Cooperative wins here as private effort fails

Ratikant Mohanty

Bhubaneswar, March 13: In an era of disinvestment and privatisation, a loss-making sugar industry which was established by a private firm in 1994, has recently seen a turnaround in its fate, especially after it was bought and run by a cooperative society.

Bijayajanda Cooperative Sugar Mills of Deogaon in western Orissa's Bolangir district, has made a profit of Rs 22 lakh this year. The plant had also made a profit of Rs 20 lakh last year.
Chennai-based Ponni Sugar and Chemicals Limited had established the sugar plant with a project cost of Rs 64 crore in 1994. The plant could not operate successfully and it ran into rough weather as adequate sugarcane was not available for crushing.

By 2001, the plant had incurred a whopping loss of Rs 54 crore and finally went to the jurisdiction of ICCI Bank, the main financier.

After lying idle for four years, Bijayanada Cooperative Society took over the plant from the ICCI Bank on Februayr 1, 2005. Under the able leadership of Jangeswar Babu, a noted cooperative moment leader of Orissa, the sugar mills reached its new heights last year when it recorded cane crushing to the tune of 30,500 tonnes. This year the cane crushing has touched 57,000 tonnes, said secretary of Bijayanananda Cooperative Society Biswanth Babu.

As against annual sugar requirement of 4.5 metric tonnes, production of the commodity in Orissa is just 15 per cent of the demand. The balance quantity is imported from other states.
Industrialists feel the state has much potential for the growth of sugar industries.

"If concerted efforts are made by both the prospective entrepreneurs and the state government, as many as 20 more sugar industries could be established," said Trailokya Mishra, chairman of Nayagarh Sugar Complex.

State industry minister Biswa Bhusan Harichandan said since sugarcane cultivation fetched good return, the government was committed provide incentives as per the state industrial policy to the existing operational sugar industries. The government is also equally serious to encourage setting up of new sugar industries through Industries Facilitation Act and Single Window System.

Director of state industries department Hemant Sharma told this paper that the government was focusing on development of agriculture based industries.

"The state government is giving stress on agro-based industries. Efforts are being made to create cluster industries to agro and food processing industrial units," Mr Sharma said, adding prospective entrepreneurs would be encouraged to establish such ventures.

(Ratikant Mohanty is a senior journalist having experience of over 25 years. Straight and upright, Mr Mohanty is known for his righteousness and good understanding of subjects)