Dhangadhi, November 1:

An official of the Basuling Sugar Mill, the biggest sugar factory in the far-western region, today said they are not being able to repay outstanding dues to sugarcane farmers as the government has been denying them a loan it provides for sick industries.

Listing the sugar mill as a sick company, the sick industry committee formed by the government on May 27, 2004 had decided to provide the mill a sum of Rs 30 million as loan, a press release issued yesterday by the manager of the mill, Dambar Dhoj Abasthi, said.

Arun Chand, the managing director of the Basuling sugar mill and the son of former prime minister Lokendra Bahadur Chand was reportedly abducted by the Maoists after sugarcane farmers of the area complained about their outstanding dues to the Maoists.

Admitting that the mill owes a lot of money to the farmers, Abasthi said the payment would have been possible had the government provided the loan to the company in time.