Diversion of sugarcane for illicit liquor may ruin Nayagarh Sugar Complex

The diversion of sugarcane for manufacturing of illicit liquor in Nayagarh district is causing an annual revenue loss of about Rs 20 crore to the state exchequer.

This has also led to shortage of cane for crushing in the Nayagarh Sugar Complex Ltd (NSCL) threatening its operations in the future. The industry was on its path of recovery after being sick for years.

The problem is caused due to the functioning of 240 kerosene driven illegal power crushers and country crushers which are encouraging diversion of about 80 percent of the sugarcane produced in Nayagarh district.

Sources said, about 3 lakh tonne of sugarcane was produced in the district last fiscal and out of this NSCL expected to crush 2.5 lakh tonne. However, the sugar factory could crush only 42,000 tonnes as the rest of the sugarcane crop found their way to these illegal crushers.

Lack of enforcement of a notification issued by the state agriculture department by the district administration, non-functioning of the task force constituted by Nayagarh collector to stop illegal crushing of sugarcane and political patronisation of illegal crushers has resulted in diversion of sugarcane for Jaggery purposes.

It may be noted, the Nayagarh collector, on 1st January, 2009, had constituted task forces at the block level with the Tehsildars of the concerned blocks, junior agricultural officer and OICs of the local police stations as members to oversee enforcement of the notification and stop operation of illegal crushers in their locality.

Similarly, a district level task force included district agriculture officer, general manager, DIC (Nayagarh), additional commercial tax officer, inspector-in-charge (IIC) or Officer-in charge (OIC) of the local police station and the executive director of the NSCL. Though there were some actions by the squads in the initial stage, it was not sustained allowing the illegal crushers a operate freely. Sources said, about 2.5 lakh tonne of sugarcane was diverted for production of Jaggery which was not for human consumption and only used for preparation of liquor.