Sugar unit in Vizianagaram agrees to clear ryots’ dues within two months

Parvathipuram MLA, Collector take the initiative

After prolonged discussions with Vizianagaram Collector M. Hari Jawaharlal on Friday, NCS Sugars Private Limited agreed to clear dues amounting to ₹ 9.62 crore to sugarcane farmers within two months. Due to reported losses, the company could not make payments to nearly 10,000 farmers who have been agitating for their due.

In this background, Parvathipuram MLA A. Joga Rao, Dr. Jawaharlal and Joint Collector G.C. Kishore Kumar held a high-level meeting here. Mr. Joga Rao said the farmers were in financial distress due to the lockdown.

NCS Sugars Managing Director Narayanam Srinivas told them that the company had promptly responded to the suggestions made earlier and auctioned 62.47 acres of vacant land to generate funds. He said that ₹5.07 crore was readily available for the disbursement which would be completed very soon.

Mr. Srinivas said that the company had to clear dues to the tune of ₹2.58 crore to the GST and Excise departments also and it would be ready to divert the funds for the benefit of farmers if the government gave the go-ahead.

Dr. Jawaharlal said payment of dues to farmers should be the top priority and the dues to the government could be adjusted later. Mr. Srinivas said there was no assured sugarcane for the factory as farmers were allowed to sell the produce to factories located in Srikakulm district.

‘Diversion reason for losses’

Around 2.79 lakh tonnes of sugarcane was crushed in 2018-19 but it had come down to 1.28 lakh tonnes in 2019-20 with the diversion of sugarcane to the neighbouring district.

It was said to be the reason for accumulated losses and delay in payments. The Collector promised to look into the issue and ensure financial viability for the company from the next crushing season onwards.