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.
