Why do some co-operatives work but not others? A comparative analysis of sugar co-operatives in India
Attwood, D.M.; Baviskar, B.S.
Economic and Political Weekly 22(26): A38-A56
1987
ISSN/ISBN: 0012-9976 Document Number: 311410
The cooperative sugar factories of Maharashtra, India, are presented as remarkably successful examples of local development initiative. A comparative sociological analysis is made of these cooperatives in order to pinpoint the organizational factors which are crucial for their success. A comparative analysis of privately owned sugar factories in India reveals a basic weakness in the cane supply relationship between the private factories and the sugarcane growers, a weakness which has been overcome by the cooperative factories. As a result, the cooperatives can operate more efficiently, technically and economically, than the private factories. In addition, although the cooperatives receive some subsidies from the government, much larger subsidies are directed to the private factories, at the expense of the more efficient cooperatives. The success of the cooperative sugar factories depends not only on a superior cane supply system but also on their ability to generate a stable alliance among the small, medium and large cane growers who are the shareholders. It is concluded that the likely success or failure of cooperative organizations can be predicted by analyses which compare cooperatives with other types of enterprises, taking into account; (1) the technical and organizational requirements of the production process; (2) the distribution of interests and possibilities for a stable alliance among members; and (3) the regional agrarian systems which determine the natural and social environments of the cooperatives.