CM seeks exemption from sugar reforms

He demanded that the state be granted exemption from stock holding limits as the annual requirement of sugar is 15 lakh metric tonnes while its production is 5.8 lakh metric tonnes.

“The MIEQ (Minimum Indicative Export Quota) allocated for the sugar mills in Tamil Nadu is almost 14.16 per cent of the sugar production as against 5.82 per cent for the surplus states.

This quota has been allocated even for mills that have not crushed and for mills that do not have sufficient stock. Export of sugar at Rs 19 per kg is a loss making proposition for the sugar industry in the state. Therefore, Tamil Nadu may be exempted from this measure. The Ministry of Consumer Affairs, Food and Public Distribution, is also being addressed in this regard,” the CM said.

While the stock available for sale, which is 2.17 lakh metric tonne for all the mills of the state and the Fair and Remunerative Price (FRP) arrears being Rs 226.25 crore, the sugar mills have been clearing the FRP dues by borrowing funds at high rates of interest despite severe financial stress. Citing this, he said interest subvention on loans availed by them for payment of FRP for the season 2017-18 may be considered as a special case.

“The production subsidy of Rs 5.5 per quintal of sugarcane that was announced earlier should also be extended to the farmers and mills in the state without linking it to ethanol supply and MIEQ compliance. As the sugar mills in the state are unable to fulfil the conditions being set for various incentives, Tamil Nadu may be exempted from the same during this season,” Palaniswami said.