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Ch. R.S. Sarma

Visakhapatnam , Jan. 1

THE three co-operative sugar factories in Visakhapatnam district have started crushing this month and are hopeful of improving on the recovery rate this season, as the climatic conditions have been more favourable.

It is noteworthy that in the backdrop of the State Government taking a decision to phased privatisation of the ailing, or sick, co-operative sugar units, permission has been granted only to the three co-operative units in the district to collect cane and take up crushing.

The loss-making factories in Vizianagaram, Srikakulam and other districts have been instructed by the Government to stop crushing this season and the farmers in the respective zones have been permitted to divert the cane to the nearest sugar factories.

As a result, cane cultivation has come down substantially in many of those areas. In the case of Chodavaram, Thandava and Etikoppaka factories in the district, the Government has been more considerate. Etikoppaka factory could achieve recovery rate of 10.36 per cent last season, Thandava 9 per cent and Chodavaram 8 per cent.

According to the officials of the Agriculture Department here, there may be considerable improvement in recovery rate due to timely rainfall and favourable climate.

However, even if there were to be some improvement in the recovery rate, it is doubtful whether these factories can come out of the crisis, as they are saddled with stocks, and the glut in the sugar market is continuing. The factories are unable to liquidate the stocks and clear the arrears to cane farmers.

The State Government has taken a decision to privatise the sick co-operative factories and already some factories such as Hanuman Sugars in Krishna district and Palacole factory in West Godavari have gone into private hands. (The Vijayawada-based Laila group has acquired the factories).

The West Godavari Co-operative Sugar factory at Bhimadolu was sold to Andhra Sugars during 2003 for Rs 36 crore. It is certain, therefore, that sooner or later the three co-operative factories in the district will go into private hands if the Telugu Desam comes back to power.

However, in spite of these vicissitudes in the market and political uncertainties, cane cultivation in the district may not be as much affected in the process as in the other districts.

The biggest jaggery market in the State is situated at Anakapalle in the district and some of the surplus cane may be absorbed by the jaggery market if any of these factories goes under.

"It is the policy of the present Government to push co-operative factories into losses with its ill-conceived policies and offer them to the private entrepreneurs on a platter," alleges Mr N. Satya Venkateswara Sarma, the Organising Secretary of the AP Sugarcane Farmers' Association. "We are trying our best to stall the process as long as possible and do justice to farmers."

More Stories on : Sugar | Andhra Pradesh

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