As the political battleground intensifies for the Lok Sabha seats on April 19, allegations have surfaced regarding the acquisition of a purportedly ailing sugar factory in Tamil Nadu by DMK functionaries. The factory’s conversion into a foreign-made liquor manufacturing unit, utilising existing infrastructure at a significantly reduced price, has raised concerns, particularly among sugarcane farmers facing substantial arrears.
Sugarcane farmers in Tamil Nadu, notably in Thirumandangudi in Papanasam, have been embroiled in a protracted battle to reclaim unpaid dues for several months. Despite their persistent protests and demonstrations, the grievances of these farmers remain unaddressed by the DMK-led Stalin government. Moreover, apprehensions loom over the transformation of ostensibly defunct sugar mills into distilleries.
In an interview with a YouTube channel, Naam Tamilar Katchi’s functionary, Kaliammal, presented damning allegations implicating DMK MPs Kanimozhi and TR Baalu. She highlighted a sit-in protest initiated by sugarcane farmers on November 30, 2022, which has endured for over 480 days as of March 2024. The farmers accuse the state government of failing to fulfil promises concerning the recovery of dues from Thiru Arooran Sugars Limited, which allegedly obtained loans in the name of farmers between 2016 and 2018.
She said, “A sit-in protest, launched by the sugarcane farmers on November 30 2022, which has crossed 480+ days in March 2024. The farmers accuse the state government of not fulfilling promises made regarding the recovery of dues from Thiru Arooran Sugars Limited, which fraudulently obtained loans in the name of farmers between 2016 and 2018. The protesting farmers are strongly in favour of reopening of the nearby Thiru Arooran Sugars Ltd, a sugar factory that had ceased operations due to purported losses. The livelihoods of 10,000 to 15,000 families depended on the factory, with many having invested in it. Approximately Rs 202 crores, owed to the farmers, remained inaccessible. However, the factory, valued at Rs1,516 crores, was acquired for a mere Rs 87 crores by Kanimozhi and TR Baalu of the DMK under the pretext of repaying the factory’s loans in instalments”.
The aggrieved farmers advocate strongly for the reopening of the nearby Thiru Arooran Sugars Ltd, a defunct sugar factory upon which the livelihoods of thousands of families depended.
However, despite owing approximately Rs. 202 crores to the farmers, the factory, valued at Rs. 1,516 crores, was purportedly acquired by Kanimozhi and TR Baalu for a mere Rs. 87 crores under the pretext of repaying the factory’s loans gradually.
Kaliammal contends that instead of reviving the sugar factory, Kanimozhi and TR Baalu have converted it into a liquor manufacturing plant despite its official designation as a sugar factory on paper. Access for inspection has been restricted, and despite numerous petitions, no action has been taken.
Kaliammal alleges, “Instead of reopening the sugar factory, Kanimozhi and TR Baalu converted it into a liquor manufacturing plant. Although officially designated as a sugar factory on paper, access for inspection has been restricted. Despite numerous petitions, no action has been taken”.
Despite assurances from the state agriculture department, including the provision of no objection certificates (NOC) from banks and appeals against the National Company Law Tribunal’s decision to fully pay dues, progress remains stagnant. The locality, designated as a Protected Agricultural Zone, raises additional concerns regarding the environmental impact of establishing a distillery in the agriculturally rich Cauvery delta area, potentially disrupting farming operations and the local economy.
It is noteworthy to recall DMK’s Kanimozhi’s past vocal criticism of liquor and its impact on families, pledging to close down TASMAC, the government liquor marketing outlet. However, despite these promises echoed by her father, M Karunanidhi, his son MK Stalin, and his grandson Udhayanidhi Stalin, during election campaigns, Tamil Nadu remains heavily reliant on TASMAC revenues. The Tamil Nadu Finance Secretary previously stated an expected revenue of Rs. 50,000 crores from TASMAC sales during 2023-24, with this year’s earnings already reaching Rs. 45,000 crores, a significant increase from the previous financial year.
Kanimozhi, in her promises, assured that the eradication of liquor and TASMAC from the state would be the DMK’s foremost agenda upon assuming power, even if DMK functionaries were operating them. However, these assertions juxtapose against the state’s persistent dependence on liquor revenue, highlighting a stark disparity between political promises and ground realities.
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