Sugarcane farmers under Tummapala, Govada, Etikoppaka and Tandava sugar factories are turning debt-ridden as arrears up to Rs.43 crore piled during the last two years, former minister Dadi Veerabhadra Rao has said.
Though farmers had to be paid within two weeks of delivering the produce and with interest beyond that period, the Tummapala factory owed Rs.2 crore, Govada Rs.24 crore, Etikoppaka Rs.9.6 crore and Tandava Rs.2.3 crore, the former Minister said in a statement. The arrears included transport subsidy and purchase tax.
Mr. Rao said the state-owned apex co-operative bank APCOB had sought mortgage of properties worth Rs.120 crore to lend Rs.2 crore to the Tummapala factory. Though the documents had been deposited the bank was insisting on mortgage, Mr. Rao said.
He demanded that the government should stand guarantee to the bank and get the loan to the factory so as to pay the arrears to farmers.
While Rs.2,300 a ton had to be paid as per the Central government’s direction, private factories were paying between Rs.1400 and Rs.1800, he said.
He demanded that the other three sugar factories should take cane from farmers under Tummapala factory and pay the stipulated price.
Besides farmers’ dues, the Tummapala factory had to pay Rs.2.7 crore towards salaries and Rs.4 crore PF to retired employees, Mr. Rao said.
The former minister faulted the dilution of the zone system and one lakh tonnes of sugarcane being diverted to private sugar factories in the neighbouring districts.
