Tamil Nadu: Farmers urges sugar mill to settle dues before resuming operations

Madurai: The Tamilaga Vivasayigal Sangam has issued an appeal to Dharani Sugars situated in Vasudevanallur, Tenkasi district, urging the sugar mill to recommence its operations after settling outstanding dues amounting to ₹20 crore owed to farmers in Virudhunagar and Tenkasi districts, reported The Hindu.

According to a statement released by the association’s president in Virudhunagar, N.A. Ramachandra Raja, the mill has defaulted on payments of the fair and remunerative price (FRP) for sugarcane supplied to the mill over the past three years. The FRP is determined by the Cabinet Committee on Economic Affairs.

Ramachandra Raja highlighted the significant impact of the accumulated dues on cane farmers in Tenkasi district, as well as those in Rajapalayam, Srivilliputtur, and Watrap in Virudhunagar district, resulting in their inability to repay loans to banks.

Following the National Company Law Tribunal’s directive for the liquidation of Dharani Sugars due to its failure in loan repayment to banks, the mill was classified as a non-performing asset, leading to the initiation of insolvency proceedings against it.

“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,” stated Ramachandra Raja.

While farmers have expressed gratitude for the Supreme Court’s decision, the association emphasized the necessity for the sugar mill’s management to settle all outstanding dues to farmers before restarting operations.

The association urged the Department of Sugar to ensure the welfare of farmers in this process.


  1. தரணி சர்க்கரை ஆலையில் பணிபுரிந்த தொழிலாளர்களின் வாழ்க்கை தரும் செயல்படவில்லை. அவர்கள் வாழ்க்கைக்கு என்ன தரணி சர்க்கரை ஆலை நிர்வாகம் என்ன செய்யவிருக்கிறது


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