Officials have prepared to auction the five-decade-old Jeypore Sugar Company Limited, also known as Chagallu Sugars Limited, on Monday (January 23), in West Godavari distict. The company has reportedly been running in losses for the last few years. About 700 workers lost their livelihood with the closure of the sugarcane unit.
The Revenue officials seized the factory on January 20 as the company had failed to pay dues to sugarcane farmers and wages to the workers for the last few months.
Velagapudi Ramakrishna, a native of Bellamvaripalem village in Guntur district, started Jeypore Sugar Company (VVS Sugars) Limited at Chagallu in 1961, with an installed capacity of 850 Tonnes Per Day (TPD) crushing. At present the company was crushing 8,500 TPD.
The government had allotted 156 villages in 13 mandals in West Godavari and Seetanagaram mandal in East Godavari district under the Sugarcane Act, 1961 to the sugar factory. The total cultivable area under the factory zone was 1.16 lakh hectares.
Revenue Recovery Act
Farmers from Kovvur, Chagallu, Nidadavole, Devarapalli, Jangareddygudem, Koyyalagudem and other mandals had been supplying sugarcane to the factory for the last five decades. The company takes up of crushing of cane from November to March every year. However, the activity came to a halt as the farmers had stopped supplying cane due to non-payment of dues for the last few months.
The company had reportedly not been paying salaries to the workers for the last three months. A few farmers approached the High Court, which ordered seizure of the company under the A.P. Revenue Recovery Act (RR Act), 1864.
Speaking to The Hindu on Sunday, West Godavari District Collector Katamneni Bhaskar said as per the directions of the High Court, the factory was seized and efforts were being made to do justice to the farmers.
“We will auction Chagallu Sugar Factory on January 23, and with the amount we earned through public sale, the district administration will clear dues to the farmers,” Mr. Bhaskar said.
Velagapudi Ramakrishna Jeypore Sugars and Distilleries Staff and Workers Union president Neerukonda Venkatakrishna Rao blamed the local administration for the crisis.
“The union members are expecting good days ahead,” said Mr. Venkatakrishna Rao, who has been working in the factory for the last 30 years.
“We hope that the management will protect our company. We request Ramakrishna’s family members to come forward to take up the factory and save our families,” said union general secretary Madala Srinivasa Rao.
Joint Commissioner of Labour (JCL) B. Ajay said that efforts were being made to hold discussions with the factory management and the union leaders to save the unit.
