CHAPTER III

LABOUR WELFARE MEASURES OF THE SUGAR MILLS

3.1. Introduction

Agriculture is the oldest and prime source of earnings in the world

from time immemorial. Indian economy is basically an agrarian economy

with an overflowing population. Nearly 70 per cent of the working

population of this country is dependent on agriculture and a very significant

portion of national income comes from this sector. Thus, agriculture has

been the main source of earning of vast masses as well as the mainstay of

the Indian economy. Geographically, the Indian subcontinent entirely lies to

the south of equator and hence the climatic conditions are suitable for

sugarcane cultivation in nearly all parts of the country. The climatic

conditions of the tropical belt are however more favourable to the sugarcane

cultivation. The states lying south of the Narmada River i.e. Maharashtra,

Andra Pradesh, Karnataka and Tamil Nadu constitute the best-suited area

for sugarcane growing. The number of growers of this crop is about

4 million. Twenty million people in this country derive their livelihood

from sugarcane cultivation. In the cropping pattern of the country,

sugarcane occupies an area 1.5 per cent to 2 per cent of the cultivable area.

80

3.2. Role of Sugar Mills in Socio-Economic Development

Sugar industry is the second major industry that accounts for nearly 8

per cent of industrial investment and provides employment for about 7.4 per

cent of the industrial working force. It is the foremost agro-based rural

industry providing direct employment to 4 lakh people. Besides about 35

lakh people are indirectly connected with this industry. A sugar mill of

1250 tonnes crushing capacity per day creates an employment potentiality

of around 300 to 350 permanent workers and equal number of seasonal

workers. Besides this, for harvesting sugarcane, 5000 male and female

workers are required to be engaged during the crushing season. Likewise

around 100 tractors and 1000 bullock carts are given employment during

the crushing season.1

There is no exaggeration in the claim that the sugar mills in India

represent one of the most significant developments since Independence. The

sugar mills have brought about significant socio-economic development in

their command areas. They have not only modernized agriculture but have

also played a key role in transforming the traditional, indebted, idle and lazy

farmers into a dynamic, relatively better off, hard-working and efficient

agriculturalists. It attempted to imbibe self-confidence in the minds of the

1 Kharche, R (1989). Sugar Co-operatives in Developing Economy, Aurangabad: Parimal Prakashan, pp.25-26.

81

farmers, which is very important in building up new industrial and business

leadership from all rural masses.

Where the sugar mills have been working successfully, they have

rendered considerable socio-economic services to the rural community.

They have opened schools, colleges, hospitals, etc. and provided numerous

other facilities to the farmers in general. These activities and services are

more evident in Maharashtra and Gujarat.2 The sugar mills have brought

about a far reaching social, economic and political transformation in the

rural areas by providing various facilities like modernization of agriculture,

extension of the irrigation, employment, infrastructural facilities, education,

health and recreation facilities, changing cropping pattern, and have

promoted dairy and poultry activities. Thus, the sugar mills have acted as

catalyst for the socio-economic development and these activities lead to

betterment of the economic conditions, not only of the farmers, but also of

landless labourers and other people in the areas.3

2 Report of the All India Conference of Co-operative Sugar Factories, Organized by National Co-operative Development Corporation, New Delhi, p.24. 3 Andhale, G.B (1972). Study of Impact of Co-operative Sugar Factory on the Lives of Farmers with Special Reference to Sangamer Bhag Sahakari Sakhar Carkhana, Unpublished Ph.D. Thesis Submitted to Mahatma Phule Krishi Vidyapeet, Rahuri.

82

3.3. Growth and Progress of Sugar Industry in India

The sugar industry plays a leading role in global sugar market being

the world's second largest producer after Brazil, producing nearly 15 to 25

per cent of global sugar and sugarcane, respectively. In addition to

traditional white sugar about 6-8 MT alternative sweeteners are also

produced in the decentralized sectors. During the beginning of 20th century,

the Indian farmers woke up to the loss suffered by them and therefore,

started devising ways and means to avoid exploitation by middlemen. The

incentive to the farmer to produce more is the fair return to him of the

produce. The processing of agricultural produce adds value to the produce

and increases the possibility of fair return of the produce to the farmers.

Efforts to manufacture sugar from sugarcane on commercial lines were

made only at the beginning of the twentieth century and the industry

flourished in India during this century only. The private sugar mills

established as a joint stock companies exploited the cane growers in the

region by taking their lands on lease basis for a long period on a nominal

rent and by paying meager price for their sugarcane. Mostly the cane

growers utilized their cane for the production of jaggary in the early period,

but instability in the price of the jaggary compelled the farmers to sell their

sugarcane to private sugar mills. The situation created by these private

sugar mills paved way for establishment of the sugar factory in the co-

operative sector. The Indian farmers felt that certain functions performed by

83

the middlemen could jointly be performed by them and this gave the birth

to processing of agricultural produce on co-operative basis. The dawn of

independence in 1947 brought its wake a change in the outlook and policy

of the nation. One of the ways for achieving this objective is to encourage

peasants to organize and manage processing industry, based on the crops

produced by them.4

The first co-operative sugar mill was established in 1920 at

Malegaon in Baramathi Taluk of Pune District. It survived hardly only for

two years. In the beginning four co-operative sugar mills came up, namely,

Biswan in Uttar Pradesh and Thumapala, Etikoppaka and Vuyyuru in the

Madras Presidency. For want of organizational, managerial and financial

support, three out of these four co-operative sugar mills except Etikoppaka

co-operative mill were sold off to private enterprise. Good leadership,

strong backing of co-operative banks, gradual and cautious expansions,

good relations with membership and payment of higher cane price however

saved Etikoppaka factory. In 1919-20 the number of sugar mills was 19, but

began to increase slowly. In 2009-10, there were 490 sugar mills in India.

