Crushing has been halted at the NCS sugar factory at Latchaipeta near Bobbili in Vizianagaram district for the past four days following an agitation by the farmers over the notices received by them from commercial banks seeking them to repay loans.
The unit has a crushing capacity of 6,000 tonnes per day and there is also a co-generation unit in the factory with a capacity of 20 MW. The agitation by the farmers began on Monday, as they started protesting against the notices. They said they had not taken the loans from the two commercial banks.
The leaders of AP Rythu Sangham, the farmers’ association, alleged that the management had taken loans to the tune of Rs 21 crore from the two banks in the name of farmers and they had unofficially learnt that the amount may be over Rs 70 crore from different banks. The farmers wanted the management to come clean on the total loan amount taken in the name of farmers and to give a written undertaking that it would pay the amounts. They said the farmers should not face any harassment from the banks.
Further, the farmers' association wanted immediate payment of arrears of Rs 4 crore due to farmers by the management and hiking of cane price from the present Rs 2,300 per tonne to Rs 3,000.
Several rounds of talks have been held so far, but to no avail. Farmers are insisting that they will not allow crushing unless the demands are met by the management.
sarma.rs@thehindu.co.in