The Federation of Tamil Nadu and Puducherry State Private Sugarmill Cane Growers’ Associations has urged the Union Government to take steps to ensure payment of dues totalling ₹65 crore owed by four private sugar mills — two in Cuddalore district and one each in Thanjavur and Nagapattinam districts to farmers.
In a memorandum addressed to Union Finance Minister Nirmala Sitharaman, K.S. Venkatesan, secretary of the association, said that the delay in settling dues had left hundreds of farmers in Cuddalore, Nagapattinam and Thanjavur districts in distress.
He said that Ambika Sugar Mills at Chittoor and Thiru Arooran Sugar Mills at Thirumandakudi and Kottur were yet to settle dues to cane growers who had supplied sugar cane to the mills over the last four years.
The National Company Law Tribunal (NCLT) has already initiated insolvency proceedings against the four mills based on petitions filed by banks. This has confirmed the fear of farmers that they will no longer get the pending dues, he said.
The Association also demanded that an amendment be made in the Insolvency and Bankruptcy Code (IBC) to change the status of cane growers from operational creditors to priority creditors.
The Tamil Nadu Government has already sent a proposal in favour of the amendment to the Centre.
The Union Government has the responsibility to protect the welfare of farmers. Hence, it should immediately intervene and ensure settlement of pending dues to farmers, Mr. Venkatesan added.