Sugarcane crushed in the select sugar mills is given in Table 3.9.
The average sugarcane crushed in the Chengalrayan Co-operative Sugar
Mills, Perambalur Sugar Mills Limited and Shakthi Sugars Limited was
466864 thousand tonnes, 362125 thousand tonnes and 2209370 thousand
tonnes respectively. For the period from 2000-01 to 2009-10, the highest
cane crushed was (4416309 thousand tonnes) in the year 2007-08 in
Shakthi Sugars Limited, and the least was (134327 thousand tonnes) in the
year 2003-04 in Perambalur Sugar Mills Limited.
TABLE 3.10
Recovery of Sugar in the Select Sugar Mills
Year
Che
ngal
raya
n
C
o-op
erat
ive
Suga
r M
ills
Pera
mba
lur
Suga
r M
ills
Lim
ited
Shak
thi
Suga
rs
Lim
ited
2000-01 8.91 10.01 10.04
2001-02 9.27 9.63 10.04
2002-03 9.67 10.10 9.80
2003-04 10.17 9.74 10.15
2004-05 9.85 10.10 9.30
2005-06 8.38 9.17 9.52
2006-07 9.78 8.54 9.56
2007-08 8.20 8.31 9.07
2008-09 7.60 9.05 9.22
2009-10 8.67 8.40 9.47
Average 9.05 9.30 9.61 Source: Extracted from the Records of the Mills
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The average recovery of sugar in the select sugar mills is given in
Table 3.10. The recovery of sugar in the Chengalrayan Co-operative Sugar
Mills, Perambalur Sugar Mills Limited and Shakthi Sugars Limited was
9.05%, 9.30% and 9.61%. The highest recovery was (10.17%) registered in
the year 2003-04 in Chengalrayan Co-operative Sugar Mills and the least
was (7.60%) registered in the year 2008-09 in Chengalrayan Co-operative
Sugar Mills.
TABLE 3.11
Production of Molasses in the Select Sugar Mills
(‘000 tonnes)
Year
Che
ngal
raya
n C
o-op
erat
ive
Suga
r M
ills
Pera
mba
lur
Suga
r M
ills
Lim
ited
Shak
thi
Suga
rs
Lim
ited
2000-01 20843 19247 52278
2001-02 20245 21225 55028
2002-03 21065 17082 37949
2003-04 13923 5642 23840
2004-05 16842 11607 67800
2005-06 22365 20989 96092
2006-07 36316 27321 98079
2007-08 25363 16732 81733
2008-09 16072 15542 160095
Average 21448 17265 74766 Source: Extracted from the Records of the Mills
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The production of molasses in the select sugar mills is given in
Table 3.11. The average production of molasses of the Chengalrayan
Co-operative Sugar Mills, Perambalur Sugar Mills Limited and Shakthi
Sugars Limited was 21448 thousand tonnes, 17265 thousand tonnes, and
74766 thousand tonnes respectively. For a period of 10 years, the highest
production of molasses was (160095 thousand tonnes) in the year 2008-09
in Shakthi Sugars Limited, and the least was (5642 thousand tonnes) in the
year 2003-04 in Perambalur Sugar Mills Limited.
TABLE 3.12
Net Profit of the Select Sugar Mills (Rs. in Lakhs)
Year
Che
ngal
raya
n C
o-op
erat
ive
Suga
r M
ills
Pera
mba
lur
Suga
r M
ills
Lim
ited
Shak
thi
Suga
rs
Lim
ited
2000-01 (733.22) (786.08) 323.97
2001-02 (122.55) (821.29) 482.51
2002-03 (1434.05) 1393.18 (5315.77)
2003-04 (52.90) (486.89) (4287.99)
2004-05 575.65 (525.75) 2814.45
2005-06 (828.37) (554.21) 9616.86
2006-07 (1145.53) (1713.85) 3017.97
2007-08 (3514.98) (3494.36) (8713.67)
2008-09 91.00 (1311.76) 12470.72
2009-10 (300.00) 400.00 (12794.37)
Average (746.49) (790.10) (238.53) Source: Extracted from the Records of the Mills
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The net profit and loss of the select sugar mills is given in Table
3.14. The average net profit and loss of the Chengalrayan Co-operative
Sugar Mills, Perambalur Sugar Mills Limited and Shakthi Sugars Limited
was Rs. (746.49) lakhs, Rs. (790.10) lakhs and Rs. (238.53) lakhs
respectively. It is inferred that the select sugar mills incurred average net
loss over the study period.
