Farmers in the district are in a fix not knowing whether to grow sugarcane this year with the Nizam Deccan Sugars Limited (NDSL) not giving them any assurance on the purchase.
The mill has been facing several problems and the State government, that had announced that it would take over the mill, has not done anything in this regard yet.
The NDSL has arrears of Rs. 10.5 crore to be paid to the farmers.
The district administration came to the rescue of the mill in purchasing the crop stocked in godowns with the help the Civil Supplies Department. So far, Rs. 4 crore was released to purchase sugarcane and in the second instalment, the same amount was reportedly released on Wednesday.
“No farmer has taken up sugarcane cultivation so far and we cannot go ahead with our plans unless the mill assures us of purchasing the crop. We hope that the government takes over the mill before this month-end. If not, we have to opt for alternative crops like maize, sunflower, soyabean and paddy,” said V. Nagi Reddy, a farmer and general secretary of NDSL Parirakshana Samithi.
Pandu Ranga Reddy, another farmer from Zaheerabad, said farmers who have been accustomed to growing sugarcane in this area may not go for alternative crops. They might wait for the government to act even though they have not gotten any assurance from the Trident Sugars, which has to pay arrears of Rs. 40 crore to farmers.
The factory has been signing agreements with the farmers for the purchase of sugarcane, but the area of cultivation may go down given the adverse market conditions.
Ganapathi Sugars at Fasalwadi, who has been signing contracts with the farmers, also has to pay arrears of Rs. 3 crore to farmers.
“Agreements are not being singed by farmers who fall under NDSL area as its fate is yet to be decided by the government. A five-member committee has been appointed by the government to look into the matter,” said Sugarcane Assistant Commissioner Ch. Venakat Ravi.
“Trident Sugars is eligible to get soft loan from the Union Government to clear their arrears and the process is on,” said Joint Collector P. Venkataram Reddy.
