Chennai: Sugarcane farmers in the state are on the warpath, following state government’s inaction in getting private sugar mills to pay the State Advised Price (SAP), a component of sugarcane price, to farmers amounting to a total of Rs 400 crore.
Agitated over the sugar mill owners’ refusal to pay their dues, members of the Tamil Nadu Sugarcane Farmers Association said that they would gherao the Secretariat on October 15, seeking state government’s immediate intervention.
The Centre has announced Rs 2,350 per tonne as Fair Remunerative Price (FRP); this was formerly known as Statutory Minimum Price for the cane-crushing year 2013-14.
The Tamil Nadu government announced an additional incentive of Rs 300 per tonne as State Advised Price (SAP). Thus, sugar mills have to pay a total of Rs 2,650 per tonne of cane to the farmers.
While cooperative and public sector sugar mills in the state paid the whole price, private sugar mills in the state kept Rs 300 announced by the state pending, and now they owe farmers a whopping Rs 400 crore, said P. Shanmugham, general secretary, Tamil Nadu Vivasaigal Sangam.
Over three lakh farmers in the state are involved in sugarcane cultivation. There are a total of 43 sugarcane mills including 18 in the cooperative sector in the state.
Shanmugham alleged that 25 sugarmill owners were refusing to pay the State Advised Price of Rs 300 to farmers, seeking a subsidy. “If the mill owners pay only the Centre announced FRP, then farmers will boycott private sugar mills or change the crops altogether,” he said.
As per the Sugarcane Control Act, the mills have to pay the farmers within 14 days from the date of receiving sugarcane. If not, an interest of 15 per cent should be paid for the delayed payment beyond 14 days.
He wondered why government was not taking action against the private mill owners for blatantly violating the government order. “To resolve this issue, state government should immediately hold a tripartite meeting and should also announce SAP for 2014-15,” he demanded.
