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National Geographer, Vol.XLVIII, No. 1 + 2 (Jan-June, July-Dec. 2013), Pages 95-108

Sick Sugar Mills of Eastern Uttar Pradesh: A Survey Regarding Causes of Sickness

Anil Kumar Tiwari and V. N. Sharma
Banaras Hindu University, Varanasi

Abstract

Industrial sickness is the major problem in modern industrial era which is increasing in such huge extent that many new factories are being added day by day. High magnitude to industrial sickness is a serious problem for all times especially in sugar industry in India. It has become a substance of serious distress for entrepreneurs as not only, money blocked up in quite a lot of sick factories but also worthless the national growth. About 18 sugar mills are sick in eastern Uttar Pradesh due to different problems. A survey of all sick mills has been conducted to explore the causes of sickness. This paper is an attempt to analyse the causes of sickness of sugar industry in eastern Uttar Pradesh based on the field observation.

Key words: Sick Unit, Sickness, Mismanagement, Outdated Technology, Unfavourable Policy

INTRODUCTION

      Industrial sickness is a universal phenomenon; over the years the problem of the industrial sickness has grown not only in developing but also in developed countries. In India, the problem of sickness in industries has become very acute. It adversely affects the health of the industrial sector in particular and the economy of the country in general. Generally, sickness of Industries relates to uneconomic functioning of factories. Thus, any factory may not work with own full capacity, may not gain optimum profit, may not pay fair wages and dividends and may face many problems in a continuous manner, i.e., financial, marketing and other. Thus, sick factories are harmful to employees, entrepreneurs and entire economic system. Industrial sickness relates to only manufacturing units and not relates to other type of business activities. Industrial sickness affects to large scale, small scale and cottage units. There are a number of definitions of industrial sickness based on different norms such as generation of surplus, liquidity, solvency, amount and period of irregularities in operation etc. In order to have a clear idea about the different aspects of industrial sickness the various definitions given by various authorities are mentioned briefly.

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