Suudalagunta Sugars Given Nov 30 Deadline to Clear Farmers’ Dues

Tirupati:The Tirupati district administration has set November 30 as the deadline for the Suudalagunta Sugars to clear the dues to sugarcane farmers.

It directed the management to submit a detailed repayment roadmap within a week and a notarised affidavit committing itself to the payment schedule.

At a meeting on Monday, district collector Venkateswar told the management that verbal assurances would not be accepted. He sought a written plan specifying the amount and date of each installment. The management must complete the payment in two installments by November 30.

In response, the management said it was examining the possibility of paying `15 crore as the first installment and another `15 crore as the second installment. Efforts were on to mobilise the required funds and the first payment could be made by the end of October, it said.

The collector directed the management to submit a unit-wise statement of dues payable to farmers, the harvesting workers and other categories for the Srikalahasti and Podalakur units.

The management said it was pursuing the sale of the Podalakur sugar plant and was in discussions with prospective buyers over its machinery and land. The proceeds from the sale would be used first to clear farmers’ dues after obtaining the required bank approvals.

It also agreed that if the dues could not be cleared within the 60 day period, the management would sell 50 acres of land in Nellore and unencumbered land in Srikalahasti and use the proceeds for the repayment.

The management said `2 crore had already been paid as an advance to the bank and efforts were under way to obtain the necessary approvals for the sale process.

The collector said the long-pending dues of farmers should be given priority and that the company’s financial and asset related problems should not delay their repayment.