Trichy: The cane producers from Trichy district are unable to get loans from the banks including co-operative and nationalised banks and have been declared as defaulters. The farmers complain that the situation has arisen due to the declaration of bankruptcy by the Thiru Arooran sugar mill in Thanjavur in July this year as the mill owes arrears worth Rs 32 crore to farmers. Farmers have stated that they could not repay their loans as the mill could not settle their dues. They sought government help in clearing the dues.
Due to various reasons, Tamil Nadu sugar industry is in deep crisis, and they are awaiting financial assistance to come on track. Sugar producers from the state have requested a relief package to come out of this grim situation. Drought in the state has impacted the sugarcane production. The cane shortage has affected the mills as many were forced to shut it. Drought impact is likely to persist in season 2019-2020 too.
Recently, Union Finance minister Nirmala Sitharaman had assured Tamil Nadu sugar industry to revive when she met the representatives of the sugar sector in Chennai. She had promised to arrange a meeting with RBI and banks, where they can discuss and find a solution to uplift the sugar industry. The industry is hoping sops after assurance from Finance Minister.
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