Sugarcane farmers demand interest on pending cane dues

Thanjavur: The Tamil Nadu Cauvery Farmers Protection Association has urged the Tamil Nadu government to take action in calculating and providing interest for the delayed payment of the fair and remunerative price (FRP) for sugarcane purchased by sugar mills before and after the COVID-19 pandemic, reports The Hindu.

In a letter directed to Tamil Nadu Chief Secretary V. Iraianbu, Sundara Vimalanathan, the secretary of the Tamilnadu Cauvery Farmers Protection Association, highlighted the fact that the majority of sugar mills in the state, both cooperative and private, have failed to make timely payments for the sugarcane procured from farmers during the pre-COVID period of 2017 and 2018, as well as the post-COVID period of 2022 and 2023. These payments were supposed to be made within 14 days from the date of cane procurement.

As per section 3(A) of the Sugarcane (Control) Order, 1996, if the sugar mill fails to clear cane bills within 14 days of procurement, it should pay interest on that amount, he said.

The government should apply this rule and ensure that the sugar mills pay interest on the delayed cane payment to the cane farmers, he said.

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