TIRUPPUR: The Amaravathi Co-Op Sugar Mills has assured farmers that the first instalment of payment for the sugarcane procured from them would be released on Friday. Farmers in Madathukulam and Udumalaipet allege the mill delayed payment for more than 60 days.
According to sources, from May 3 - July 3, Amaravathi Sugar Mills crushed 42,546 tonnes of sugar cane that was procured from 664 sugarcane farmers. But, the mill paid 310 farmers and the outstanding is around Rs 7.55 crore.
Speaking to TNIE, Tamil Nadu Farmers Association (Udumalaipet) secretary Bala Dhandapan said, “Amaravathi Sugar Mills is the largest in Tiruppur with the capacity to crush more than 70,000 tonnes. But due to a lack of modernization and other issues, it has lowered crushing capacity.
Besides, the organization has been following a payment system of settling the due to the sugarcane within 15 days. But for the past 60 days, it hasn’t paid more than Rs 7.55 crore.” Speaking to TNIE, Amaravathi Co-Op Sugar Mills Ltd - Managing Director K Shanmuganathan said, “Higher Officials have promised to clear payment as early as possible. On July 28, Rs 1.2 crore and on August 4, Rs 55 lakh will be paid to farmers.”