The States of Uttar Pradesh, Maharashtra and Tamil Nadu occupy the first,

second and third places respectively in having more number of sugar mills.

4 Jain, A.P (1956). Foreword to Growers own Co-operative Sugar Factories, New Delhi: Ministry of Food and Agriculture, Government of India.

84

Sugarcane is the main source from which sugar is produced in India.

Sugarcane areas in India are broadly divided into two distinct belts,

subtropical and tropical. The subtropical belt comprises the States of Uttar

Pradesh, Bihar, Punjab, West Bengal, Assam, Rajasthan, Madhya Pradesh

and Orissa. The tropical belt covers the States of Maharashtra, Gujarat,

Andhra Pradesh, Tamil Nadu, Karnataka and Kerala. The two belts are

characterized by the marked difference in climate and agricultural

conditions, more than three-fourth of the area under sugarcane in the

country has long been in the subtropical belt.

3.3.1. Area under Cultivation, Production and Yield of Sugarcane in

India

Area under cultivation, production and yield of sugarcane in India

for a period of 10 years from 2000-01 to 2009-10 are shown in Table 3.1.

85

TABLE 3.1

Area under Cultivation, Production and Yield of Sugarcane in India

Year Area Under Sugarcane

(‘000 hectare)

Production of Sugar Cane (‘000 tonnes)

Yield of Sugarcane (tonnes per

hectare)

2000-01 4316 295.956 68.60

2001-02 4430 298.422 67.40

2002-03 4361 281.575 64.60

2003-04 3938 233.862 59.40

2004-05 3662 237.088 64.80

2005-06 4201 281.172 66.90

2006-07 5151 355.520 69.00

2007-08 5055 348.188 68.90

2008-09 4414 285.029 64.60

2009-10 4202 277.750 66.10

Average 4373 289.456 66.03 Source: Co-operative Sugar, Vol.42, No.4, December, 2010.

The area under sugarcane production in India shows a progressive

increase from 4316 thousand hectares in 2000-01 to 5151 hectares in 2006-

07 and 4202 hectares in 2009-10. The average area under sugarcane

production for the period from 2000-01 to 2009-10 was 4373 hectares. The

production of sugarcane in the country was 295.956 thousand tonnes in the

year 2000-01 and 277.750 thousand tonnes in the year 2009-10. The highest

production of sugarcane was registered in the year 2006-07 with 355.520

thousand tonnes. However, the yield of sugarcane per hectare showed a

86

decline trend from 68.60 tonnes in 2000-01 to 66.90 tonnes in 2005-06. The

yield of sugarcane for the year 2009-10 was 66.10 tonnes per hectare. The

average yield of sugarcane for the period from 2000-01 to 2009-10 was

66.03 tonnes per hectare.

3.3.2. No. of Sugar Mills in Operation in India

Table 3.2 shows the number of sugar mills in operation in India for a

period of 10 years from 2000-01 to 2009-10.

TABLE 3.2

No. of Sugar Mills in Operation in India

Year No. of Mills in Operation

Average Duration

(Days)

Average Capacity (Tonnes

Per Day)

2000-01 436 138 3203

2001-02 434 138 3285

2002-03 453 140 3343

2003-04 422 99 3493

2004-05 400 97 3508

2005-06 455 125 3619

2006-07 504 173 3561

2007-08 516 149 3586

2008-09 489 87 3751

2009-10 490 109 3846

Average 460 126 3519

Source: Co-operative Sugar, Vol.42, No.4, December, 2010.

87

The above table shows the number of mills in operation, average

duration and average capacity of the sugar mills in India. The number of

sugar mills in operation in India has shown a progressive increase from 436

in 2000-01 to 455 in 2005-06 and 490 in 2009-10. The average duration

declined from 138 days in 2000-01 to 125 days in 2005-06 and to 109 days

in 2009-10. At the same time, the average capacity of the sugar mills

showed a progressive increase from 3203 tonnes in 2000-01 to 3619 tonnes

in 2005-06 and 3846 tonnes in 2009-10. The average capacity of the mills

for the period of 10 years from 2000-01 to 2009-10 was 3519 tonnes.

3.3.3. Production of Sugar and Molasses in India

Production of sugar and molasses in India for a period of 10 years

from 2000-01 to 2009-10 is shown in Table 3.3.

