Goa government disburses Rs 73 crore in financial aid after sanjivani sugar factory closure

Panaji: Since the closure of the Sanjivani Co-operative Sugar Factory in 2021, the Goa government has provided over Rs 73 crore in financial aid to sugarcane farmers and factory workers, Agriculture Director Sandeep Fol Dessai announced during a press conference at the Department of Agriculture headquarters, reported Daijiworld.com.

Out of the total aid, more than Rs 46.89 crore has been distributed among over 600 sugarcane farmers, while Rs 26.46 crore was given as honorariums to 210 factory workers.

Fol Dessai said that nearly 75% of sugarcane farmers have shifted to cultivating other crops in the last five years. “After the factory shut down, the government introduced several support measures to reduce the hardships faced by farmers and workers,” he said.

To address the fallout from the factory’s closure, the state government formed a committee in 2021 under the leadership of former MP Narendra Sawaikar. Chief Minister Pramod Sawant attended the first meeting of the committee and pledged the government’s full support to the farming community.

A five-year relief plan titled ‘Special Financial Assistance for Sugarcane Producers’ was launched, with compensation based on the average sugarcane production of each farmer. The aid distributed over the years is as follows:

Rs 11.83 crore to 734 farmers in 2020-21

Rs 10.28 crore to 690 farmers in 2021-22

Rs 8.86 crore to 669 farmers in 2022-23

Rs 8.33 crore to 682 farmers in 2023-24

Rs 7.56 crore to 697 farmers in 2024-25

Fol Dessai also noted that Goa farmers were given the option to send their sugarcane to the Laila Sugar Factory in Khanapur, Karnataka. “There were no restrictions from the Goa government, so farmers could continue to earn some income from their crops,” he added.

On the question of the factory’s future, Fol Dessai confirmed that the Agriculture Department is in charge of its revival. Although a Request for Qualification (RFQ) was issued to invite private investment for setting up a new sugar plant, no parties expressed interest. “We plan to revise the RFQ and reissue it soon to try and attract potential investors,” he said.

While government aid has provided temporary relief, the long-term outlook remains uncertain. With a majority of sugarcane farmers moving to other crops and no concrete plans yet for the factory’s revival, the future of Goa’s sugarcane sector hangs in the balance.

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