VIJAYAWADA: When the government is so focused on bringing in more industries to the state and claims to encourage food processing sector, why is it that existing sugar factories in the state continue to be neglected, which is an agro-based industry providing employment to scores of people?

This is the poser from the sugarcane growers in the state, which is witnessing a decline in sugar production. The area of cultivation has come down to 96,000 hectares in the last cropping season, thereby depleting the sugarcane supplied to the factories, which in turn has reduced the sugar production.

Unable to run the factories, suffering losses due to low supply of sugarcane for crushing, several sugar factories are scaling down their operations and some have to shut shop. There are a total of 29 factories including private ones and majority of them are suffering losses.

With no separate irrigation policy for the sugarcane cultivation in the state, the water guzzling crop has few takers every year. “State government puts the blame for the decrease in sugarcane crop extent and production on the scarcity of the rains. But, it is the government and its lack of interest in coming out with a proper policy for sugarcane cultivation and sugar production in the state, which is to blame,” says expert on sugarcane cultivation and production Y Keshava Rao.

Keshava Rao, who is also vice-president of Andhra Pradesh Cheruku Rythula Sangham., said given the different levels of water availability in different regions, government has to announce a scientifically based policy on irrigating the crop. If it comes out with such a policy, it can get needed funds from Central Government, which every year, allocates hundreds of crore rupees for Sugar Development Fund.

He said government also needs to permit and extend financial aid to the sugar factories to set up power plants (cogeneration from bagasse). KCP Sugar Factory in Krishna district had produced Rs 13 crore worth surplus power, while Chodavaram Sugar Factory had produced Rs 3 crore worth surplus power, which in turn can be sold back to the state government. In Tamil Nadu, similar policy was successfully adopted.