Andhra Pradesh Sugar Factories Face Bankruptcy: Political Neglect, Corruption Blamed

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News18•05-02-2026, 06:46
Andhra Pradesh Sugar Factories Face Bankruptcy: Political Neglect, Corruption Blamed
- •Sugar factories in Andhra Pradesh, particularly in the Anakapalli district, are in dire straits, heading towards bankruptcy due to decades of political neglect and corruption.
- •Once flourishing cooperative factories like Anakapalli (Tummapala), Tandava, and Etikoppaka, which generated significant revenue, are now crippled by political interference and mismanagement.
- •The Tummapala Sugar Factory, saved by farmers' investments in 1959, was unique for its German technology and attached distillery, providing employment and producing spirit for medical use.
- •Increased political dominance led to misuse of funds, neglect of modernization, and failure to implement profitable ancillary units like ethanol and co-generation, unlike private factories.
- •Farmers face non-payment of sugarcane arrears, and workers suffer from unpaid wages, with 36 deaths reported by 2018 due to financial hardship, while factory assets are being auctioned.
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