JOIN USMySugar to hold AGM today
Mysore Sugar Company (MySugar), which has been listed as a sick-industry, is holding its annual general body meeting (AGM) on March 12, after a gap of three years.
The 77th AGM is expected to witness heated discussions as it is still incurring loss — the accumulated loss has increased from Rs 34.45 lakh in 2001 to Rs 347.34 crore in 2010 — despite having received Rs 170 crore State-aid over the past one decade. The audit report of only 2010-11 is being tabled during the meeting as the accounts of 2011-12 and 2012-13 is yet to be audited.
The opening of a second mill to crush sugarcane is the only development seen over the past one decade. While the factory incurred a loss of Rs 7.93 crore in 2009-10 and Rs 18.63 crore in 2010-11, the distillery earned a profit of Rs 2.66 crore and Rs 1.71 crore respectively. However, the only profit earning unit — the distillery — has been shut down.
Even though there were high hopes on the co-generation power unit, it is still in the nascent stages. The company has to repay a loan of Rs 168.07 crore.
There has been a decline in the rate of recovery also, over the years.
The rate of recovery of sugar from sugarcane was 9.51 in 2001, it dipped to 9.10 in 2002 and further to 5.52 in 2009. Luckily, it increased to 8.38 in 2011. Now, it is still hovering around 9.
Renovation
The renovation of the factory was taken up in 2010 itself, and almost 90 per cent of the funds have been paid to the contractors.
Even though the authorities concerned state that the renovation is near completion, it is not evident anywhere. The government should probe the issue, demand farmers.