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Surat: Farmers protest over ‘privatisation’ of sugar mill

Hundreds of farmers staged a protest outside Junnar Sugars in Surat’s Mandvi taluka, opposing the factory’s privatisation. Formerly Mandvi Sugar Cooperative, the mill was sold to Junnar Sugars in 2019 after debts led to its auction. Protesters, led by Sandeep Sharma, allege the factory began sugarcane crushing without a valid license and vowed to continue their agitation.

Hundreds of farmers connected with the Mandvi Sugar Bachao Farmers’ Committee staged a dharna outside the Junnar Sugars Limited in Mandvi taluka of Surat district after the factory authorities began crushing sugarcane on the premises after purchasing it from the farmers of neighbouring Tapi district.

Earlier known as Mandvi Sugar Cooperative, the factory was renamed Junnar Sugars in 2019 after the owners of the latter won the auction for the premises situated at Bodhan village. The protesting farmers said they were against privatisation of the factory.

On learning that Junnar Sugars had started production in the factory, farmers, labour contractors and transport vehicle owners on Tuesday staged a dharna outside the main gate of the premises.

The Mandvi Sugar Bachavo Samiti president Sandeep Sharma said, “We are protesting as we have come to know that Junnar Sugars has been running the boiler for the last few days. They have purchased sugarcane from farmers of neighbouring Tapi district and have started crushing activities to manufacture sugar. The sugar mill did not have IEM (Industrial Entrepreneur Memorandum) – a licence to run the factory. So, how could they run such a factory?”

Sharma further alleged that the sugar mill has illegally obtained power connection.

Authorities at Junnar Sugars could not be contacted for comment on the allegations.

Sharma said, “We are protesting against privatisation of the Mandvi sugar mills, which has been sold by the consortium of banks to Junnar Sugars Limited. Last year, we had made representations to two ministers but no action has been taken against Junnar Sugars till date.”

Sharma said the farmers will wait for a few days before resuming their protest.

According to sources, Mandvi Sugar cooperative society started operations in 2015 but was shut down in 2017 due to mismanagement, resulting in losses and heavy debts.

Mandvi sugar mills had over 55,000 members and the mill owed them around Rs 23.87 crore, said Sharma. “Besides, it had taken Rs 20 crore from the state government and Rs 94.10 crore as loan amount from various banks, led by Union Bank of India, for construction and running of the mill,” he added.

In 2019, following the nod from Surat district collector, the consortium carried out the auction of properties of Mandvi Sugar for debt recovery under SARFAESI (The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest) Act, 2002. Junnar Sugars Limited authorities won the auction of movable and immovable properties of Mandvi Sugar.

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Source : The Indian Express

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