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Sugar production is the primary business among farmers of the western Maharashtra region. The cooperative movement for the sugar industry started in the 1960s in Maharashtra with the announcement of 12 places in the state where sugar factories could be established. The Bombay state government announced a capital share of one million rupees to establish sugar factories at these potential 12 places. A central committee was formed by Bombay State Cooperative Bank under the chairmanship of Dhananjayrao Gadgil.
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History
Asia's first cooperative sugar factory was established at Pravaranagar in the Ahmednagar District of the then Bombay state in 1950 by Vithalrao Vikhe Patil and economist Dhananjayrao Gadgil. They factory called Pravara]] Sahakari Sakhar Karkhana Ltd had majority ownership by the local farmers
Present scenario
At present there are 173 cooperative sugar factories in operation, employing 165,000 people. Almost 800,000 people are engaged in the harvesting and transportation of sugarcane to factories from the fields. The sugar industry provides annual revenue of over ₹22 billion to the government. Due to the cooperative sugar industry, allied businesses including milk cooperatives, fertilizer supply, and irrigation systems have flourished. The presence of this industry has led to development of rural places, from which the sugarcane is drawn to factories, including an improved road network, transportation facilities, medical facilities, education facilities, and banking. Over the last sixty years, the local sugar mills have played a crucial part in encouraging rural political participation and as a stepping stone for aspiring politicians. In Maharashtra there is a large number of politicians belonging to the Congress party or NCP with ties to sugar cooperatives from their respective local areas. Unfortunately, mismanagement and manipulation of the cooperative principles has made a number of these operations inefficient.