Meanwhile, other factories in the Marathwada region have come to Vidarbha to lure cane growers with higher prices compelling the local factories to hike its normal rates.
Pioneer in sugar industries Varna Group of western Maharashtra, which took over sick sugar factories in Yavatmal district on lease, is said to have decided to close down them for various reasons, sources have said.
According to sources, close to the district deputy registrar of Co-Op Societies in Yavatmal, the Varna Group has submitted a proposal to wind up their agreement with the Bodegaon-based Jai Kisan Co-Operative Sugar Factory they have taken to run it on lease in 2006.
It is pertinent to note that the Varna Group, headed by former minister Vinay Kore, has taken over the management of the Bodegaon-based Jai Kisan Sahakari Sakhar Karkhana in 2006 with an agreement to run it for six years on lease.
In 2006, Varna Group come forward to run sick sugar cane factories in the region on rental basis and an agreement was signed for six years followed by the rejuvenating the factory to save the debt-ridden sugar cane growers.
During the three years, farmers, coming under its jurisdiction, were not getting profits. But all their hopes were shattered due to scanty rainfall and the withering of the standing cane crops. The factory could not function to its full capacity due to shortage of cane causing great loss to the management.
Meanwhile, other factories in the Marathwada region have come to Vidarbha to lure cane growers with higher prices compelling the local factories to hike its normal rates.
Besides, even when they tried to match their rates with the outside players, there was scarcity of cane for the factory.
The Varna has also taken up the Gunj-based Shri Sudhakarrao Naik Co-Operative Sugar Factory (Pushpavati Sugar Factory) to run it on lease. The condition is not different there too.
They have now sent in a proposal to the commissioner of Sugar Factories of Amravati to permit them to cancel the agreement and wind up the business of Jai Kisan Factory.
However, the deputy registrar NP Yeglewad, who is also the liquidator of the factory, is on the opinion that the management of Varna can not take any step to breach the six-year agreement as per the existing law and they have to run the factory at any cost.
Attempts to contact Varna Group for more details could not be succeed. The cane growers appeared to be worried about their fate.
This year also there is scanty rainfall in the Darwha tehsil of the district where the sugarcane growers under the jurisdiction of Jai Kisan factory are facing great hardships.
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