Sugar mills sell-off to benefit farmers

The cane farmers of Bhimadolu in West Godavari district and Jampani in Guntur district are likely to reap the benefits of privatisation of the two loss-making cooperative units "� West Godavari Cooperative Sugar Factory and NVR Cooperative Sugar Factory Limited. Andhra Sugars Limited (ASL) and Krebs Bio Chemicals (KBC), the preferred bidders for these two units, have already entered into sale and purchase agreements (SPA) for the same.

With the finalisation of the sale deed paving the way for the privatisation of these two units, the cane farmers in these regions are likely to get higher and prompt payments for their cane supplies to the factories which are to be taken over by the preferred bidders.

ASL, the Tanuku-based sugar major, has already made the full and final payment of Rs 36 crore for the West Godavari sugar unit, and signed a SPA for the same.

KBL, the Hyderabad-based pharma player, has also paid the full and final payment of Rs 18.09 crore for purchasing the NVR Cooperative Sugar Factory Limited.

The representatives of the two companies entered into formal sale and purchase agreements with the respective cooperative societies here recently. KBL has already taken possession of the plant at Jampani, and plans to initiate crushing operations soon.

The cane farmers in these districts hope that they too would get higher price from the mills. Their hopes are based on the experiences of cane farmers of Palair and Hanuman Junction where exist the already privatised sugar units.

After privatisation, the cane farmers in those regions are getting remunerative prices, and the payments are being made within the stipulated 14-day period.