TN sugar mills seek sup­port from Cen­tre, state

Business Standard - - ECONOMY - GIREESH BABU

The sugar mills in Tamil Nadu have sought help from the cen­tral and state gov­ern­ments to im­prove their per­for­mance in the next sugar sea­son start­ing Oc­to­ber, 2018. The in­dus­try, which thanked the cen­tral gov­ern­ment for favourable de­ci­sions on sub­sidy and oth­ers, has asked the state gov­ern­ment to al­low them pro­duce power from the co-gen fa­cil­i­ties, which will help them im­prove per­for­mance.

The in­dus­try in Tamil Nadu has re­ported the low­est re­cov­ery in last five years, dur­ing the sea­son end­ing Septem­ber this year, ow­ing to the lack of proper rain­fall.

Ac­cord­ing to the South In­dian Sugar Mills As­so­ci­a­tion, Tamil Nadu (SISMA TN), the ca­pac­ity util­i­sa­tion for the sea­son end­ing Septem­ber, 2018 has come down to 27 per cent from the pervi­ous year’s 39 per cent. The quan­tity of cane crushed was around 8.2 mil­lion met­ric tonne com­pared to 11.9 mil­lion met­ric tonne dur­ing the pre­vi­ous sea­son. The sugar pro­duc­tion has come down to 7,08,000 met­ric tonne com­pared to over one mil­lion met­ric tonne dur­ing the pre­vi­ous year.

The cost of pro­duc­tion of Tamil Nadu Sugar will be higher than rest of In­dia by ~10 per kilo­gramme, said the or­gan­i­sa­tion.

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