Tamil Nadu sugar mills seek support from centre, state to boost output

Industry wants go-ahead to produce power from co-gen units, seeks higher subsidies to farmers; also wants RBI to relook at NPA policy specific to the sector

Mills in Tamil Nadu have sought help from the central and state governments to improve performance in the next sugar season starting October 2018. The industry, which thanked the central government for favourable decisions on subsidies and other matters, wants the state government to allow it to produce power from co-gen facilities, so that its performance improves.

The industry in Tamil Nadu has reported the lowest recovery the past five years, during the September 2018 season, owing to inadequate rainfall.

According to the South Indian Sugar Mills Association, Tamil Nadu (SISMA-TN), capacity utilisation during the September 2018 season has fallen to 27