Farmers demand payment of dues from sugar mill before it resumes operation
Tamilaga Vivasayigal Sangam has appealed to Dharani Sugars at Vasudevanallur in
Tenkasi district to resume operation of the sugar mill after clearing ₹20 crore dues to
the farmers of Virudhunagar and Tenkasi districts.
In a statement, the association’s Virudhunagar president, N.A. Ramachandra Raja, said
that the mill had failed to pay the fair and remunerative price (FRP) for the sugarcane
supplied to the factory for the last three years. The FRP is fixed by the Cabinet
Committee on Economic Affairs.
Stating that because of the accumulation of dues for the cane farmers of Tenkasi
district and those from Rajapalayam, Srivilliputtur and Watrap in Virudhunagar district
suffered a lot as they were not able to pay back the loans due to the banks.
The National Company Law Tribunal had ordered liquidation of Dharani Sugars after it
failed to repay loans to the banks. Dharani Sugars was declared a non-performing asset
and had allowed the insolvency petition against it by the bank.
“However, the Supreme Court gave a reprieve to the sugar mill by staying the NCLT
proceedings and allowed the promoters of the mill to resume operation as per the
officials of State Department of Sugar,” Mr. Ramachandra Raja said.
Though the farmers have welcomed the Supreme Court order, the association said that
the administration of sugar mill should clear all the dues to the farmers before
resuming operation.
The Department of Sugar should ensure the welfare of farmers, the association said.
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