Farmers demand revival of sugar factories in Vizianagaram

A view of the Bhimasingi sugar factory in Jami mandal of Vizianagaram district. Operations were halted five years ago.

The closure of the Sri Vijayarama Gajapathi Cooperative Sugar factory at Bhimasingi of Jami mandal and the NCS Sugars Limited factory at Sithanagaram has significantly impacted the livelihood of many farmers and locals in Vizianagaram district.

The Sri Vijayarama Gajapathi Sugar factory, established in 1960 at Bhimasingi, ceased operations in 2020 due to frequent machinery breakdowns. A government-appointed technical committee recommended modernisation to ensure profitability for the company. However, the then YSRCP government shelved the modernisation proposal, leaving farmers in distress.

Meanwhile, the privately run NCS Sugars factory halted operations due to increasing financial losses. Later the company sold a portion of its land to clear the debts and pay farmers who had supplied sugarcane.

With both the sugar factories closed, the next nearest processing facility was the Sankili sugar factory. However, the high cost involved in transporting the sugarcane to Sankili saw many farmers shift to growing other crops as an alternative.

Loksatta Party State President Bhisetti Babji recently urged the government to ensure the modernisation of the sugar factories by including the production of ethanol and other byproducts and to ensure better rates for sugarcane supplied to these companies.

Bhimasingi Sugar factory workers’ association leaders U. Srinu, Rothu Kanakaraju have urged the government to clear the pending Provident Fund dues and other employee benefits to those who lost their livelihood with the closure of the factory. 

Secretary Rythu Coolie Sangham of Andhra Pradesh, Dantuluri Varma said: The sugarcane cultivation in the district has plummeted from 70,000 acres to just 7,000 acres with the closure of the factories.” Hundreds of farmers have been appealing to the State government to revive these factories and restore their livelihoods.

Published - June 13, 2025 08:15 pm IST