3.6. Human Resource Management
Human resource department is established in every organization
under the charge of an executive known as human resource manager. He is
first of all an executive requiring essentially the same executive qualities as
the other executives. Though he is a staff officer in relation to other
departments of the enterprise, he has a line authority to get orders executed
within his department. He performs managerial as well as operative
functions. Since he is a manager, he performs the basic functions of
management like planning, organizing, directing, coordinating, and
controlling. He also performs certain operative functions of recruitment,
selection, training, placement, etc. that the other line managers may entrust
to him.
In recent years, realizing the importance of human resource
management, many organizations have started streamlining their
organization structure by creating the human resource department for
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performing human resource functions. None of the sugar mills in Tamil Nadu
had separate human resource department. The Special Officer, who is the
immediate superior of the co-operative/government sugar mills and Labour
Welfare Officer in case of private sugar mill, performs human resource
functions such as recruitment, selection, training, fixation of pay, sanction of
increments, promotion, transfer, welfare facilities, maintenance of employee
records, employee grievances, deputation of employees to other organization
and performance appraisal, maintenance of employee discipline and places
amendment proposals to the special bylaws relating to the service conditions of
the employees.
3.7. Welfare Measures
The Labour Investigation Committee preferred to include under
labour welfare “any thing done for intellectual, physical, moral and
economic betterment of the workers, whether by employer, by government
or by other agencies, over and above what is laid down by law, or what is
normally expected on the part of the contracted benefits for which workers
may have bargained.” In India, some welfare measures are compulsory as
per labour laws. It should be noted that expenditure on labour welfare
measures is a profitable investment in the long run as it motivates the
workers for higher productivity. Though welfare services are merely
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maintenance factors, they are necessary for the health of the organization
since they bear close connection with the productivity of the employees.
The sugar mills are manufacturing organizations and they are
covered under Factories Act 1948. They are providing statutory welfare
measures such as washing facilities, facilities for storing, drying and
clothing, facilities for sitting, first aid appliances, canteens, rest room
facilities, establishment of crèches and appointment of welfare officers.
Non-statutory welfare measures relate to those activities, which are
undertaken voluntarily by employers over and above statutory welfare
measures. These may include housing facility, loans and advances,
educational facilities, recreation facilities, transport facilities, employees’
co-operative store and so on. A brief description of the welfare measures
provided by the select sugar mills to their employees are given below:
Sanitary and Hygiene Facilities
The maintenance of a clean, sanitary and hygiene work environment
is accepted as an important basic welfare amenity. These include toilets and
water for drinking and washing. The Factories Act requires that every
factory must be kept clean and free from effective flowing from any drain
or privy; that a sufficient supply of wholesome drinking water must be
made available at suitable and convenient points; that separate latrine and
urinals for male and female workers must be provided; that spittoons must
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be kept in convenient places in clean and hygienic conditions, and that
adequate, suitable, clean, conveniently accessible and separately screened
washing facilities must be provided for male and female workers. In the
select sugar mills, sufficient numbers of latrines and urinals with separate
accommodation for male and female employees are provided with sufficient
quantity of water over and above the statutory requirements. All latrines and
urinals are lighted, ventilated and maintained in a clean condition. Besides,
the employees are provided with drinking water facilities through pipeline
and sintex tank. These tanks are chlorinated periodically and in some places
drinking water is provided with cold and warm by mechanical means. Also
such points are clearly marked ‘drinking water’ in the regional language.
