Home/India/MarketsArticle
Markets

North Andhra farmers abandon sugarcane as factories shut down

In North Andhra, farmers plan to quit sugarcane due to factory closures, impacting Vizianagaram, Parvatipuram, and Srikakulam. This threatens local economies, prompting leaders to seek government help to revive factories.

BRIC Team
By BRIC Team · BRIC.TV
Published Sep 20, 2026 · 2 min read · 9 views
North Andhra farmers abandon sugarcane as factories shut down

Key Takeaways

  • Farmers in North Andhra to abandon sugarcane cultivation next year
  • Closure of sugar factories prompts shift to other crops
  • Economic activity in villages threatened by factory closures
  • Local leaders urge government intervention to revive sugar factories

Farmers in North Andhra are bracing for a big change next year. Sugarcane cultivation, once a staple of the region's agriculture, is set to be abandoned. This shift comes in the wake of three sugar factories closing, with a fourth expected to follow in the districts of Vizianagaram, Parvatipuram, and Srikakulam.

Sugarcane farming has plummeted in Vizianagaram district. It once covered 35,000 acres but has now shrunk to just 3,500 acres. Srikakulam district tells a similar story, with its sugarcane cultivation area dwindling from 50,000 acres to 5,000 acres. Farmers are now considering switching to other crops in the upcoming Rabi season as the closures force them to adapt.

The decline in sugarcane farming is due to various issues. There's not enough sugarcane for crushing, persistent financial losses, and a lack of modern technology for ethanol production. The Sri Vijayarama Gajapathi Cooperative Sugar Factory in Bhimasingi, Vizianagaram district, stopped operations back in 2019, though it had been around since 1960. Another cooperative factory in Latchayyapeta, Parvatipuram district, which began its work in 1995, ceased crushing activities five years ago due to ongoing financial struggles.

The Amadalavalasa sugar factory in Srikakulam district has been non-operational since 2003, despite being a hot topic during election campaigns. Efforts to revive it have repeatedly hit a wall. Meanwhile, a private factory near Sankili, run by E. I. D. Parry India Limited, has been a lifeline for local farmers for the past two decades. But now, the company has warned it might stop crushing from the next season.

Community Efforts and Government Appeals

Local leaders are not sitting idle. They are pushing for government intervention in response to these closures. Buditi Appala Naidu, President of the Sankili Chakkera Parisrama Parirakshana Samithi, has handed a memorandum to Vizianagaram Joint Collector S. Sedhu Madhavan. The memo calls for measures to protect the factory, highlighting the thousands of families that depend on it for employment.

Similarly, Lok Satta Party State President Bhisetti Babji has been in talks with Minister for MSME Kondapalli Srinivas and Collector S. Ramsundar Reddy. He argues for the modernization of the Bhimasingi sugar factory, stressing that the closure of agro-based industries will bring economic activity in hundreds of surrounding villages to a halt. Babji insists on government action to revive all sugar factories in the region.

“Closure of agro-based industries will stop economic activity in hundreds of villages located in and around the factory. In the absence of other major industries, the government should take steps for the revival of all sugar factories, ” said Mr. Babji.
#Andhra Pradesh

Related Articles

France's wine production faces challenges amid climate change

France's wine production faces challenges amid climate change

France's wine production is facing significant challenges due to climate change. Winemakers like Florent Latour are exploring new markets to counteract declining yields and consumption.

Daniel Brown

Sep 20, 20263 views
Lula announces welfare increase and free weight-loss jabs ahead of election

Lula announces welfare increase and free weight-loss jabs ahead of election

Ahead of the presidential election, Brazil's President Lula da Silva announced a 15% welfare increase and free weight-loss injections. Critics call it politically timed. Opponent Flávio Bolsonaro criticized the move, while Lula claims it's an inflation adjustment.

Rahul Sharma

Sep 20, 202610 views
Modi asserts India fulfilled Paris pledges, highlights emissions responsibility

Modi asserts India fulfilled Paris pledges, highlights emissions responsibility

Prime Minister Narendra Modi claimed India met all Paris climate pledges early, speaking at a conference in New Delhi. He highlighted that developing nations are often wrongly blamed for emissions, noting India's per capita emissions are below the global average.

Daniel Brown

Sep 19, 202641 views
EIL in Talks with Saudi Arabia and UAE for Oil Infrastructure Projects

EIL in Talks with Saudi Arabia and UAE for Oil Infrastructure Projects

Engineers India Ltd is in discussions with Saudi Arabia and the UAE for oil projects to bypass the Strait of Hormuz. Iran-related conflicts have disrupted shipping, prompting Gulf states to seek new routes, potentially boosting EIL's future prospects.

Shagun Pandey

Sep 19, 202651 views
Tata Sons board reappoints Chandrasekaran amid listing controversy

Tata Sons board reappoints Chandrasekaran amid listing controversy

Tata Sons' board reappointed N Chandrasekaran as chairman, clashing with Tata Trusts, its main shareholder, over governance and potential public listing issues.

Ramesh Gupta

Sep 19, 202652 views
JP Morgan unable to forecast oil prices amid US-Iran conflict

JP Morgan unable to forecast oil prices amid US-Iran conflict

JP Morgan admits difficulty predicting oil prices amid US-Iran conflict, as assumptions about economic limits are tested. Oil prices over $100, geopolitical tensions, and Trump's unpredictable actions add to the uncertainty. Global supply disruptions complicate forecasts further.

Shagun Pandey

Sep 18, 202672 views