Indian sugar mills association

TN sugar units seek purchase tax relief

Date:	07 Jan 2012

Source:	The Hindu

Reporter:	Corporate Bureau

News ID:	827

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Dharani Sugars and Chemicals has welcomed the decision of the Tamil Nadu Government to raise the minimum support price for sugarcane to Rs. 2,100 per tonne from Rs. 2,000 per tonne earlier.

In a statement, Palani Periasamy, Chairman of the company, lauded the Chief Minister who had also declared that she would give priority consideration for restarting the ethanol plant. “Even though the industry is going through a difficult time, this increase in cane price is something which she could not avoid. She has to strike a balance between the interest of the industry and the welfare of the farmers. Considering the current situation, her decision is very fair and equitable.” he added. He was hopeful that the Chief Minister would give the industry some relief by removing the purchase tax if not forever, until the sugar industry situation improved.

The decision to encourage ethanol production in Tamil Nadu would have a far reaching impact on the macro economic situation in India, he said. “We are spending huge amount on import of oil. Ethanol is good and viable alternative to reduce our dependence of oil on foreign countries.

Like Brazil, India being the second largest producer of sugar, we must also push forward to ethanol production, which will reduce the outflow on foreign exchange. Sugar industry is suffering because of low price in sugar.

However, if the Government encourages ethanol production, it may become a healthy industry to a great extent in terms of maintaining a healthy financial situation”, he said.

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