Major victory for the struggling farmers against corporate defaulters: AIKS

All India Kisan Sabha has congratulated the sugarcane farmers of Thanjavur, who under the leadership of Tamil Nadu Sugarcane Farmers Association, an affiliate of All India Sugarcane Farmers’ Federation, AIKS for obtaining a significant victory in the struggle against frauds committed by Thiru Arooran Sugars Ltd, a leading private mill which got liquidated as a result of the corporate frauds they committed.

Sugarcane farmers are conducting a relay stir for more than 300 days in the premises of the private mill demanding that the bank loans taken by Thiru Arooran management in the name of the farmers without their consent should be settled before it is recommissioned. The private mill took a loan of Rs. 130 crores from nationalized banks in the name of the farmers.

Thiru Arooran Sugars is one of the oldest sugar mills in Tamil Nadu. The Chennai bench of the National Company Law Tribunal (NCLT) ordered liquidation of Thiru Arooran Sugars in 2021 based on a case filed by the State Bank of India (SBI) for alleged default. Kals Distilleries eventually took over assets of Thiru Arooran Sugars based on NCLT order. However, farmers physically resisted the functioning of the sugar mill under new management.

Farmers insisted that before recommissioning the loan in the name of the farmers should be transferred to the management of Arooran Sugars and farmers should be set free from the debt. Farmers also demanded that they should be paid the entire sugarcane money due by Arooran Sugars with interest.

The Tamil Nadu Sugarcane Farmers Association is holding a relay stir from 22-11-2022 in the premises of Arooran Sugars raising these demands. On the 300th day of the struggle, a call was given by the Tamil Nadu Sugarcane Farmers Association and Tamil Nadu Kisan Sabha to hold a dharna in front of Thanjavur District Collectorate.

The police stopped the sugarcane farmers who had come to participate in the protest under the leadership of D Raveendran, National President of All India Sugarcane Farmers’ Federation and Vice President, AIKS, Sami Natarajan, state secretary, Tamil Nadu AIKS, and forcibly arrested them. They also arrested the farmers and office bearers who had gathered in-front of the Thanjavur district collector’s office. AIKS condemns the oppressive act of police against protesting farmers.

A negotiation was held under the leadership of the district collector at night on September 26. Rs. 115 crores loan taken by Arooran Sugars in the name of the farmers was transferred to the corporate defaulter itself and thus freed farmers from the debt. Kals Distillery Ltd, which took over Arooran agreed to pay the entire sugarcane arrears (FRP) to the sugarcane farmers. "This is a major victory for the struggling farmers against corporate defaulters who made huge profits by exploiting and cheating farmers," the AIKS said in a pressnote.

The Tamil Nadu Sugarcane Farmers Association has decided to continue the relay stir in the premises of Arooran until all other demands are met. For instance, Arooran Sugars had defaulted the payment of the crop loan in the years of 2014 and 2015 to the banks. The corporate firm deducted the money from the farmers but failed to deposit the same amount to different nationalized banks from where farmers took the loan. The Sugarcane Farmers Association is demanding that the Kals Distilleries should settle this before they start operations.

"This struggle and victory is a warning to similar corporate defaulters in the sugar industry, scattered over different sugar producing states, who have cheated farmers. This will inspire struggles of sugarcane farmers elsewhere," said AIKS President Ashok Dhawale and General Secretary Vijoo Krishnan.