Surgarcane cultivation is expected to come down significantly in kharif season, thanks to the closure of two sugar crushing units in Vizianagaram district in the last couple of years. Bhimasingi Cooperative Sugar Factory and NCS Sugars, a private unit, at Sitanagaram have halted their operations due continuous losses and non-availability of adequate sugarcane.
Currently, the sugarcane growers in the district are dependent on a private sugar factory located on Rajam-Palakonda road, but are burdened by heavy transportation charges as the unit is located at a long distance.