Naraingarh Sugar Mills may close operations within week due to low sugarcane supply

Ambala: The crushing season at Naraingarh Sugar Mills is expected to conclude operations within a week due to a shortfall in sugarcane supply from farmers, reported Tribune India.

Although the mill has issued its initial notice urging farmers to deliver their remaining sugarcane by tomorrow, officials clarified that this action was merely intended to incentivize farmers to offload their stocks. However, they acknowledged the likelihood of halting crushing operations within a week due to the insufficient supply.

With the mill receiving approximately 20,000 quintals of sugarcane daily against the required 40,000 quintals, authorities deemed it economically unfeasible to sustain operations.

Despite being a private sugar mill, it has been under the supervision of the Haryana Government since 2019.

Rajiv Sharma, a spokesman for the Bhartiya Kisan Union (Charuni) and a sugarcane farmer from Naraingarh, highlighted concerns over pending dues owed to farmers by the sugar mills. Sharma stated, ” Farmers’ payments have been outstanding with the sugar mills for months, attributed to their precarious financial situation. Many farmers receive their dues only after the subsequent crushing season commences. Despite the state’s advised price (SAP) of Rs 386 per quintal for the season, crushers are offering Rs 400-425 per quintal, payable in cash. Consequently, some farmers have opted to divert a portion of their produce to crushers rather than delivering it to the sugar mills.”

Fears among farmers regarding the possible closure of the mills and the subsequent delay in payment have heightened since news of the attachment of mill properties emerged. Sharma urged the government to increase the SAP of sugarcane and ensure dues are cleared within 14 days to maintain farmer confidence in delivering produce to the mills.

Last year, approximately 48.50 lakh quintals of sugarcane were crushed, with this year’s target set at around 50 lakh quintals. However, with only 40 lakh quintals crushed thus far, the season may conclude after processing around 42 lakh quintals, compared to last year’s April conclusion.

Yash Jaluka, Naraingarh SDM and CEO/executive director of the sugar mills cited several factors contributing to the shortfall, including farmer concerns, untimely rains disrupting operations, and diversion of sugarcane to crushers. Efforts are underway to engage with affected farmers and villages to address issues before the next season.

LEAVE A REPLY

Please enter your comment!
Please enter your name here