88

TABLE 3.3

Production of Sugar and Molasses in India

Sugar Year Production

(in Million tonnes) Recovery (% Cane)

Molasses (‘000 tonnes)

2000-01 18.511 10.48 7820

2001-02 18.528 10.27 8073

2002-03 20.145 10.36 8879

2003-04 13.546 10.22 5905

2004-05 12.690 10.17 5513

2005-06 19.267 10.21 8549

2006-07 28.328 10.16 13111

2007-08 26.357 10.55 11313

2008-09 14.539 10.03 6546

2009-10 18.912 10.19 8400

Average 19.082 10.26 8411

Source: Co-operative Sugar, Vol.42, No.4, December, 2010.

The production of sugar shows a progressive increase from 18.511

million tonnes in 2000-01 to 19.267 million tonnes in 2005-06, and

declined to 18.912 million tonnes in 2009-10. The average sugar production

for the period from 2000-01 to 2009-10 was 19.082 million tonnes. There

was an erratic change in the recovery of sugar during the period from 2000-

01 to 2009-10. The highest recovery (10.55%) was registered in the year

2007-08 and the least recovery (10.03%) was registered in the year 2008-

89

09. The production of molasses showed an erratic change during the period

from 2000-01 to 2009-10. The production of molasses was 7820 thousand

tonnes in 2000-01, 8549 thousand tonnes in 2005-06 and 8400 thousand

tonnes in 2009-10.

3.3.4. Consumption, Import and Export of Sugar in India

Table 3.4 indicates consumption, import and export of sugar in India

for a period of 10 years from 2000-01 to 2009-10.

TABLE 3.4 Consumption, Import and Export of Sugar in India

Year Consumption (Lakh Tonnes)

Export ('000 Metric Tonnes)

Import ('000 Metric Tonnes)

2000-01 162.00 338.691 30.404

2001-02 167.81 1456.448 26.578

2002-03 183.84 1662.370 41.430

2003-04 172.85 1200.600 74.400

2004-05 185.00 108.587 933.000

2005-06 189.45 316.850 558.770

2006-07 201.60 1643.403 1.052

2007-08 220.00 4684.554 0.494

2008-09 230.00 3331.997 386.099

2009-10 210.00 44.045 2424.045

Average 192.25 1478.75 447.627 Source: Cooperative Sugar, Vol.42, No.4, December, 2010.

90

It is inferred from the above table that the consumption of sugar

showed an erratic change over the period of 10 years. The consumption of

sugar was 162.00 lakh tonnes in 2000-01 and 189.45 lakh tonnes in 2005-06

and 210.00 lakh tonnes in 2009-10. The average consumption of sugar for

the period from 2000-01 to 2009-10 was 192.25 lakh tonnes. The export of

sugar also shows an erratic change over the period of 10 years. The highest

value of export (4684.554 thousand metric tonnes) was registered in the

year 2007-08 and the least (44.045 thousand metric tonnes) was registered

in the year 2009-10. The average export of sugar for the period of 10 years

was 1478.755 thousand metric tonnes. Likewise, the import of sugar also

shows an erratic change. The import of sugar was 30.404 thousand metric

tonnes in the year 2000-01, 558.770 thousand metric tonnes in the year

2005-06 and 2424.045 thousand metric tonnes in the year 2009-10. The

average import of sugar for the period of 10 years was 447.627 thousand

metric tonnes.

3.4. Sugar Industry in Tamil Nadu

The agro based sugar mills play an important role in the economic

growth of rural areas with the sole aim to generate large scale direct

employment. Apart from that, a lot of indirect employment to rural

population is also provided. Tamil Nadu sugar industry is responsible for

about 10% of the total sugar production in India. The sugar industry faced a

91

boom in the 1980s, but the crisis era started from 1990, all after the

economic liberalization. With the surge in the procurement price of

sugarcane, surplus production and reduction in the open market sugar price,

directed the industry and the sugar factories, thereafter to have a glut of

stocks. In Tamil Nadu the soil is suitable for growing sugarcane and it has a

unique feature of sub-soil drainage, which is helpful to sugarcane

cultivation. The favourable climatic conditions coupled with adoption of

modern methods of cultivation by farmers, hard work by them and

development efforts by the sugar mills resulted in faster growth of sugar

industry in Tamil Nadu. Sugar industry provides direct employment to 0.50

lakh people and about 25 lakh people are indirectly connected with this

industry in Tamil Nadu.

3.4.1. Area under Cultivation, Production and Yield of Sugarcane in Tamil Nadu

Table 3.5 shows area under cultivation, production and yield of

sugarcane in Tamil Nadu for a period of 10 years from 2000-01 to 2009-10.

92

TABLE 3.5

Area under Cultivation, Production and Yield of Sugarcane in Tamil Nadu

Year Area under Sugarcane

(in ‘000 Hectare)

Production of Sugarcane

(in ‘000 tonnes)

Yield of Sugarcane (Tonnes per

Hectare)

2000-01 315 33188 105.30

2001-02 321 32620 101.60

2002-03 284 30282 106.80

2003-04 192 17656 091.90

2004-05 232 23396 100.80

2005-06 336 35107 104.70

2006-07 391 41124 105.10

2007-08 354 38071 107.50

2008-09 309 32804 106.20

2009-10 314 31807 101.20

Average 305 31605 103.10 Source: Cooperative Sugar, Vol.42, No.4, December, 2010.

