The Bhagwanpura Dhuri Sugar Mill, located in the constituency of Punjab Chief Minister Bhagwant Mann, is on the brink of permanent closure due to a confluence of factors, including a lack of support from the Punjab government, alleged unlawful activities by farmer unions, and insufficient raw materials. The decision to cease operations is the culmination of years of financial and social challenges faced by the mill’s management.
Kunal Yadav, the managing director of the mill, explained, “The decision to shut down, though appearing abrupt, is the result of years of relentless struggle experienced by the mill owners, both financially and socially.” The mill is owned by D P Yadav, a businessman based in Uttar Pradesh. In February of this year, the mill management issued a notice, stating its intention to halt operations from the following year, advising farmers not to sow sugarcane. However, by October-November of the previous year, sugarcane had already been sown across 3,000 acres, with 1,850 acres in Sangrur district alone.
Kunal Yadav elaborated on the mill’s financial difficulties, citing losses exceeding Rs 100 crore at present. Despite repeated appeals for support from both the current and previous administrations, the decision to shut down became inevitable. When their calls for assistance went unanswered, they resorted to seeking relief through legal means. Yadav mentioned, “Since the AAP government assumed power, we have been attempting to secure appointments with Chief Minister Bhagwant Mann to apprise him of the situation and request government support. Unfortunately, we could not secure a single appointment, even though the sugar mill falls within Mann’s Dhuri constituency.”
The mill management has pledged to settle all outstanding dues with the farmers and is committed to procuring sugarcane crops sown before the notice period. Payments are being made to the farmers on a monthly basis to address the pending Rs 13 crore. The Bhagwanpura Sugar Mill has been operating since the early 1950s under various owners, serving farmers in Sangrur, Malerkotla, Barnala, Patiala in Punjab, and some from Haryana. D P Yadav acquired the mill in 1996.
The area under sugarcane cultivation, which was approximately 20,000 acres until 2017-18, has gradually reduced over the years. While farmers attributed the decrease to delayed payments, the mill management pointed to unlawful activities by certain groups as causing a shortage of raw materials.
Kunal Yadav emphasized, “Issues arose three to four years ago due to unlawful activities by farmer unions. They began to besiege our employees, subjecting them to humiliation, and at times, protestors even scaled the boilers. The government’s lack of support in maintaining law and order was
glaring.” Protests led by Harjit Bugra, the president of the Ganna Sangharsh Committee, commenced in 2019 due to pending payments to farmers. In 2019 and 2022, the government issued auction notices to recover payments, but no actual auctions took place as agreements for payment release were repeatedly reached.The mill management alleges that some disruptors around the mill are not genuine farmers but individuals with ulterior motives posing as farmers.
In a statement, the sugar mill management expressed that the mill’s closure affects both the management and the farming community. They reiterated their willingness to engage in constructive discussions with the government and urged authorities to recognize the challenges faced by the industry and address disruptive elements. Their aim is to ensure transparency and counter any efforts to tarnish the mill’s reputation and that of its owner.