The NDA government’s exim policy and the TRS’ electoral promise created a ray of hope over revival of the Nizamabad Cooperative Sugar Factory, a lone unit in the cooperative sector in entire Telangana.
Established in 1964 on a sprawling 94 acre land just 8 km away from the district headquarters, the factory has remained closed since 2006 due to the negligence of successive governments. In a way it can be said that the factory was neglected in the wake of new economic policies adopted by the State and Centre.
Absence of remunerative price in the market, increase in input costs, impediments in institutional credit creation, obsolete machinery and labour problems could be attributed to the closure of the factory. Started with 1,200 employees and per day crushing capacity of 1,250 tonnes of cane, the factory has now been downsized to 42 permanent and 10 seasonal employees besides 200 non-muster roll employees.
In its heydays, it had 21,800 shareholding farmers who used to cultivate sugarcane in 40,000 hectares in Navipet, Nandipet, Makloor, Renjal, Yedapally, Nizamabad, Dichpally and Darpally mandals. The factory and its surroundings were buzzing with activity with trucks coming and going and farmers and workers thronging kiosks, which flourished like anything.
The factory used to support the livelihood of at least 15,000 people directly or indirectly. With the government’s sugar policy turning unfavorable over a period of time, a number of farmers gave up sugarcane cultivation and even those who cultivated took the cane to other factories. Thus, slowly the Nizamabad Cooperative Sugar Factory lost its glory.
The factory employees’ JAC convener Reddy Srinivas expressed the hope that the factory would get revamped as the Modi government in its recent budget pronounced duty exemptions on sugar and imposed restrictions on imports. Besides, the State government had a positive view on reviving it. “If the old machinery is changed and Rs. 5 crore budget is allocated it will function well,” he feels.
Endorsing his view, the factory Managing Director John Victor said that he had sent a report to the government on requirements for its reopening. “Already I have information that the Agriculture Minister and MLAs are coming to the factory for review in a few days. We cleared salaries to the employees and workers up to May,” he added.
Officials and farmers are awaiting the government decision on this sick factory. Once a clear decision is out, farmers are ready to take up cane cultivation again. However, only a few farmers are reportedly showing interest in the wake of price fluctuations.
The factory protection committee president K. Sai Reddy said that earlier several representations were given to governments. In the last 15 days, two representations were made to Chief Minister K. Chandrasekhar Rao, who is said to be serious on the factory’s future. “I hope good days are ahead for this factory,” he said.