Canteen
In the select sugar mills, subsidized canteens as per the prescribed
standard have been provided to cater to the needs of all employees
including contract workmen. The canteen committee of the select sugar
mills takes necessary efforts in consultation with top management and
recognized trade unions to improve the standard of foodstuff from time to
time. Further, arrangements are also made to provide variety of foodstuff in
the canteen for the well being of the employees in the special events.
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Rest and Lunch Room Facilities
This amenity provides a prescribed number of seats on the shop floor
and rest rooms or shelters. This facility helps to reduce fatigue, as it enables
a worker to sit down occasionally without any break in his work and
contribute to his comfort and efficiency. The Factories Act provides that,
for the purpose of rest, suitable sitting arrangements have to be made and
maintained for all workers who are obliged to work standing in a factory
with more than 150 workers. Good ventilated rest shelters are provided in
the select sugar mills to the employees to take rest during rest time. This
rest shelters are white washed and maintained properly.
Medical Facilities
Health care for workers will help to reduce the incidence of sickness,
absenteeism among them and increase productivity. The importance of
industrial health care in general has also been emphasized by the
International Labour Organization. In 1931, the Royal Commission on
Labour and the Labour Investigation Committee, 1946 underlined the
necessity for providing basic health and welfare amenities. The importance
of industrial health service is greater in India than elsewhere because of the
adverse effects of unhealthy work environment in many factories and also
due to the incidence of tropical diseases, long hours of work, low wages
causing malnutrition and poor stamina; illness of workers due to ignorance
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and poverty and urban conditions of life which do not agree with migrated
workers. Medical care and cash benefits are provided in the select sugar
mills to their workers for such reasons as sickness, maternity and
disablement and death or injury due to employment. The families of
workers are also covered to some extent. The select sugar mills have well-
equipped dispensary. Medical officers and qualified pharmacists render
medical services to the employees. First aid boxes are kept in each section
and important places with adequate medicines. Apart from the statutory
requirements, the medical officers provide special first-aid training to the
supervisors of the select sugar mills.
Occupational Health Services
These are essentially preventive schemes very common in the
industrially advanced western countries and are gaining in importance and
recognition in large sized undertakings in India. One of the main functions
of these health services is to protect workers against the health hazards
arising out of the work environment. The service includes carrying out of
periodical medical checks of certain categories of workers to detect early
signs of ill-health and prevent the outbreak of serious health complaints.
Section 87 of the Factories Act refers to dangerous occupations and states
that the state government is empowered to make rules in respect of any or
all classes of factories in which any operation exposes persons to serious
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risks of bodily, injury, poisoning or disease. The medical officers of the
select sugar mills carryout periodical medical checks to detect early signs of
ill-health of the employees.
Safety of the Employees
The select sugar mills made genuine efforts to provide a fair work
place to the employees. Employees are advised not to take chances either on
the job or off. All health and safety measures prescribed are strictly
followed. In case of any mishap or accident while on work, employees
should immediately bring it to the attention of the superiors. Unsafe
conditions jeopardizing safety of employees should be reported
immediately to the superiors in the select sugar mills. Each sugar mill has
its own security procedures and the employees are advised to strictly adhere
to clear information regarding security procedures followed in each mill.
Crèche
The Factories Act lays down that in any factory with more than 50
women workers; a crèche should be provided and maintained for children
less than six years in a clean and sanitary condition. The Act states that the
crèche should be under the care of women trained in child care and should
have adequate accommodation, lighting and ventilation. The state
government is empowered to make rules in respect of standards, equipment
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and facilities. For the benefit of the female employees, a crèche has been
provided within the mill premises in the select sugar mills.
Housing
Housing is an integral part of worker's welfare. Recommendation of
the 1LO states that housing should be a matter of national policy. Both the
Industrial Commission (1918) and the Royal Commission (1913) realized
the importance and necessity of improving housing conditions of industrial
workers and made recommendations for the purpose. The employees of the
select sugar mills are given accommodation on rent in the housing colony.
