VIZIANAGARAM: At a time when the government of Andhra Pradesh is preparing the ground to liquidate Sri Vijayarama Gajapathi Co-operative Sugar Factory (Bhimasingi Sugar Factory), several farmers’ associations led by the Sugar Factory Protection Committee (Parirakshana Samiti) launched a protest demanding that the government halt the liquidation.
At least 16,000 farmers across 18 mandals in Vizianagaram and neighbouring Visakhapatnam districts established the factory in 1969.
Over 30,000 acres of sugarcane is being cultivated in this region alone to cater to the needs of the factory. The factory holds approximately Rs 40 crore in share capital, comprising around Rs 32 crore in government equity alongside substantial farmer equity and land contributions.
Now, the factory has been expanded to as many as 75 acres of land in a prime location near the Visakhapatnam-Raipur Greenfield Highway.
The previous YSRCP government shut down the operations of Sri Vijayarama Gajapathi Cooperative Sugars Ltd in the name of modernisation in 2019-20.
However, the modernisation proposal was stalled, leaving farmers in distress and forcing them to sell their produce to E.I.D. - Parry (India) Limited by bearing transportation charges, as it was nearly 100 km away from Jami mandal.
Now, the TDP-led NDA coalition government is preparing the ground to liquidate three sugar factories, including Bhimasingi Sugar Factory, due to severe financial losses, heavy farmer payment dues, outdated machinery, and a sharp drop in local sugarcane cultivation.
As a part of this, Chief Minister Nara Chandrababu Naidu directed the officials to take necessary measures to liquidate the 70-acre site rather than modernising and reviving production in the recent Cabinet meeting.
Speaking to TNIE, district general secretary of the Rythu Sangham Buddharaju Rambabu condemned the decision to hand over the factory assets to APIIC as undemocratic and against the spirit of the Co-operative Act.
He said, “I appeal to the government to withdraw their decision for liquidation of the sugar factory. Otherwise, we will intensify this protest at the state level in collaboration with sugarcane farmers, shareholders and employees.”