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 Modernization and Expansion: A Rs 50-crore fund has been proposed for upgrading outdated infrastructure, alongside plans to establish a Rs 200-crore ethanol plant, a new bottling unit, and a cardboard manufacturing plant to diversify income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
Coming to the mill workers, they are wary of delayed payment of salary apart from other issues. "We suffer as much as outsourced workers. Neither do we get salary on time nor any other benefits," rues an employee Sudarsan Bhoi.
“The lack of timely payments demoralizes the workforce. With nearly 500 employees, the industry struggles to maintain smooth operations,” lamented Raghab Singh, a senior member of the District Sugarcane Farmers’ Association.
Meanwhile, the distillery unit at the mill has been non-operational this year, and the bottling plant runs year-round but at reduced profitability.
Lessons from Other States
The Odisha government has formed a task force comprising senior officials from agriculture, finance, cooperatives, and other departments to study successful sugar mills in states like Maharashtra and Uttar Pradesh. These states boast robust sugar industries which mostly depend on government-backed incentives and innovative farming practices.
Rabindra Kumar Panda, President of the Aska Cooperative Sugar Mill, said there is more to the issue than meets the eye. "Strategies are developed and plans made but the main workforce is never involved in decision making process. Be it the farmers or workers, who have been there, and done it all. But they are left out in the decision making process. The task force members may not understand the local issues as much as those who are directly working for the mill. The task force should visit Aska and interact with our farmers to grasp the ground realities. A one-size-fits-all approach won’t work,” he said. Currently, around 500 employees are working in the mill, he added.
Revival Hopes: Ethanol and Employment
A major highlight of the revival plan is the establishment of an ethanol plant. Ethanol production, seen as a lucrative avenue, could transform the mill’s fortunes while creating good employment opportunities in the region. Even proposals to establish a second bottling plant and a cardboard manufacturing unit are expected to generate more jobs and increase revenue streams.
Restoring Glory: Challenges and Opportunities
While the government’s intervention brings hope, challenges abound. The success of the revival plan hinges on several factors:
• Farmer Participation: Without active farmer engagement and support, the mill cannot sustain operations. Timely subsidies and payments are crucial.
• Debt Management: Waiving or restructuring debts is vital for financial stability.
• Infrastructure Overhaul: Modernizing machinery and diversifying operations will require efficient implementation of the proposed budget.
• Market Dynamics: Competitive pricing for sugar and related products must be ensured to maintain profitability.
As the sugarcane harvesting season begins in January, all eyes are on the state government and the mill’s management. The revival of the Aska Cooperative Sugar Mill is not just about economic recovery; it is a matter of restoring the pride of Ganjam district and securing the livelihoods of thousands.
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