CHENNAI: In poll-bound Tamil Nadu, politicians have promised to allow sugar mills to produce more ethanol, opening a door long knocked upon. But, the positive has been somewhat shadowed with a vow to hike cane remunerations, a move mills believe is out of place in the market-based sugar economy at play. Farmers dismiss it as poll-time rhetoric.
There have been long-pending concerns for millers regarding a 5% Value Added Tax slapped in November 2014 making the state sugar incompetitive. TKS Elangovan, the party spokesperson for DMK says the party, if it comes to power, will hold tripartite talks with farmers and sugar mills to arrive at a consensus over cane pricing.
"When the farmers had not received the state advised price for over two years, these promises will remain a poll-time rhetoric," said KV Ponnaiyan, a farmer from Erode district.