A Comparative Study of Two Co-Operative Sugar Mills & Two Private Sugar Mills Ltd. in Haryana

Sugar Industry occupies an important place in Indian economy. A special feature of this industry is its close connection with the agricultural. Its contribution to the agricultural development can be gauged from the fact that sugar farming constitutes 1.5 to 2.0 % of gross area under cultivation and nearly lakh technical, skilled, unskilled industrial sector. India is known to be the home of sugar cane and sugar. The number of sugar unit in India is 450 situated mainly in the sugar cane growing areas of these 252 are situated in Co-operative sector and 134 in the private sector and the remaining are in public sector. The Haryana state federation of co-operative sugar mills ltd. Chandigarh was establishes along with the formation of Haryana state. This is an apex body of affiliated co-operative sugar mills at the state level with the main objective of co-ordination and facilitating the smooth working of the affiliated sugar mills. It also assists in modernization/expansion of the existing coop sugar mills and in the establishment of new sugar units in the co-operative sector in the state.

Most of the researchers in commerce are conducted with the help of sample surveys. Fewer researchers have been come out based on intensive study of a single organization. In the conventional method of sample survey the individual unit losses it identity. The statistical inference derived may not be applicable even to a fewer number of units in the sample. Therefore there is a trend towards having system approach, to its problem. This approach emphasis the total or overall view calls for sufficient background and contact with the organization to appreciate the problem effectively. As such four organization ―Shahbad, Karnal, Yamunanagar and Bhadson‖ sugar mills were selected of the study. The present study is confined to study of ―financial management to co-operative sugar mills ltd‖. and to private sugar mills ltd. ―In the opinion of the researchers, a time span of five years for such study is quite reasonable to get the trend of growth , manure the efficiency of financial management to evaluate the financial performance and effective utilization of its resources. The period has been considered enough to set reliability and other trend vales of various financial variables. The main focus of this report is to find out the soundness of financial position, effective utilization of resources, efficiency in the management of fixed as well as current assets and the level of profitability for short and long term point of view. The important objectives are as follows: 1. To examine the working efficiency of sugar mills. 2. To study the factors affecting the efficiency and performance of sugar mills. 3. To study the financial efficiency of sugars mills with the help of debt equity ratio, profitability ratio, current ratio. collection of data is made by with the help of primary data and secondary data.

The Primary data were obtained through personal visits to the selected sugar mills and by informally interviewing the members of the managed staff as well as technical staff. Some members of the management sugar fed office were informally interviewed at Panchkula.

The secondary data were obtained from the records maintained by the sugar mills, sugar fed journal and profit and loss account and related dissertation.

A number of modern tools and techniques of management such as organizational analysis percentage ratio etc. have been applies to interpret the data. The study covers mainly four sugar mills of Haryana out of which too are established in co-operative sector which are as follow:- (i) Shahbad co-operative sugar mill Ltd. (ii) Karnal co-operative sugar mill Ltd. And the remaining two are in private sectors which are as follows: (i) Saraswati sugar mill Pvt. Ltd. Yamunanagar. (ii) Picaddly sugar mill Pvt. Ltd. Bhadson.

In a broader sense the purpose behind the study is to find out the profitability and performance of co-operative and private sugar mills in Haryana. The important objectives are as follows:- • To examine the working efficiency and factors affecting the performance of sugar mills. • To study the gross working day of sugar mills. • To find out the factor responsible for low performance and to suggest measures.

(i) From analysis it has merged that Shahbad co-operative sugar mill is utilizing more external sources as compared to internal which were using their internal sources of finance efficiency effectively to maximize the profitability of the mill. (ii) The gross working days in a year are only 104 to 180 and remaining days there is no work in sugar mill. The mills in Haryana has to work only half in a year and remaining half year the mill has to bear the expenditure without any output. The main reason is short age of raw material. In 2008-2009 in Shahbad, Karnal, Yamunanagar, Bhadson sugar mill worked only 159,142,155,154 respectively days in a year. (iii) The Haryana government has reduced the rate of interest on co-operative loans there farmers to tone of Rs. 108 Crore. It has also constituted reconciliation bonds at the benefitting district level for disposal of co-operative loan cases. There are also several welfare schemes for the people.

On the basis of study conducted and observation made, it can be concluded that Sugar occupies an important place in Indian Economy. It is influenced to a great extent by the prices of ―Sugarcane‖ industry, main raw material, which in turns depends upon the price of competitive food crop on the one hand, and the cane price fixed by the Government on the other. There should be a proper utilization of capacity of sugar industries in Haryana. Only Yamunanagar and Bhadson sugar mills which are in private sector has utilized their full capacity but other sugar mills of Haryana are not utilizing their full capacity. The gross working days of the mills should be increased in fixing the sugarcane prices by the Government of Haryana should behave rationally. State Government is advised not to fix prices for taking Political Benefits. State government should fix the price after considering the minimum statuary price. This will decrease cost of production and increase profit.

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No. 47 5. Co-operative March 2007, Vol. 5, No 38 6. Co-operative Sugar, Dec 2007, Vol-37, No 48.

M.Com, M.Phil., M.B.A, HTET, NET (Management), NET (Commerce) Assistant Professor of Commerce, Ishar Jyot Degree College, Pehowa, Kurukshetra neelamdevi13@gmail.com