Sahakari Sakkare Karakhane, the oldest sugar producing cooperative in Bidar in Karnataka ailing with bad debts and ineffective management would not be able to crush sugarcane this year. The farmers of the district are worried about it, reports Hindu.
The other reasons responsible for the crisis are fall in total output of sugarcane, the resultant high prices, lack of funds to clean and maintain machinery, settle dues of farmers and pay laborers.
The sugar cooperative factory was started in 1961-62 with the money raised from farmers. The unit has the optimum crushing capacity of 3, 500 tonnes per day. It has incurred an accumulated loss of Rs. 195 crore.