Under constant pressure from farmers and representatives of political parties, Parvatipuram-Manyam district administration took steps to clear the dues to the farmers who supplied sugarcane to NCS Sugars of Latchayyapeta of Sitanagaram mandal in the district.
As the factory management was unable to clear dues owing to financial troubles, the government auctioned a portion of the lands of the factory to make payments to the farmers. Although the successful bidders had deposited the amount, the government authorities could not process those cheques due to technical problems which led to widespread agitations.