Revival of Amadalavalasa sugar factory sought

Opposition parties, NGOs say it will spur economic activity in the area

Amadalavalasa Sugar factory has lost its sheen with its closure in 2013.

Opposition parties and a few NGOs joined hands for the revival of the Amadalavalasa Co-operative Sugar factory which was closed in 2003.

Accumulated losses of ₹30 crore made the government to issue orders for its closure. Sugarcane was grown in 80,000 acres when Amadalavalasa sugar factory was in operation. Now, the crop is being grown only in 25,000 acres.

The factory, established in 1956, was the lifeline for thousands of farmers and workers in the backward area. Parivartana Trust, which has done a study over the benefits of eco-friendly industries, decided to take up agitations in a phased manner for the revival.

Signature campaign

Trust president Chintada Ravikumar sought cooperation of all the sections of the society to draw the attention of the government. “We planned one lakh signature campaign for the reopening of the factory. It can prevent migration of farmers and labourers from Amadalavalasa constituency. The revival can spur economic and agriculture activity in several mandals,” he added.

Left parties and Lok Satta Party also urged the government to take immediate steps for its revival since Chief Minister N. Chandrababu Naidu had promised it during the 2014 election campaign. “Sugarcane growing has come down drastically in the district after the closure of the factory. The government can overcome all the legal tangles if it pays attention. It should also extend financial assistance initially,” said Lok Satta Party State vice-president Panchadi Rambabu.

The farmers are also hopeful that they would get remunerative price for the produce if factory is in their vicinity. At present, they are selling sugarcane to private factories located in other places, including Vizianagaram and Visakhapatnam districts. Currently, they get around ₹2,000 to ₹2,500 per quintal of sugarcane. They hoped that they can get more price if the factory begins its operations.

The officials indicated that revival was not so easy since the issue had been in courts. The government has to pay huge amount to a private company which bought the factory for ₹8 crore.

The company reportedly sought around ₹56 crore as compensation to hand over the factory to the government. “The issue was brought to the notice of the Chief Minister. He can announce a revival package to benefit Amadalavalasa constituency,” said an official.