About 50% of the employees eligible for quarter accommodation have been
provided accommodation in their housing colony.
Transport Facilities
Transport facilities to and from the place of work are given to
workers as one of the desirable welfare amenities. This facility is gaining in
popularity because of growing urbanization, location of industries, transport
loads and traffic congestion. The main purpose of this amenity is to enable
the employees of surrounding villages to commute without any difficulty to
the nearby towns and cities, adequate numbers of buses are arranged
through Tamil Nadu State Transport Corporation/private bus operators.
Besides, the employees of the Sakthi Sugars and Prembalur Sugar Mills
Limited are provided a transport facility which is operated by the mills.
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Recreation and Cultural Facilities
Recreation is a leisure time activity which is a healthy diversion and
a spare-time occupation. It refreshes an individual mentally, lessens the
monotony and drudgery of his every day work, and develops his personality
on a wholesome basis. The workmen, staff and officers have been provided
with clubs, which are functioning in the select sugar mills, which conducts
regular cultural programmes. These clubs are financed by the management.
The managing committee elected in every year manages the clubs in the
select sugar mills. The clubs celebrate their Annual Day by conducting
various sports and games and organize picnics and excursions to their
members.
Educational Facilities
Education facilities form another important welfare programme for
industrial workers. Education would improve the quality of the labour force,
for it would provide opportunities for a proper training for the acquisition of
skills and techniques which are essential for workers in an industry and
which will enable them to adjust themselves to their particular way of life,
and to enable them to acquire broader values of life, personally, industrially
and socially. The need and importance of such educational facilities in India
have been accepted and emphasized by various commissions and
committees, such as Indian Industrial Commission (1958) the Royal
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Commission on Labour (193l), the National Commission on Labour
(1 966), the Malaviya Committee on Labour Welfare (1969), etc. In order to
enhance the employees’ career, the select sugar mills provide financial
assistance to their employees to impart approved educational and training
courses. If the course has a direct application to the employees’ work, he
can be reimbursed such cost and granted special leave for the examination.
Training and Development
Human resource development is a set of interrelated activities, by
which human potentialities are assessed, selectively upgraded and
appropriately deployed for achievement of envisioned goals that foster
human dignity. Organizations and individuals should develop and progress
simultaneously for their survival and attainment of mutual goals. Every
management has to train its employees in order to develop the organization.
Human resource development, in its turn, not solely but heavily depends
upon employee training and management development. Generally the
training needs of employees in the select sugar mills are determined on the
basis of job requirements. The technical employees are deputed to attend
the training programmes conducted by Sugar Research Institute, Vellore;
National Sugar Institute, Kanpur; and Vasantdada Sugar Institute, Pune.
The non-technical employees are attending the training programmes
conducted by various outside institutions. Most of the employees in the
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select sugar mills are deputed during off-season to attend the training
programmes without affecting the normal work of the organization.
Leave Travel Allowance
Not only to offer relaxation but also to provide a broader vision to
the employees of the select sugar mills and their wards this tempting
scheme is offered. The employees are eligible to get leave travel allowance
in each year. This scheme is a pleasant one to all employees in the select
sugar mills and their wards to enjoy and gain knowledge along with the
pleasant experience.
Loans and Advances
Employees of the select sugar mills are eligible to draw an advance
for genuine emergency situations like medical treatment, etc. on providing
required proofs. Employees will be eligible for advance only if there is no
debit balance. The amount permissible will be three times the take home
pay and it will be repayable by not exceeding five installments. Employees
are eligible to draw festival advance once in a year. A second advance can
be drawn only after the earlier festival advance is fully repaid.
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Bonus and Incentives
Employees of the select sugar mills shall be entitled to bonus in due
course in accordance with the provisions of the Payment of Bonus Act,
1965. Moreover, the employees of the select sugar mills are eligible for
production incentives as per the decision of the management announced
from time to time.
