Aska, Ganjam : Considered Asia’s first sugar industry, the Aska Cooperative Sugar Industries Limited in Ganjam district, Odisha is in dire straits awaiting revival measures. Riddled with mounting debts, reduced sugarcane production, and operational inefficiencies, the mill established in 1956 and operational since 1963, has turned into a liability. While its employees are worried about their future, the sugarcane farmers too are in two minds whether to continue cultivating the crop or look for other options.
The mill was once the lifeline of thousands of workers who toiled to process over 1,90,000 tons of sugarcane annually and providing at least six months of employment to hundreds of workers. However, in the last few years, particularly from 2012, the sugarcane processing plummeted to a mere 49,000 tons, and the industry now operates for barely two months a year. It is because of the long time needed for sugarcane crop to be harvested that the mill functions for a few months depending on the supply.
Disappointed, the sugarcane farmers who once reaped heavy profits have now turned to other crops. Add to it, the challenges they face in getting returns, labor shortages, and the threat of wild animals rampaging their farmlands.
According to Dr. Sushant Kumar Panda, Managing Director of the mill, the industry has been burdened with debts totaling Rs 22 crores from the Sugar Development Fund and Rs 42 crores in unpaid water taxes. Monthly installments of Rs 50 lakhs to repay these debts have further strained operations.
In a recent high-level meeting chaired by the Chief Minister, a detailed plan was laid out to revive the sugar mill. Key proposals included:
1. Incentives for Farmers: To encourage sugarcane cultivation, the government is considering providing farmers with a subsidy of Rs 1,000 per ton of sugarcane.
2. Modernization and Expansion: A Rs 50-crore fund has been proposed for upgrading outdated infrastructure, alongside plans to establish a Rs 200-crore ethanol plant, a new bottling unit, and a cardboard manufacturing plant to diversify income streams.
3. Debt Relief: Requests have been made to waive outstanding loans and taxes, similar to relief provided in other states.
4. Price Adjustments: The bottling unit, which currently earns a profit of only 75 paisa per bottle of country liquor priced at Rs 60, has proposed increasing the price to ₹70 to boost revenues.
Despite these ambitious plans, Panda said all the steps are welcome but the efforts from the government must be continuous. "Interim relief will not sustain a factory of this size. The need of the hour is concerted efforts and continuous support," he said.
Farmers’ Plight
Farmers, the backbone of the sugar industry, are not so enthused about the revival plan. Though they expressed hope that the subsidies can play a big role, they are not sure if the crop can help them sustain in the long run due to challenges. They said sugarcane farming is far less lucrative than other crops like paddy.
“Growing sugarcane takes 10 months of hard labor, while paddy requires only three to four months. Without proper subsidies and timely payment, why would we continue sugarcane farming?” asked Bishwesar Pradhan, a local farmer.
Another farmer cites reasons like unavailability of fertiliser and pesticides at cheaper rates. "We do not even get paid by the mill on time. Many of our farmers have stopped cultivating sugarcane altogether, which is why there is a drop in supply to the mill," he stated.
Operational Woes