The area under sugarcane production was 315 thousand hectare in

2000-01, 232 thousand hectare in 2004-05 and 314 thousand hectare in

2009-10. The average area under sugarcane production for the period from

2000-01 to 2009-10 was 305 thousand hectare. The production of sugarcane

was subject to an erratic change over the period of 10 years. The highest

production of sugarcane (41124 thousand tonnes) was in the year 2006-07

and the least (17656 thousand tonnes) was in the year 2003-04. The average

sugarcane production was 31605 thousand tonnes. The yield of sugarcane

93

per hectare showed an erratic change. The yield of sugarcane was 105.30

tonnes in 2000-01, 104.70 tonnes in 2005-06 and 101.20 tonnes in 2009-10.

The average yield of sugarcane was 103.10 tonnes per hectare.

3.4.2. No. of Sugar Mills in Operation, Production of Sugar and Molasses in Tamil Nadu

The number of sugar mills in operation, production of sugar and

molasses in Tamil Nadu for a period of 10 years from 2000-01 to 2009-10

are presented in Table 3.6.

TABLE 3.6

No. of Sugar Mills in Operation, Production of Sugar and

Molasses in Tamil Nadu

Sugar Year

No. of Sugar Mills in

Operation Production (in ‘000 tonnes)

Recovery (% Cane)

Molasses(‘000

tonnes)

2000-01 37 1781 9.64 12.65

2001-02 36 1839 9.61 20.37

2002-03 35 1644 9.88 16.79

2003-04 34 921 9.92 16.02

2004-05 34 1108 9.64 26.86

2005-06 35 2142 9.24 18.16

2006-07 37 2540 9.25 13.63

2007-08 37 2141 9.32 27.21

2008-09 37 1595 9.62 66.63

2009-10 39 1270 8.88 53.99

Average 36 1698 9.50 27.23 Source: Records of the Tamil Nadu Co-operative Sugar Federation

94

The number of sugar mills in operation in Tamil Nadu showed a

progressive increase from 37 in 2000-01 to 39 in 2009-10. The production

of sugar in Tamil Nadu shows an erratic change. The sugar production was

1781 thousand tonnes in 2000-01, 2142 thousand tonnes in 2005-06 and

1270 thousand tonnes in 2009-10. The average sugar production for the

period from 2000-01 to 2009-10 was 1698 thousand tonnes. There was an

erratic change in the recovery of sugar during the period from 2000-01 to

2009-10. The highest recovery (9.88%) was registered in the year 2002-03

and the least recovery (8.88%) was registered in the year 2009-10. The

production of molasses showed an erratic change over the years. The

production of molasses was 12.65 thousand tonnes in 2000-01 and 18.16

thousand tonnes in 2005-06 and 53.99 thousand tonnes in 2009-10.

3.5. Profile of the Select Sugar Mills

A brief description of the select sugar mills is given below.

TABLE 3.7

Year of Commissioning and Capacity of the Select Sugar Mills

Name of the Mill Year of Commissioning

Plant Capacity

(Tone Capacity Day)

Chengalrayan Co-operative Sugar Mills 1978 3000

Prembalur Sugar Mills Limited 1977 3000

Sakthi Sugars Limited 1964 9000

Source: Extracted from the Records of the Mills

95

The year of commissioning and capacity of the select sugar mills are

given in Table 3.7. The Chengalrayan Co-operative Sugar Mills was

commissioned in the year 1978 with 3000 tonne crushing capacity per day.

Prembalur Sugar Mills Limited was established in the year 1964 with 3000

tonne crushing capacity per day. The Sakthi Sugars Limited was

commissioned in the year 1964 with 9000 tonne crushing capacity per day.

TABLE 3.8

Production of Sugar in the Select Sugar Mills (Quintals)

Year

Che

ngal

raya

n C

o-op

erat

ive

Suga

r M

ills

Pera

mba

lur

Suga

r M

ills

Lim

ited

Shak

thi

Suga

rs

Lim

ited

2000-01 890280 425376 2332780

2001-02 449100 426356 1933020

2002-03 464010 370236 1925050

2003-04 316966 134895 1245590

2004-05 384235 275005 2576170

2005-06 434410 439100 3477020

2006-07 707875 476660 3369960

2007-08 464420 291020 4006780

2008-09 361500 302040 4272880

2009-10 303650 195700 5369730

Average 477644 333638 3050890 Source: Extracted from the Records of the Mills

96

The production of sugar in the select sugar mills is given in Table

3.8. The average production of sugar of the Chengalrayan Co-operative

Sugar Mills, Perambalur Sugar Mills Limited and Shakthi Sugars Limited

was 477644 quintals, 333638 quintals and 3050890 quintals respectively.

Over the period of 10 years, the highest production of sugar was (5369730

quintals) in the year 2009-10 in Shakthi Sugars Limited, and the least was

(134895 quintals) in the year 2003-04 in Perambalur Sugar Mills Limited.

