Chennai: Buffeted by lower cane output and capacity utilisation after a string of crippling drought years, owners and chief executives Tamil Nadu’s private sugar mills had met Prime Minister Narendra Modi on Monday with a memorandum seeking rescheduling of loans and exemption from export subsidies, among others, to help them tide over the crisis.
Chennai: Buffeted by lower cane output and capacity utilisation after a string of crippling drought years, owners and chief executives Tamil Nadu’s private sugar mills had met Prime Minister Narendra Modi on Monday with a memorandum seeking rescheduling of loans and exemption from export subsidies, among others, to help them tide over the crisis.
The delegation led by Palani G Periasamy, President of South Indian Sugar Mills Association, met the Prime Minister, and top bureaucrats in the Food Ministry to explain to them why Tamil Nadu's mills has been facing unique stress factors over the last few years.
The southern mill owners delegation was joined by Defence Minister Nirmala Sitharaman, Union Shipping Minister Pon. Radhakrishnan, state BJP General Secretary Vanathi Srinivasan.
A severe drought - the year 2016 was declared 62% deficient in monsoon - and falling recovery rates have put tremendous stress on the sugar mills, said the memorandum to the Prime Minister. “We have a very productive meeting with the prime minister. He received all our points well. I am hopeful that his government will extend a helping hand to the Tamil Nadu sugar industry,” Periasamy told ET.
Other than the loan restructuring and export exemption, mills seek a direct-to-farmer subsidy of Rs 5.50 a quintal, advisory to banks and financial institutions against evoking bankruptcy code on companies under stress, and financial assistance to farmers to help them continue planting into the next season.
According to data provided by South Indian Sugar Mills Association, Tamil Nadu’s mills crushed only 65 lakh tonnes in the current season, down from 254 lakh tonnes in sugar season 2011-12. North-East Monsoon had been invariably deficient from 2011 till 2016, with 2015 being the exception of receiving a postive deviation of 51% in rainfall. “We had explained to them the kind of stress and why the ministries need to focus on Tamil Nadu especially as they go about making reforms,” said a sugar mill representative who attending the meeting, requesting to remain anonymous.
The state mill owners had earlier met Tamil Nadu Chief Minister Edappadi K Palaniswami with a similar wish-list to be fulfilled on the part of the state to help the industry cross its current turbulent times.
The delegation led by Palani G Periasamy, President of South Indian Sugar Mills Association, met the Prime Minister, and top bureaucrats in the Food Ministry to explain to them why Tamil Nadu's mills has been facing unique stress factors over the last few years.
The southern mill owners delegation was joined by Defence Minister Nirmala Sitharaman, Union Shipping Minister Pon. Radhakrishnan, state BJP General Secretary Vanathi Srinivasan.
A severe drought - the year 2016 was declared 62% deficient in monsoon - and falling recovery rates have put tremendous stress on the sugar mills, said the memorandum to the Prime Minister. “We have a very productive meeting with the prime minister. He received all our points well. I am hopeful that his government will extend a helping hand to the Tamil Nadu sugar industry,” Periasamy told ET.
Other than the loan restructuring and export exemption, mills seek a direct-to-farmer subsidy of Rs 5.50 a quintal, advisory to banks and financial institutions against evoking bankruptcy code on companies under stress, and financial assistance to farmers to help them continue planting into the next season.
According to data provided by South Indian Sugar Mills Association, Tamil Nadu’s mills crushed only 65 lakh tonnes in the current season, down from 254 lakh tonnes in sugar season 2011-12. North-East Monsoon had been invariably deficient from 2011 till 2016, with 2015 being the exception of receiving a postive deviation of 51% in rainfall. “We had explained to them the kind of stress and why the ministries need to focus on Tamil Nadu especially as they go about making reforms,” said a sugar mill representative who attending the meeting, requesting to remain anonymous.
The state mill owners had earlier met Tamil Nadu Chief Minister Edappadi K Palaniswami with a similar wish-list to be fulfilled on the part of the state to help the industry cross its current turbulent times.