Adoption of social land reforms policy and industrial policy resolution after independence by the government led to establishment of sugar factories in cooperative sector especially in Maharashtra. The development of cooperative sector brought about a tremendous welcome transformation in rural areas. Over the years cooperative sugar sectors faced many challenges. The cyclic nature of industry, inefficiency, financial management, lack of professionalism, methodology of distribution of entire surplus to members, lack of resources and inability to provide margin for investment loans as well as working capital are the crucial concerns in cooperative sector. The delay in decision-making and non-utilization of by-products, inventory management, overstqffing and lack of professional approach contribute to inefficiency and mismanagement. The decreasing farm productivity entails investment in future thrust areas of agriculture such as research and development in crop improvement, crop protection, extension mechanism, seasonal and varietal planning, integrated nutrient/ pest management, efficient use of water, mechanization for economic sugarcane production, ratoon management and the most importantly adequate farm credit to achieve maximum sugarcane yield and sugar recovery. The introspection and a deep thinking is necessary regarding the role of Government in present policies governing the sugar sector.
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