TABLE 3.9

Sugarcane Crushed in the Selected Sugar Mills (‘000 tonnes)

Year

Che

ngal

raya

n C

o-op

erat

ive

Suga

r M

ills

Pera

mba

lur

Suga

r M

ills

Lim

ited

Shak

thi

Suga

rs

Lim

ited

2000-01 432380 464830 2316874

2001-02 481818 440362 1914453

2002-03 480574 351479 1472547

2003-04 311786 134327 499480

2004-05 389973 275711 847934

2005-06 518221 479202 2746916

2006-07 806984 558703 3477203

2007-08 526204 350771 4416309

2008-09 370497 332808 2045681

2009-10 350202 233059 2356303

Average 466864 362125 2209370 Source: Extracted from the Records of the Mills

97

Sugarcane crushed in the select sugar mills is given in Table 3.9.

The average sugarcane crushed in the Chengalrayan Co-operative Sugar

Mills, Perambalur Sugar Mills Limited and Shakthi Sugars Limited was

466864 thousand tonnes, 362125 thousand tonnes and 2209370 thousand

tonnes respectively. For the period from 2000-01 to 2009-10, the highest

cane crushed was (4416309 thousand tonnes) in the year 2007-08 in

Shakthi Sugars Limited, and the least was (134327 thousand tonnes) in the

year 2003-04 in Perambalur Sugar Mills Limited.

TABLE 3.10

Recovery of Sugar in the Select Sugar Mills

Year

Che

ngal

raya

n

C

o-op

erat

ive

Suga

r M

ills

Pera

mba

lur

Suga

r M

ills

Lim

ited

Shak

thi

Suga

rs

Lim

ited

2000-01 8.91 10.01 10.04

2001-02 9.27 9.63 10.04

2002-03 9.67 10.10 9.80

2003-04 10.17 9.74 10.15

2004-05 9.85 10.10 9.30

2005-06 8.38 9.17 9.52

2006-07 9.78 8.54 9.56

2007-08 8.20 8.31 9.07

2008-09 7.60 9.05 9.22

2009-10 8.67 8.40 9.47

Average 9.05 9.30 9.61 Source: Extracted from the Records of the Mills

98

The average recovery of sugar in the select sugar mills is given in

Table 3.10. The recovery of sugar in the Chengalrayan Co-operative Sugar

Mills, Perambalur Sugar Mills Limited and Shakthi Sugars Limited was

9.05%, 9.30% and 9.61%. The highest recovery was (10.17%) registered in

the year 2003-04 in Chengalrayan Co-operative Sugar Mills and the least

was (7.60%) registered in the year 2008-09 in Chengalrayan Co-operative

Sugar Mills.

TABLE 3.11

Production of Molasses in the Select Sugar Mills

(‘000 tonnes)

Year

Che

ngal

raya

n C

o-op

erat

ive

Suga

r M

ills

Pera

mba

lur

Suga

r M

ills

Lim

ited

Shak

thi

Suga

rs

Lim

ited

2000-01 20843 19247 52278

2001-02 20245 21225 55028

2002-03 21065 17082 37949

2003-04 13923 5642 23840

2004-05 16842 11607 67800

2005-06 22365 20989 96092

2006-07 36316 27321 98079

2007-08 25363 16732 81733

2008-09 16072 15542 160095

Average 21448 17265 74766 Source: Extracted from the Records of the Mills

99

The production of molasses in the select sugar mills is given in

Table 3.11. The average production of molasses of the Chengalrayan

Co-operative Sugar Mills, Perambalur Sugar Mills Limited and Shakthi

Sugars Limited was 21448 thousand tonnes, 17265 thousand tonnes, and

74766 thousand tonnes respectively. For a period of 10 years, the highest

production of molasses was (160095 thousand tonnes) in the year 2008-09

in Shakthi Sugars Limited, and the least was (5642 thousand tonnes) in the

year 2003-04 in Perambalur Sugar Mills Limited.

TABLE 3.12

Net Profit of the Select Sugar Mills (Rs. in Lakhs)

Year

Che

ngal

raya

n C

o-op

erat

ive

Suga

r M

ills

Pera

mba

lur

Suga

r M

ills

Lim

ited

Shak

thi

Suga

rs

Lim

ited

2000-01 (733.22) (786.08) 323.97

2001-02 (122.55) (821.29) 482.51

2002-03 (1434.05) 1393.18 (5315.77)

2003-04 (52.90) (486.89) (4287.99)

2004-05 575.65 (525.75) 2814.45

2005-06 (828.37) (554.21) 9616.86

2006-07 (1145.53) (1713.85) 3017.97

2007-08 (3514.98) (3494.36) (8713.67)

2008-09 91.00 (1311.76) 12470.72

2009-10 (300.00) 400.00 (12794.37)

Average (746.49) (790.10) (238.53) Source: Extracted from the Records of the Mills

100

The net profit and loss of the select sugar mills is given in Table

3.14. The average net profit and loss of the Chengalrayan Co-operative

Sugar Mills, Perambalur Sugar Mills Limited and Shakthi Sugars Limited

was Rs. (746.49) lakhs, Rs. (790.10) lakhs and Rs. (238.53) lakhs

respectively. It is inferred that the select sugar mills incurred average net

loss over the study period.

