Tamil Nadu private sugar mills plead for relief due to shortage of rain

Around half the private sugar mills in Tamil Nadu are financially stressed, with many having suspended operations.

The problem is a shortage of rain in four of the past five years, hitting cane availability. Less cane being crushed also translates to a rise in unit cost.

There are 25 private mills and 18 run by co-operatives; around a dozen are not crushing this year, say industry sources. 

The year 2018 saw a 24 per cent rain deficiency in the state. Operating the mills at lower capacity has increased the cost of production by Rs 10 a kg, compared to mills