Co-operative and Saving Facilities
In the context of spiraling prices and the rising cost of living, the
importance of fair price shops and supply schemes cannot be
overemphasized. Though these supply schemes and shops can be operated
by the employer himself, it is the co-operative method which has been
found to be desirable and has been recommended again and again by
various committees and conventions. The co-operative credit societies also
help the worker to save for unforeseen domestic crises. For the benefit of
employees, in the select sugar mills, Co-operative Store is being run.
Rations, provisions, etc. are available in the co-operative store. Further, Co-
operative Credit and Thrift Society have been formed in the select sugar
mills to render financial assistance to the employees and to encourage
savings habits.
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Personal Counseling
By means of this service workers of the select sugar mills are able to
receive advice and counsel on some of the personnel and sometimes also on
personal problems inside and outside their place of work. Counseling helps
the workers of the select sugar mills to overcome his anxiety and troubles.
Distress Relief and Cash Benefits
There are many non-statutory welfare amenities available to
industrial workers, depending on the importance the employer attaches to
these benefits. One is an ex-gratis payment called distress relief and cash
benefits paid in case of death, injury, sickness, marriage or as a felicitation
grant. It is a gift made by the employer to his workers. Rs.4000/- is being
provided to the employees as funeral expenses if death occurs while in
service in the select sugar mills.
Social Security Measures
Employees feel insecure for many reasons such as inadequate wages,
lay off and retrenchments, accidents and injuries in the course of
employment, occupational hazards, sickness, old age, total or partial
disability, etc. These factors cause anxiety and fear in their minds. Thus, the
measures adopted to provide such protection to employees are known as
social security measures. These measures protect workers and their families
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through various benefits such as compensation, maternity, sickness and
other benefits.
Under Workmen’s Compensation Act 1923, compensation is payable
by the select sugar mills to workmen for all personal injuries caused to them
by accident arising out of and in the course of his employment which
disable him for more than three days. If the workman dies, the
compensation is to be paid to his dependents. Under Employee State
Insurance Act 1948, an insured person in the select sugar mills is entitled to
receive benefits such as medical benefit, sickness benefit, maternity benefit,
disablement benefit, dependents benefit, funeral benefit, etc. The Employee
Provident Funds and Miscellaneous Provisions Act, 1952 has made
schemes for three types of benefits viz, provident fund, family person and
deposit linked insurance. Under the Payment of Gratuity Act, 1962 gratuity
is payable to an employee of the sugar mill on the termination of his
employment after he has rendered continuous service for not less then five
years. The completion of continuous service of five years is, however, not
necessary where the termination of the employment is due to death or
disablement. The Maternity Benefits Act, 1961 applies to women in
factories, mines and other establishments. In the select sugar mills, married
women employees having not more than 2 living children are eligible for
maternity leave as per the provisions of the Maternity Benefit Act, 1961.
Employees Family Pension Scheme, 1971 seeks to provide some monetary
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relief to the family members of employees in the select sugar mills, who die
in service, that is, before superannuation. In the event of an employee's
death his family gets pension on a graded scale depending on the
employee's last salary grade.
3.8. Summary
In this chapter, an attempt has been made to review the labour
welfare measures of the select sugar mills in Tamil Nadu. None of the sugar
mills in Tamil Nadu had separate human resource department. In the co-
operative/government sugar mills, Special Officer is the competent
authority and performs various human resource functions. Since the sugar
mills are manufacturing organizations they are covered under Factories Act
1948, the sugar mills providing statutory welfare measures such as washing
facilities, facilities for storing, drying and clothing, facilities for sitting, first
aid appliances, canteens, rest room facilities, establishment of crèches and
appointment of welfare officers. The non-statutory welfare measures of the
select sugar mills include housing facility, loans and advances, educational
facilities, recreation facilities, transport facilities, employees’ co-operative
store and so on.