Agri Business

Payment of dues from sugar mills: growers seek Tamil Nadu government support

Our Bureau Chennai | Updated on January 21, 2015 Published on January 21, 2015

Price tag: A farmer with the sugarcane crop. Tamil Nadu has fixed a State Advised Price of Rs 2,650 a tonne of sugarcane for this season.

Delegation meets Chief Minister Panneerselvam

Representatives of sugar farmers in Tamil Nadu have sought the Government’s support to ensure proper payment from mills for the current season to September and for clearing dues from the previous season.

A farmers delegation under the Consortium of Indian Farmers Associations (CIFA) met with Tamil Nadu Chief Minister O Panneerselvam, Industry Minister P Thangamani, and senior government officials, according to RV Giri, General Secretary, CIFA-Tamil Nadu.

Tamil Nadu has fixed a State Advised Price of ₹2,650 a tonne of sugarcane for this season against the statutory Fair and Remunerative Price of ₹ 2,200 announced by the Centre.

However, private sector sugar mills in Tamil Nadu have refused to pay the higher price as they find it unviable with sugar prices ruling low at about ₹26 a kg. Sugar prices do not cover the cost of production for the mills.

Last year, Tamil Nadu had set a price of ₹2,650 a tonne against the Centre’s FRP of ₹2,100 a tonne.

Mills paid about ₹2,350 a tonne and had asked the State to pay the rest.

The other side

Sugar company representatives under the South Indian Sugar Mills Association – Tamil Nadu had met with the Chief Minister recently urging that the government to provide financial support to pay sugarcane farmers.

Giri said the farmers’ delegation had asked the State government to take steps to ensure the farmers are paid fully, including the last season’s dues amounting to about ₹350 crore.

Tamil Nadu should emulate other sugarcane producing States such as Uttar Pradesh and Karnataka, which have supported sugarcane payments with financial assistance either directly to farmers or to mills, Giri said. He added that at the meeting Chief Minister referred to the delegation from the South India Sugar Mills Association and assured that the State government will consider the demands of both the sides.

Published on January 21, 2015
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