Ambur Cooperative Sugar Factory was started with share capital assistance from the government. Over the years the cooperative generated sufficient capital and managed to repay of the government's share. In fact it was in a position to repay the entire government's share, but this was not done as the government wanted to retain the power of nominating the Board. The nominated Board and the deputationists from the government, as chief executive of the cooperative sugar factory, created an environment where the growers felt alienated, with the result that they formed a separate farmers' organization and started an agitation against the cooperative.