CHENNAI: The state government should immediately call a meeting of farmers' associations and owners of sugar mills to find a solution to problems faced by them, Tamil Nadu Congress Committee chief E V K S Elangovan on Monday. 

In a statement, Elangovan said nearly five lakh sugarcane farmers and their families were on the verge of quitting their profession due to wrong policies of the state and central governments. 

"Though India is one of the largest producers of sugar, arrears pending to farmers cultivating sugarcane has crossed Rs 21,000 crore. The Centre has sanctioned only Rs 6,000 crore as loan for sugar mills, and by this action, the farmers are not going to benefit in any manner," he said. 

The sugar production in the state was 7.15 lakh tonne last year and adding the production so far this year, the stocks with sugar mills has crossed eight lakh tonnes, he said. 

The mills were finding it difficult to sell their produce at a profitable price and stocks are lying in godowns, he said. 

"Though there is enough stock with sugar mills in the state, the Tamil Nadu government has floated international tenders to purchase sugar for distributing it in the public distribution system. This is a move against the farmers," he said. 

"The value added tax rate levied on sugar at 5% is also high and due to this price per tonne is sold at Rs 1,200 which is high compared to other states," he added.