Unit 4: Sugarcane and Fertilizer Cooperatives
Sugarcane & Fertilizer Cooperatives
Sugarcane and fertilizer cooperatives are crucial for the Indian agricultural economy because:
- India is the 2nd largest sugar producer in the world.
- Fertilizers are essential for increasing farm productivity.
- Co-operatives ensure fair prices for sugarcane growers and timely supply of fertilizers at reasonable rates.
Uttar Pradesh Sugar Cane Co-operative Societies
Uttar Pradesh is the largest sugarcane-producing state in India (≈45% of India’s total).
The UP Co-operative Sugarcane Societies were formed to:
- Protect the interests of sugarcane farmers
- Ensure regular supply to sugar mills
- Provide agricultural support and fair payments
Main Functions
- Cane Registration & Surveying - Maintain records of farmers, their land, and cane variety.
- Supply of Inputs - Provide seeds, fertilizers, pesticides, and agricultural tools.
- Cane Development Work - Training on high-yield varieties, irrigation methods, soil testing.
- Coordination Between Farmers & Mills - Allocate cane area to specific mills to avoid disputes.
- Weighing & Payment Monitoring - Ensure fair weighing at collection centers and timely payment from mills.
- Transport Arrangement - Facilitate movement of sugarcane from field to mills.
The UP Cane Co-operative Service Regulations, 1975
These regulations govern:
A. Staff Recruitment & Service Conditions
- Recruitment of secretaries, clerks, supervisors
- Pay scale and allowances
- Promotions and performance reviews
B. Duties & Responsibilities
- Conduct surveys
- Maintain farmer records
- Implement government policies
- Manage cane procurement
C. Disciplinary Actions
- Rules for misconduct
- Penalties, suspension, termination
Purpose of the Regulations
To create a transparent, uniform, and accountable system for managing sugarcane cooperatives in UP.
Problems of MSP (Minimum Support Price) for Sugarcane Growers
Although the government announces FRP (Fair & Remunerative Price) and states like UP fix SAP (State Advised Price), farmers face multiple problems:
A. Delayed Payments
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Mills often delay payment by months, affecting farmers’ cash flow.
B. High Cost of Production
-
Fertilizer, diesel, and labor costs have risen, but prices don’t match costs.
C. Mills’ Financial Losses
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Mills claim that SAP is too high, leading to losses and delayed procurement.
D. No Link to Market Price
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Unlike MSP for wheat/rice, sugarcane prices are not directly linked to sugar market price.
E. Monocropping Risks
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Farmers grow only sugarcane due to assured procurement → soil degradation.
F. Lack of Diversification
-
Fixed procurement system discourages switching to more profitable crops.
Result: Farmer distress + mill financial stress = continuous payment crisis.
Fertilizer Cooperatives – IFFCO & KRIBHCO
A. IFFCO – Indian Farmers Fertiliser Cooperative Limited
Established: 1967
Headquarters: New Delhi
Type: World’s largest fertilizer cooperative
Objectives
- Provide quality fertilizers to farmers at affordable prices
- Improve soil health and crop productivity
- Support farmers with training and services
Functions
- Production and distribution of fertilizers (Urea, DAP, NPK)
- Operation of large fertilizer plants at Kalol, Kandla, Aonla, Phulpur
- Training programs through IFFCO Kisan Sewa Kendras
- Soil testing labs
- Farmer education on modern farming
- Rural telecommunication services (IFFCO Kisan app)
KRIBHCO – Krishak Bharati Cooperative Limited
Established: 1980
Headquarters: Noida
Objectives
- Produce and distribute fertilizers
- Strengthen the agricultural cooperative network
Functions
- Production of Urea, Bio-fertilizers, and soil nutrients
- Supply through cooperative societies across India
- Promotion of organic farming
- Micro-irrigation and water management projects
- Training and awareness programs
Role of IFFCO & KRIBHCO in Agricultural Productivity
A. Ensuring Timely Supply of Fertilizers
- Urea, DAP, NPK available during peak seasons
- Prevent black marketing and hoarding
B. Education & Training
- Farmer meetings, soil testing, fertilizer dose recommendations
- Promote balanced nutrient use
C. Quality Inputs
- Provide reliable fertilizers avoiding adulteration
- Introduce biofertilizers to improve soil structure
D. Infrastructure Support
-
Warehouses, distribution centers, rural retail shops
E. Technological Adoption
- Mobile apps and digital platforms for farmer advisory
- Weather updates, crop disease alerts
F. Sustainable Agriculture
- Promotion of organic and eco-friendly fertilizers
- Water conservation technologies
Impact: Higher farm productivity, lower wastage, better soil health, and increased farmer income.
Recent Developments in Fertilizer and Sugarcane Cooperatives
A. Digitalization
- Online cane slips in UP
- Digital payment systems for cane dues
- Mobile advisory apps (IFFCO Kisan, KRIBHCO Green)
B. Promotion of Bio-fertilizers
- Rapid growth in organic farming
- Increased demand for biofertilizers and vermicompost
C. Smart Irrigation
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Drip irrigation, sprinkler systems promoted by cooperatives
D. Nanotechnology
IFFCO launched Nano Urea to replace traditional urea sacks
- Low cost
- High efficiency
- Low environmental damage
E. Diversification
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Cooperatives investing in renewable energy, agro-processing, and storage
Problems Faced by Sugarcane & Fertilizer Cooperatives
| Problem | Explanation |
|---|---|
| Delayed Payments | Mills fail to pay farmers on time |
| Political Interference | Cooperative elections often politicized |
| Financial Mismanagement | Poor accounting and corruption |
| Distribution Issues | Shortage of fertilizers during peak demand |
| Over-dependence on Cane | Soil degradation due to monocropping |
| High Production Cost | Diesel, labor, irrigation cost rising |
| Low Awareness | Improper fertilizer usage by farmers |
| Environmental Concerns | Overuse of chemicals harming soil and water |
Summary Table for Revision
| Topic | Key Points |
|---|---|
| UP Sugarcane Cooperatives | Protect farmers, procurement, payment monitoring |
| Service Regulations 1975 | Recruitment, duties, discipline |
| MSP Problems | Delayed payments, cost mismatch, monocropping |
| IFFCO | Largest cooperative; fertilizers, training, mobile apps |
| KRIBHCO | Urea, biofertilizers, irrigation support |
| Role in Agriculture | Inputs, training, soil testing, sustainability |
| Recent Trends | Nano-urea, digitalization, organic farming |
| Issues | Political, financial, environmental |