3.6. Human Resource Management

Human resource department is established in every organization

under the charge of an executive known as human resource manager. He is

first of all an executive requiring essentially the same executive qualities as

the other executives. Though he is a staff officer in relation to other

departments of the enterprise, he has a line authority to get orders executed

within his department. He performs managerial as well as operative

functions. Since he is a manager, he performs the basic functions of

management like planning, organizing, directing, coordinating, and

controlling. He also performs certain operative functions of recruitment,

selection, training, placement, etc. that the other line managers may entrust

to him.

In recent years, realizing the importance of human resource

management, many organizations have started streamlining their

organization structure by creating the human resource department for

101

performing human resource functions. None of the sugar mills in Tamil Nadu

had separate human resource department. The Special Officer, who is the

immediate superior of the co-operative/government sugar mills and Labour

Welfare Officer in case of private sugar mill, performs human resource

functions such as recruitment, selection, training, fixation of pay, sanction of

increments, promotion, transfer, welfare facilities, maintenance of employee

records, employee grievances, deputation of employees to other organization

and performance appraisal, maintenance of employee discipline and places

amendment proposals to the special bylaws relating to the service conditions of

the employees.

3.7. Welfare Measures

The Labour Investigation Committee preferred to include under

labour welfare “any thing done for intellectual, physical, moral and

economic betterment of the workers, whether by employer, by government

or by other agencies, over and above what is laid down by law, or what is

normally expected on the part of the contracted benefits for which workers

may have bargained.” In India, some welfare measures are compulsory as

per labour laws. It should be noted that expenditure on labour welfare

measures is a profitable investment in the long run as it motivates the

workers for higher productivity. Though welfare services are merely

102

maintenance factors, they are necessary for the health of the organization

since they bear close connection with the productivity of the employees.

The sugar mills are manufacturing organizations and they are

covered under Factories Act 1948. They are providing statutory welfare

measures such as washing facilities, facilities for storing, drying and

clothing, facilities for sitting, first aid appliances, canteens, rest room

facilities, establishment of crèches and appointment of welfare officers.

Non-statutory welfare measures relate to those activities, which are

undertaken voluntarily by employers over and above statutory welfare

measures. These may include housing facility, loans and advances,

educational facilities, recreation facilities, transport facilities, employees’

co-operative store and so on. A brief description of the welfare measures

provided by the select sugar mills to their employees are given below:

Sanitary and Hygiene Facilities

The maintenance of a clean, sanitary and hygiene work environment

is accepted as an important basic welfare amenity. These include toilets and

water for drinking and washing. The Factories Act requires that every

factory must be kept clean and free from effective flowing from any drain

or privy; that a sufficient supply of wholesome drinking water must be

made available at suitable and convenient points; that separate latrine and

urinals for male and female workers must be provided; that spittoons must

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be kept in convenient places in clean and hygienic conditions, and that

adequate, suitable, clean, conveniently accessible and separately screened

washing facilities must be provided for male and female workers. In the

select sugar mills, sufficient numbers of latrines and urinals with separate

accommodation for male and female employees are provided with sufficient

quantity of water over and above the statutory requirements. All latrines and

urinals are lighted, ventilated and maintained in a clean condition. Besides,

the employees are provided with drinking water facilities through pipeline

and sintex tank. These tanks are chlorinated periodically and in some places

drinking water is provided with cold and warm by mechanical means. Also

such points are clearly marked ‘drinking water’ in the regional language.

Canteen

In the select sugar mills, subsidized canteens as per the prescribed

standard have been provided to cater to the needs of all employees

including contract workmen. The canteen committee of the select sugar

mills takes necessary efforts in consultation with top management and

recognized trade unions to improve the standard of foodstuff from time to

time. Further, arrangements are also made to provide variety of foodstuff in

the canteen for the well being of the employees in the special events.

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Rest and Lunch Room Facilities

This amenity provides a prescribed number of seats on the shop floor

and rest rooms or shelters. This facility helps to reduce fatigue, as it enables

a worker to sit down occasionally without any break in his work and

contribute to his comfort and efficiency. The Factories Act provides that,

for the purpose of rest, suitable sitting arrangements have to be made and

maintained for all workers who are obliged to work standing in a factory

with more than 150 workers. Good ventilated rest shelters are provided in

the select sugar mills to the employees to take rest during rest time. This

rest shelters are white washed and maintained properly.

