PROPOSAL FOR ASSIGNMENT

Cane Farmers Cooperative Society

Faizabad, Lucknow, Uttar Pradesh

Submitted By: Group 1 Submitted To: Prof. Pradeep Mishra

Anoop Kumar Mishra (12201005) Abhishek Singh (12201002) Chandra Prakash (12201011) Suvrojit Choudhury (12201043) Aachintya Damera (12201001)

KIIT School of Rural Management, Bhubaneswr

About the Cooperative

1. Project Rationale:
Why there is a need to form a co-operative?? The Cane farmers co-operative society is an apex level cane Cooperative Society registered under Cooperative Society Act-1962 in the state of Uttar Pradesh. It came into existence to integrate the cane farmers in rural areas of the state with consumers such as sugar mills. Its main activities include promoting, production, procurement, processing and marketing of cane for economic development of the rural farming community in Uttar Pradesh. While the co-operative targets to be a world class organization in efficient cane farming, it also envisions contributing to the state economy through upliftment of farmers and preserving the ecological balance.

There is huge need of co-operative in this area as the farmers do not get what they deserve. They get very less price of their produce and it does not compensate them fully. The sugar mill owners have always an upper hand than farmers. There is rapid rise in cost of production of sugarcane but the price they are being given by the sugar mill owners in return of their produce is hardly increasing and therefore the farmer is not getting good margin. Also the farmers cannot bargain due to the fact that he is alone and will not be able to influence or pressurize the sugar mill owners for better price. Co-operatives have capacity to influence because they have a good number of farmers and sufficient quantity of produce. So making a co-operative will help the sugarcane farmers in a great way and they will be able to get fair price of their produce.

Thus, Objectives of our Cane Cooperative Society could be: 1. Enhancement of production 2. Improving the quality of production 3. Better price realization 4. Reducing risk

2 | Proposal for Assignment: Cooperative Management

2. Details about the area and members:

A. Geographical, Social and Economical: Location: Faizabad, UP S.No. 1 2 Particulars Geographical area Population Male Female Rural Population Urban Population Number of village Blocks Commercial Banks Agriculture (Cultivated land) Production of sugarcane Year 2011 2011 2011 2011 2011 2011 2011 2011 2011 2011 Description 2522 sq m 1377000 1211000 2008000 481000 1321 11 183 385000 ha 1329000 metric ton

3 4 5 6 7 8 9

The Climate of the district may be treated as normal. The effect of rains, winter and summer are not very harsh. So a pleasant whether remains throughout the year. Usually the summer expands from April to July, the rainy season from August to September and the winter from October to March. Rainfall Normal : 1035 mm. Temperature : Maximum 43.7 C, Minimum 1.0 C

3. DFID framework:
1. Vulnerability Context: (a) Shocks: Flood, Drought, Crop Failure, Dispute among farmers, Government and Sugar Mill owners. (b) Trend: 1. Some farmers procure their sugar cane himself and produce low quality Jaggery 2. Some farmers already members of State Sugar cooperative ltd. Uttar Pradesh but they are not satisfy with these sugar mills.

3 | Proposal for Assignment: Cooperative Management

3. Farmers are producing sugar cane with old trend and technology, so productivity is very low. 4. Farmers are using rejected seeds of sugar cane so they are not getting right price of their produce. (c) Seasonality: 1. Seasonality is basic problem of sugar cane industry because its running in only from Nov. to April. 2. The procurement of sugar cane is also seasonal. 2. Livelihood Assets: 1. Human Capital: Health of Farmers, Knowledge of farming, Skills and Informations, ability of labor 2. Natural Capital: Natural Resources (Land, Water, Air & Environmental resources) 3. Social Capital: Relationships of trust, membership of groups, networks etc. 4. Financial Capital: Financial resources 5. Physical Capital: Basic infrastructure (Water, energy, transport, communications, equipment of production) 3. Structures and process: 1. Levels of Institutions (Working Pattern of government institutions) 2. Role of politics and governance 3. Policies and laws 4. Culture and institutions 4. Outcomes: 1. More income to the farmers 2. Increased well being 3. Reduced vulnerability 4. Improved production and productivity (Food security) 5. More sustainable use of natural resources 5. Benefits to the Community: 1. Economic Development 2. Community Development

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3. Human Development

4. Feasibility Analysis

Technical Feasibility:
1. Agricultural implements 2. Agricultural land 3. Irrigation Facility 4. Transportation 5. Weighing Unit 6. Plant and Machinery 7. Land and Building 8. Manpower

Financial Feasibility:
1. Cost of Project 2. Profit & Loss Account 3. Demand forecasting Analysis 4. Cost benefit Analysis 5. Break Even Point 6. Patronage Refund

Commercial Feasibility:
1. Trend - Both Historical & Future estimates 2. Systematic input - output supply 3. Market analysis ( Local, State, National level) 4. Demand & Supply analysis

Environment Analysis:
1. Political Environment 2. Policy & Governance 3. Labour Law

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Economic Feasibility:
1. Current economic growth analysis 2. MSME Sector growth analysis 3. Manufacturing sector growth analysis

[5] Organizational Structure

Our cooperative is based on the three tire system. The structure consists of Cane corporative society at village level affiliated to cane union at block level which in turn is federated into cane federation at district level. 1. Tire 1 Village Level (Farmers Cooperatives) 2. Tire 2 Block Level (Block Unions) 3. Tire 3 District Level (District Level Federation) Village Level: collection of sugarcane from the farmers of the village and payment based on quality and quantity by the bank Providing support services, pesticide, fertilizers, high quality of seeds, transportation facility Selling sugarcane for the local consumers of the village Supplying cane to district cane union federation

Block Level: Procurement of sugar cane from the village cane societies of the block Arranging transportation of sugarcane from village to cane federation Conducting training on cooperative development for sugarcane producers and conducting skill development and leadership development training for villagers and management committee members. Providing management support to the farmers of the village along with supervision of its activities Establishment of sugarcane weighing machines at block level

6 | Proposal for Assignment: Cooperative Management

District Level: Marketing of sugarcane and sugar cane products processed and paced by the sugarcane federation. Establishment of distribution network for marketing of sugarcane products Arranging transportation of sugarcane and products from sugar cane federation to market Creating and maintaining brand for marketing of Jaggery and sugar cane products Providing support services to sugar cane unions and members like technical inputs, management support and advisory services Arranging for common purchase of raw materials used to produce sugarcane and packing of sugarcane products Decide on the prices of sugarcane and products to be paid to sugarcane farmers. Arranging finance for the sugarcane unions and providing them technical and marketing functions Conflict resolution and keeping the entire structure intact Conduct long-term sugarcane production, procurement and processing as well as marketing planning.

7 | Proposal for Assignment: Cooperative Management