MADURAI
Any attempt to implement ‘revenue sharing formula’ between sugar mills and sugarcane farmers would spell doom not only for the farmers but also for sugar production as farmers would give up cane cultivation, said Tamil Nadu Farmers’ Association general secretary P. Shanmugam.
Addressing a protest organised by Tamil Nadu Cane Growers’ Association here on Monday, Mr. Shanmugam said the State government had repeatedly failed to get State Advisory Price (SAP) for cane from 11 private sugar mills to the farmers.
“It has piled up to ₹1,600 crore in the last four years. Even after several rounds of talks, including the ones chaired by Industries Minister Sampath, the mills have denied the SAP,” he said.
“Will the banks not levy compound interest on loans taken by farmers? In that case, why should the farmers be denied their rightful price running to several crores?,” Mr. Shanmugam asked.
N. Palaniswami, president of Tamil Nadu Cane Growers’ Association, said, “Frustrated with its inefficiency in getting what is due for the farmers, the State government is now trying to implement profit sharing formula recommended by the Rengarajan Committee, thereby doing away with the SAP. This was the reason for the government not having announced the SAP for the current crushing season that will begin at national cooperative sugar mills in December.”
Stating that several State governments in north India were preparing to implement profit sharing formula, Mr. Palaniswami said the farmers would vehemently oppose any such move by the Tamil Nadu government.
Mr. Shanmugam said Section 5A of the Sugar Control Act mandated that sugar mills should share their profit with the farmers. “But in all these years, sugar mills have only shown loss and never shared their profits with the farmers,” he said.
Revenue sharing formula could work for farmers in other States where recovery rate was high. But in Tamil Nadu, the recovery rate was only around 8.5% to 9%, and rarely 9.5%. “At this rate, the farmers are not going to get any benefit,” he said.
Sugarcane farmers from several southern districts took part in the protest.
