Tensions mount over dues at Natems Sugar Factory

Tirupati: The prolonged failure of Natems Sugar Factory in Nindra to settle outstanding payments to local sugarcane farmers and factory workers has reached a boiling point, leading to widespread protests. For five years, farmers and workers have been demanding their rightful dues, but the factory management has failed to provide any resolution.

The factory owes over Rs100 crore, including Rs 60 crore to a finance company, Rs 35 crore to sugarcane farmers and approximately Rs 7 crore to its workers. This significant debt has led to growing frustrations, particularly among the farmer community, who have been at the forefront of protests and demonstrations.

The recent decision by a finance company to auction the factory’s assets in a bid to recover its own dues has further ignited the situation. In a press release, the company announced its intentions to auction off the factory’s assets, a move that has been met with outrage from the farmers. They argue that it is illegal to proceed with an auction when payments to them are still pending.

On Tuesday, farmers staged a protest in front of the factory, vehemently opposing the auction plan and demanding immediate intervention from officials. They criticised the authorities for failing to secure a stay order or halt the auction process, accusing them of negligence. The farmers, under the leadership of Nethaji Sugarcane Farmers’ Association president Adinarayana Reddy and secretary Srinivasulu Yadav, made it clear that they would not agree to the auction unless all outstanding dues are settled.

“There can be no auction until our dues are cleared,” they said, with strong backing from the farming community. When they meet, Babitha, deputy general manager of the finance company, assured the farmers that discussions with the district collector would take place to address their concerns, including pending payments to workers. Following this assurance, the farmers paused their protest but emphasised that demonstrations would resume if no justice is done.

The workers, many of whom have been with the factory since its early days, are also suffering the consequences. Union leaders Kannaiah and Sampath Kumar said they all joined the factory in 1994 and worked hard for years to develop this factory. Now they became jobless and struggling to survive. “It’s been five years and our families are suffering. The government must step in to help us,” they said.