Workers of National Co-op. Sugar Mills at Alanganallur not paid for over two years
The employees say Agriculture Minister M.R.K. Panneerselvam had spoken about the reopening of the mill; they are still hopeful that it will be restarted and their salaries paid
The sixdecadesold National Cooperative Sugar Mills at Alanganallur near Madurai, which stopped its operation in 2019 owing to dwindling revenue during the COVID19 period, has cost employment of 76 workers who are currently guarding the mill.
The employees who have not received their salary for more than two years are hopeful that the mill would be restarted and their salaries paid.
Though Chief Minister M.K. Stalin in his election campaign promised that the mill would be reopened, no steps were taken, said the workers.
They said Agriculture Minister M.R.K. Panneerselvam assured both in Assembly and party meetings the mill would be reopened but had not spoken about it despite several representations.
The mill (137.68 acre), one of the oldest in the State, started in 1966 with a capacity to crush 1,000 tonnes of sugarcane per day, was upgraded at ₹ 2.50 crore in 1977 to increase the crushing capacity to 1,500 tonnes per day. Again in 1989, it was upgraded at a cost of ₹ 7 crore with a capacity of crushing 2,500 tonnes per day .
From 2009 to 2019, the quantity of sugarcane crushed at the mill dwindled from 1.25 crore metric tonne to 60, 352 metric tonne, which was cited as the main reason for the shutdown of the mill in 2019, said sources.
The main reason for the decline in processing sugarcane was fear among farmers to harvest sugarcane, fearing they could sell their produce during a precarious situation like COVID19.
This is the only cooperative mill in the southern districts. Officials pointed out that the latest share capital value to the mill as calculated on March 31, 2023, was ₹ 10.13 crore. The highest share value was held by about 27,000 farmers with ₹ 9.63 crore followed by the State government with ₹ 49.20 lakh.
“Even though the revenue turnout of the mill was reduced over the years, the share value shows that it is one of the important mills in the State,” the officials added.
More importantly, only about a handful of workers out of the 76 were seasonally deputed to sugarcane mills in Thanjavur, Mohanur and Kallakurichi. Other employees who carried out different works during the mill operation were posted as security guards for the mill.
“A committee appointed by the State government inspected and estimated ₹ 27 crore (₹ 10 crore for repairs and ₹ 17 crore for payment of pending wages) was needed to reopen the mill. That report is put on hold leaving both the farmers and the workers in a blind situation,” said N. Palanisamy, State president, Tamil Nadu Sugarcane Farmers Association.
“We have sent an estimated amount of ₹ 8.36 crore for clearing the pending wages starting from May 2022 to December 2023. As the Provident Fund (PF) is not contributed by the government, even that is kept on hold due,” said a senior employee of the mill.
A senior agricultural officer overseeing all 16 cooperative mills in the State said that though the committee’s report and the pending salary details had been forwarded to the State government.