Unlawful protests, govt apathy and much more: This mill in Punjab CM Bhagwant Mann’s constituency is all set to shut down
Lack of support from the Punjab government, alleged unlawful activities by the farmer unions and inadequate raw materials are the three main reasons why the management of the once thriving Bhagwanpura Dhuri Sugar Mill has decided to shut down operations forever.
“The decision to shut down, while seemingly sudden, is the culmination of years of relentless struggle, both financially and socially, endured by the mill owners,” said Kunal Yadav, Chairman and Managing Director of the mill.
The management, however, has assured the farmers of clearing all their pending dues and is even committed to procure sugarcane crops sown in the pre-notice period.
On February 28 this year, the mill management had put up a notice saying it will not operate from next year so farmers should not sow sugarcane. However, the sowing of sugarcane on 3,000 acre was already done by October-November last year. In fact, farmers of Sangrur district alone had sown sugarcane on 1,850 acre.
While talking with The Indian Express, Yadav said, “The mill is facing severe losses, amounting to more than Rs 100 crore as of now. As constant appeals for support, both from the current and the previous regimes, could not yield any result, we decided to shut down operations. It was a tough decision and when the government did not pay heed to us, we approached the court for relief.”
Meanwhile, sources in the Punjab government said a meeting with the management of the Bhagwanpura Sugar Mill has been scheduled in Chandigarh Saturday.
Sources also added that just a day before the meeting, the management issued a statement about the closure plans.
Meanwhile, talking with The Indian Express, Sangrur deputy commissioner Jitendra Jorwal said, “The government is committed to procure every sugarcane crop in the area and adequate arrangements are in place for the same.”
However, Yadav said, “Ever since the AAP government has come to power, we have been seeking appointments with Chief Minister Bhagwant Mann in order to apprise him of the situation and seek the government’s support. But we could not get a single appointment.”
Yadav said, “We will procure the sugarcane sown in the pre-notice period and will send it to the other mills and subsequently pay the farmers.”
He further said, “As of now, we are yet to pay Rs 13 crore which we are clearing partly by putting payments in the accounts of the farmers on a monthly basis.”
The Bhagwanpura Sugar Mill has been in existence since the early 1950s, under different owners. It caters to farmers in Sangrur, Malerkotla, Barnala and Patiala in Punjab and some farmers of Haryana. Yadav acquired the mill in 2005.
Till 2017-18, the area under sugarcane was around 20,000 acre, which kept reducing over the years. Farmers in the past have rued delayed payments as the reason for reducing the area under sugarcane while mill management cited unlawful activities by a few elements, leading to a shortage in raw materials.
Reason behind closure
Yadav said, “Things were fine but issues started three-four years back due to the unlawful activities by the farmer unions. They started to gherao our employees, humiliate them and on some occasions, the protestors even climbed atop the boilers. There was an absolute lack of support from the government in maintaining law and order.”
The protests by the farmers under the leadership of Harjit Bugra, the president of the Ganna Sangharsh Committee, had started in 2019 due to pending payments to the farmers.
In 2019, and then in 2022, the government had issued auction notices to the mill to recover the payments. However, the biddings never took place as every time, an agreement to release the payments would get signed.
The mill management believes that individuals causing disruptions around the mill are not genuine farmers but individuals with ulterior motives operating under the guise of being farmers.
The management added that many of their employees have tendered their resignations because of the constant harassment by the anti-social elements.
In a statement, the sugar mill management also expressed that the closure of the mill impacts both the management and the farming community. The statement read, “We reiterate our willingness to engage in constructive discussions with the government. We implore them to acknowledge the challenges faced by the industry and address the rising activities of these disruptive elements. We hope this statement provides a more comprehensive understanding of the circumstances surrounding the closure of Dhuri Sugar Mill. Our intent is to ensure transparency and counter the targeted propaganda aimed at tarnishing the mill’s and its owner’s reputation.”
