Chennai: 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 Tamil Nadu have requested a relief package to come out of this grim situation. The representatives of South India Sugar Mills Association (SISMA) and cane producing farmers expressed their grievances during interaction with Finance ministry officials, bank representatives and state government officials.
The reduction in the cane cultivation area has resulted in mills not running with full capacity, pointed the SISMA officials. According to the reports, due to shortage of sugarcane in 2019-20 season 14 out of 25 private mills will only operate. They have demanded the restructuring of debt repayment and relief package for the sugar industry.
They stated that the industry is metamorphosing and it will take 18 months to relieve from stress cycle. RBI and Banks have been requested to consider fresh loans and restructuring. Farmers expressed grievances over inadequate rainfall, consistent drought, reduced production, and mounting debt. They stated that this has affected their other financial sources. They requested for a special relief package.
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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