Medical Facilities

Health care for workers will help to reduce the incidence of sickness,

absenteeism among them and increase productivity. The importance of

industrial health care in general has also been emphasized by the

International Labour Organization. In 1931, the Royal Commission on

Labour and the Labour Investigation Committee, 1946 underlined the

necessity for providing basic health and welfare amenities. The importance

of industrial health service is greater in India than elsewhere because of the

adverse effects of unhealthy work environment in many factories and also

due to the incidence of tropical diseases, long hours of work, low wages

causing malnutrition and poor stamina; illness of workers due to ignorance

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and poverty and urban conditions of life which do not agree with migrated

workers. Medical care and cash benefits are provided in the select sugar

mills to their workers for such reasons as sickness, maternity and

disablement and death or injury due to employment. The families of

workers are also covered to some extent. The select sugar mills have well-

equipped dispensary. Medical officers and qualified pharmacists render

medical services to the employees. First aid boxes are kept in each section

and important places with adequate medicines. Apart from the statutory

requirements, the medical officers provide special first-aid training to the

supervisors of the select sugar mills.

Occupational Health Services

These are essentially preventive schemes very common in the

industrially advanced western countries and are gaining in importance and

recognition in large sized undertakings in India. One of the main functions

of these health services is to protect workers against the health hazards

arising out of the work environment. The service includes carrying out of

periodical medical checks of certain categories of workers to detect early

signs of ill-health and prevent the outbreak of serious health complaints.

Section 87 of the Factories Act refers to dangerous occupations and states

that the state government is empowered to make rules in respect of any or

all classes of factories in which any operation exposes persons to serious

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risks of bodily, injury, poisoning or disease. The medical officers of the

select sugar mills carryout periodical medical checks to detect early signs of

ill-health of the employees.

Safety of the Employees

The select sugar mills made genuine efforts to provide a fair work

place to the employees. Employees are advised not to take chances either on

the job or off. All health and safety measures prescribed are strictly

followed. In case of any mishap or accident while on work, employees

should immediately bring it to the attention of the superiors. Unsafe

conditions jeopardizing safety of employees should be reported

immediately to the superiors in the select sugar mills. Each sugar mill has

its own security procedures and the employees are advised to strictly adhere

to clear information regarding security procedures followed in each mill.

Crèche

The Factories Act lays down that in any factory with more than 50

women workers; a crèche should be provided and maintained for children

less than six years in a clean and sanitary condition. The Act states that the

crèche should be under the care of women trained in child care and should

have adequate accommodation, lighting and ventilation. The state

government is empowered to make rules in respect of standards, equipment

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and facilities. For the benefit of the female employees, a crèche has been

provided within the mill premises in the select sugar mills.

Housing

Housing is an integral part of worker's welfare. Recommendation of

the 1LO states that housing should be a matter of national policy. Both the

Industrial Commission (1918) and the Royal Commission (1913) realized

the importance and necessity of improving housing conditions of industrial

workers and made recommendations for the purpose. The employees of the

select sugar mills are given accommodation on rent in the housing colony.

About 50% of the employees eligible for quarter accommodation have been

provided accommodation in their housing colony.

Transport Facilities

Transport facilities to and from the place of work are given to

workers as one of the desirable welfare amenities. This facility is gaining in

popularity because of growing urbanization, location of industries, transport

loads and traffic congestion. The main purpose of this amenity is to enable

the employees of surrounding villages to commute without any difficulty to

the nearby towns and cities, adequate numbers of buses are arranged

through Tamil Nadu State Transport Corporation/private bus operators.

Besides, the employees of the Sakthi Sugars and Prembalur Sugar Mills

Limited are provided a transport facility which is operated by the mills.

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Recreation and Cultural Facilities

Recreation is a leisure time activity which is a healthy diversion and

a spare-time occupation. It refreshes an individual mentally, lessens the

monotony and drudgery of his every day work, and develops his personality

on a wholesome basis. The workmen, staff and officers have been provided

with clubs, which are functioning in the select sugar mills, which conducts

regular cultural programmes. These clubs are financed by the management.

The managing committee elected in every year manages the clubs in the

select sugar mills. The clubs celebrate their Annual Day by conducting

various sports and games and organize picnics and excursions to their

members.

Educational Facilities

Education facilities form another important welfare programme for

industrial workers. Education would improve the quality of the labour force,

for it would provide opportunities for a proper training for the acquisition of

skills and techniques which are essential for workers in an industry and

which will enable them to adjust themselves to their particular way of life,

and to enable them to acquire broader values of life, personally, industrially

and socially. The need and importance of such educational facilities in India

have been accepted and emphasized by various commissions and

committees, such as Indian Industrial Commission (1958) the Royal

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Commission on Labour (193l), the National Commission on Labour

(1 966), the Malaviya Committee on Labour Welfare (1969), etc. In order to

enhance the employees’ career, the select sugar mills provide financial

assistance to their employees to impart approved educational and training

courses. If the course has a direct application to the employees’ work, he

can be reimbursed such cost and granted special leave for the examination.

Training and Development

Human resource development is a set of interrelated activities, by

which human potentialities are assessed, selectively upgraded and

appropriately deployed for achievement of envisioned goals that foster

human dignity. Organizations and individuals should develop and progress

simultaneously for their survival and attainment of mutual goals. Every

management has to train its employees in order to develop the organization.

Human resource development, in its turn, not solely but heavily depends

upon employee training and management development. Generally the

training needs of employees in the select sugar mills are determined on the

basis of job requirements. The technical employees are deputed to attend

the training programmes conducted by Sugar Research Institute, Vellore;

National Sugar Institute, Kanpur; and Vasantdada Sugar Institute, Pune.

