June 8, 2018
Sugaronline | https://goo.gl/NNpNyT
Pointing out that sugar industry in Tamil Nadu was going through an extended cycle of negative growth and low capacity utilisation due to drought, Chief Minister Edappadi K Palaniswami on Thursday urged Prime Minister Narendra Modi to exempt the State this season on certain measures as sugar mills were unable to fulfill the conditions set for various incentives, according to India’s UNI news agency.
In a Demi-Official letter to Mr Modi, he urged him to provide relief to the sugar industry in the state as it would not get any benefit from the recent measures announced by the Centre.
Referring to media reports that the Union Cabinet has approved certain measures to improve the liquidity of the sugar mills, he said creation of buffer stock was useful only to the mills that have not yet cleared the Fair and Remunerative Price (FRP) and also have excess sugar stock.
Stating that these sugar mills were mostly confined to Maharashtra and Uttar Pradesh, he said in case of Tamil Nadu, most of the private sugar mills have paid their FRP through borrowings and Cooperative and Public Sector sugar mills have cleared the arrears with high interest cost
through ways and means advance from the State Government.