Despite assurance, Phagwara sugar mill still shut

Deepkamal Kaur

Jalandhar, October 10

Even as Agriculture Minister Kuldeep Singh Dhaliwal last week had announced that the state government would ensure that Golden Sandhar Mill in Phagwara will become operational in the coming cane crushing season, the issue has become a headache for the authorities concerned.

The oldest mill, which dates back to 1933, has about Rs 250 crore liabilities towards farmers, banks and the government. This includes cane dues worth Rs 50 crore towards farmers, Rs 92 crore siphoned off under the Kisan Credit Card scheme, Rs 80 crore as bank limits and Rs 15 crore on the account of the GST.

The fiscal position of the mill is such that no official wants to get into the mess and make it operational. Even the private millers, who had earlier shown little interest, have reportedly backed out now.

On the other hand, as many as 3,000 farmers, who are attached with this mill, have been cultivating sugarcane on 22,000 acres and are expecting 70 lakh quintals of yield. They are adamant that the mill must get functional. These farmers are from the Nawanshahr, Hoshiarpur, Nakodar, Goraya, Phillaur and Phagwara areas.

The authorities have floated a plan to divert Nawanshahr farmers to Bhogpur mill; Phillaur, Goraya and

Phagwara farmers to Ludhiana; and Hoshiarpur farmers to Buttar Siviyan or Gurdaspur mills.

“It is completely unviable for us to migrate to any other mill. The Bhogpur mill is not operating, owing to a turbine blast. The one in Dhuri is also facing a payment dispute. All other mills are already getting more cane than their capacity. If the Phagwara mill does not get operational, others will have to extend their crushing season to June 10 instead of April 10, which is practically not feasible. The farmers who are attached with the Phagwara mill will have to shell out at least Rs 4 crore more only on transportation to make repeated rounds to far off places, which is again out of question for us,” said Kirpal Singh Musapur, senior vice-president, BKU-Doaba.

He further said, “We have been after the government since May, pressing it to look for a workable solution.

We have been holding symbolic protests but still there seems to be no headway. We want the mill to resume operations at all costs.”

Mill has over Rs 250 crore pending dues

• The mill was started by Narang Group but was later taken over by Oswal Group. Later, SAD leader close to the Badals Jarnail Singh Wahid and his NRI partner, Sukhbir Sandhar, took over the mill. Wahid, however, stepped out a few years ago
• The functioning of the mill went haywire after 1973. The biggest downfall started when the mill bought the Bhuna sugar mill in Fatehabad for Rs 40 crore
• As of today, the mill has over Rs 250 crore pending dues. Mill owners have taken loans to the tune of
• Rs 92 crore on the account of the Kisan Credit Card scheme in the name of farmers. It is yet to pay Rs 50 crore dues to cane farmers