The non-technical employees are attending the training programmes

conducted by various outside institutions. Most of the employees in the

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select sugar mills are deputed during off-season to attend the training

programmes without affecting the normal work of the organization.

Leave Travel Allowance

Not only to offer relaxation but also to provide a broader vision to

the employees of the select sugar mills and their wards this tempting

scheme is offered. The employees are eligible to get leave travel allowance

in each year. This scheme is a pleasant one to all employees in the select

sugar mills and their wards to enjoy and gain knowledge along with the

pleasant experience.

Loans and Advances

Employees of the select sugar mills are eligible to draw an advance

for genuine emergency situations like medical treatment, etc. on providing

required proofs. Employees will be eligible for advance only if there is no

debit balance. The amount permissible will be three times the take home

pay and it will be repayable by not exceeding five installments. Employees

are eligible to draw festival advance once in a year. A second advance can

be drawn only after the earlier festival advance is fully repaid.

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Bonus and Incentives

Employees of the select sugar mills shall be entitled to bonus in due

course in accordance with the provisions of the Payment of Bonus Act,

1965. Moreover, the employees of the select sugar mills are eligible for

production incentives as per the decision of the management announced

from time to time.

Co-operative and Saving Facilities

In the context of spiraling prices and the rising cost of living, the

importance of fair price shops and supply schemes cannot be

overemphasized. Though these supply schemes and shops can be operated

by the employer himself, it is the co-operative method which has been

found to be desirable and has been recommended again and again by

various committees and conventions. The co-operative credit societies also

help the worker to save for unforeseen domestic crises. For the benefit of

employees, in the select sugar mills, Co-operative Store is being run.

Rations, provisions, etc. are available in the co-operative store. Further, Co-

operative Credit and Thrift Society have been formed in the select sugar

mills to render financial assistance to the employees and to encourage

savings habits.

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Personal Counseling

By means of this service workers of the select sugar mills are able to

receive advice and counsel on some of the personnel and sometimes also on

personal problems inside and outside their place of work. Counseling helps

the workers of the select sugar mills to overcome his anxiety and troubles.

Distress Relief and Cash Benefits

There are many non-statutory welfare amenities available to

industrial workers, depending on the importance the employer attaches to

these benefits. One is an ex-gratis payment called distress relief and cash

benefits paid in case of death, injury, sickness, marriage or as a felicitation

grant. It is a gift made by the employer to his workers. Rs.4000/- is being

provided to the employees as funeral expenses if death occurs while in

service in the select sugar mills.

Social Security Measures

Employees feel insecure for many reasons such as inadequate wages,

lay off and retrenchments, accidents and injuries in the course of

employment, occupational hazards, sickness, old age, total or partial

disability, etc. These factors cause anxiety and fear in their minds. Thus, the

measures adopted to provide such protection to employees are known as

social security measures. These measures protect workers and their families

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through various benefits such as compensation, maternity, sickness and

other benefits.

Under Workmen’s Compensation Act 1923, compensation is payable

by the select sugar mills to workmen for all personal injuries caused to them

by accident arising out of and in the course of his employment which

disable him for more than three days. If the workman dies, the

compensation is to be paid to his dependents. Under Employee State

Insurance Act 1948, an insured person in the select sugar mills is entitled to

receive benefits such as medical benefit, sickness benefit, maternity benefit,

disablement benefit, dependents benefit, funeral benefit, etc. The Employee

Provident Funds and Miscellaneous Provisions Act, 1952 has made

schemes for three types of benefits viz, provident fund, family person and

deposit linked insurance. Under the Payment of Gratuity Act, 1962 gratuity

is payable to an employee of the sugar mill on the termination of his

employment after he has rendered continuous service for not less then five

years. The completion of continuous service of five years is, however, not

necessary where the termination of the employment is due to death or

disablement. The Maternity Benefits Act, 1961 applies to women in

factories, mines and other establishments. In the select sugar mills, married

women employees having not more than 2 living children are eligible for

maternity leave as per the provisions of the Maternity Benefit Act, 1961.

Employees Family Pension Scheme, 1971 seeks to provide some monetary

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relief to the family members of employees in the select sugar mills, who die

in service, that is, before superannuation. In the event of an employee's

death his family gets pension on a graded scale depending on the

employee's last salary grade.

3.8. Summary

In this chapter, an attempt has been made to review the labour

welfare measures of the select sugar mills in Tamil Nadu. None of the sugar

mills in Tamil Nadu had separate human resource department. In the co-

operative/government sugar mills, Special Officer is the competent

authority and performs various human resource functions. Since the sugar

mills are manufacturing organizations they are covered under Factories Act

1948, the sugar mills providing statutory welfare measures such as washing

facilities, facilities for storing, drying and clothing, facilities for sitting, first

aid appliances, canteens, rest room facilities, establishment of crèches and

appointment of welfare officers. The non-statutory welfare measures of the

select sugar mills include housing facility, loans and advances, educational

facilities, recreation facilities, transport facilities, employees’ co-operative

store and so on.