Federation of Tamil Nadu Agriculturists’ Associations has alleged that the State Government was responsible for the ₹ 350 crore mega scam by a private sugar mill at Thanjavur recently.
In a press release, its secretary S. Nallasamy said that the sugar mill failed to clear the dues of the farmers for the crushing season 2016-17 and 2017-18 and had also obtained loan from the bank in the names of farmers to the tune of ₹ 350 crore. The release said that after the scam surfaced, the district administration, the State and the Central Government failed to initiate any action against the private mill. “To prevent them from escaping from the country, their passport should be seized and a CBI probe should be ordered,” the release added.
Mr. Nallasamy said that as per the Sugarcane Control Order, 1966, the jurisdiction area from where sugarcane can be procured should be fixed by the mill and it should also pay the minimum support price to the farmers that were fixed by the Government. “If farmers sell their produce to outsiders, it is violation. If dues to farmers are pending, the government is responsible”, he added. It also wanted farmers to be given share for the value added products made out of sugarcane by the mills.