Tamizhaga Vazhvurimai Katchi would stage agitation in front of private sugar factories for not honouring their commitments to the farmers and allowing the arrears to mount to Rs 500 crore on December 23, 2014

Founder of the Tamizhaga Vazhvurimai Katchi T. Velmurugan has lashed out at the private sugar factories for not honouring their commitments to the farmers and allowing the arrears to mount to Rs 500 crore in the current season.

Mr Velmurugan told The Hindu that these factories were not adhering to the government fixed price of Rs 2,650 for a tonne of sugarcane. Instead, they continued to pay just Rs 2,350 for a tonne of sugarcane, thus, withholding Rs 300.

On this differential score alone the sugar factories had built up arrears running into Rs 500 crore. Besides this, these factories were making undue delay in making the payment to the farmers even though there were stipulations that the monies should be cleared within 15 days of cane supply.

Mr Velmurugan pointed out that cane price in Tamil Nadu was the lowest in the country. The prices fixed by other States were as follows: Uttar Pradesh –Rs 3,200 a tonne, Punjab – Rs 3,020 a tonne and Haryana – Rs 3,100 a tonne, whereas in Tamil Nadu it is Rs 2,650 a tonne and even this was not paid.

Considering the rising cost including high wages to farm hands, the TVK had urged the Tamil Nadu government to provide a remunerative price of Rs 3,500 for a tonne for the year 2014 - 2015.

He further noted that having realised the plight of the sugarcane growers who, owing to paucity of funds, could not solemnise the marriages of their wards nor could not allow their wards to continue higher studies, the Centre had offered interest-free loan to the tune of Rs 6,000 crores to the sugar sector in the country.

The measure was aimed at supporting the sugar factories to clear the arrears and start the current crushing season on a clear slate. Instead, the sugar factories seemed to be diverting the funds for purposes other than fulfilling their obligations to the farmers.

Therefore, condemning such unhelpful attitude of the private sugar factories towards the farmers and their lack of concern for adhering to the government fixed price the TVK would stage agitation in front of those sugar factories on December 23, Mr Velmurugan added.