Rajapalayam: The Tamilaga Vivasayigal Sangam has raised concerns about Dharani Sugars in Tenkasi district, questioning whether the factory will truly resume cane-crushing operations as promised, reported The Hindu.
The association has appealed to the Director of Sugar, requesting permission for farmers to register their sugarcane and send it to alternative factories—Sakthi Sugars in Sivaganga and Rajshree Sugars in Theni district—for processing.
In his petition, the association’s president, N.A. Ramachandra Raja explained that Dharani Sugars in Vasudevanallur ceased operations in 2021, leading the State Government to redirect cane from Virudhunagar and Tenkasi districts to other mills. “For the last three years, we have been sending around 1,000 tonnes of cane to those mills after registering with them,” said Mr Raja.
In June 2024, Dharani Sugars assured farmers it would settle unpaid dues totalling ₹22 crores by November 2024 and restart operations. This commitment prompted the other two factories to halt operations in Tenkasi and Virudhunagar by September 2024, and cancel prior cane registrations with local farmers. However, Dharani Sugars has so far paid only 50% of the arrears owed, according to Mr. Raja.
The association expressed worry over the lack of action by Dharani Sugars to meet its promises, noting that no progress has been made on clearing dues or preparing machinery, which has been unused for four years, for the upcoming crushing season.
“The factory is in a dire state, even unable to pay its workers’ salaries for two months. We’re concerned about how it will resume operations as promised,” Mr. Raja added.
The association noted that cane in both districts is ready for harvest. “Farmers are uncertain about where to send their cane for crushing, which could lead to crop stagnation as seen in previous years,” Mr Raja warned.
Farmers are now asking the State Government to allow their produce to be registered with the mills in Sivaganga and Theni for this season, ensuring they receive the SAP rate of ₹260 per tonne. They also stated that they would consider registering with Dharani Sugars next season, provided it fully settles past dues and completes necessary maintenance.
The association has conveyed these requests to the district Collectors of Virudhunagar and Tenkasi.
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