Agro processing is a large sector that covers activities such as agriculture, horticulture, and plantation. It also includes other industries that use agriculture inputs for manufacturing of edible products. Sugar Industry is one such major player in Agro processing sector. Greater delegation and competitiveness in agro based industries require new forms of co-ordination between farmers and other agencies to increase quantity within catchment area. During the entire production season, to maximize sugar production with minimum overheads a good network of all the elements is required to be in place. Sugar industry faces a lot of problems such as lack of co ordination, interruptions in supply of raw material due to natural calamities and many other such problems. To overcome these problems industry needs to have a proper supply chain management. Sugar industry particularly in Maharashtra is very popular in the cooperative sector. It is contributing to nearly @ 40% of total national production of sugar. The tonnage figures are @ 50-70 lakh tons of sugar every year[2].