Opposition AIADMK on Monday demanded the intervention of Lieutenant Governor Virendra Kataria in preventing the Co-operative Sugar Mills at Lingareddipalayam and other cooperative institutions from ‘impending’ closure.
Briefing newsmen at a press conference on Monday, AIADMK state secretary and MLA A Anbazhagan alleged that owing to the failure of management to settle dues to cane growers, the sugar mill was on the verge of closure. He claimed that Rs12 crore was pending payment to cane growers who have supplied cane to the mill, while an equal amount was due payment for the staff of the mill in the form of EPF, LIC premium and other dues.
As a result of non-payment of dues, the cane growers were giving the cane for crushing to private mills, alleged Anbazhagan. From three lakh tonne of cane supplied in 2011-2012 to Cooperative Sugar Mill, now it has decreased to one lakh tonne, he added.
He accused the government of deliberately siding with the private mill owners by pushing the cane growers to supply to private mills through non-payment of their dues.