Economic transformation through sugar factories: A critical study of Kabirdham, Chhattisgarh

Indian sugar industry is a key player in the socio-economic development of rural areas and act as a major contributor to the India’s economic growth. Reports have witnessed the rural transformation through the establishment of sugar factories. With the increase in the population of the world the demand of the sugar and its by-products have been increased. This led to the increase of sugar factories in the world. Keeping in the view the role of sugar factories in the rural development, the present study was conducted to examine the economic transformation through establishment of sugar factories in Kabidham, Chhattisgarh. This study employs a quantitative approach. The current study builds on earlier research by employing empirical analysis and a quantitative investigation. The economic development in relation to establishment of sugar factories were calculated in terms of income, employment, livelihood and agriculture. Data was collected by applying closed-end-questions in a self-structured questionnaire. The data were tabulated and statistically analyzed by t-Test and analyses of variance (ANOVA) at (p≤0.05) level of significance. Results show that the income of farmers from the services, labour, pension, honorarium and subsidiary occupation has also been enhanced after the setup of sugar factories in Kabirdham, CG. Overall total income from land has been increased after the establishment of sugar factories. With the increase in the income the pattern of expenditure by the farmers of Kabirdham has been significantly (p≤0.05) changed like land development, land purchase, bank deposits, share purchase, agriculture machines/implements, furniture etc. The sugar factories have significantly (p≤0.05) increased the employment in Kabirdham, CG. A positive change in the cultivation of cash crop like sugarcane (from 0.10% to 12.60%), soyabean (from 33.8% to 40.2%), seasamun (from 2.9% to 5.4%) and mustard (from 3.1% to 6.8%) has been reported after the sugar factories were established in Kabirdham. The overall results of the present study suggest that the sugar factories of Kabirdham, CG has been a nucleus of economic development in the area, which has advanced the living standards of the rural people.