Farmers are anticipating a positive response from the Tamilaga Vettri Kazhagam (TVK) Government to the proposal for modernising the Amaravathi Cooperative Sugar Mill at Madathukulam.

The proposal readied by the Tamil Nadu Sugar Corporation Limited was forwarded to the government through the Agriculture Production Commissioner, for consideration of the Finance Department, during January.

Cane farmers in Coimbatore, Tiruppur and Dindigul that constitute the command area of the mill have been urging the government to revamp the mill for long.

The mill management, farmers lamented, has not been able to extract a commitment on timeline for execution of the project from the government.

“We are hopeful of a positive response from the government, and have decided to wait for one more month before deciding on the next course of action,” Jegadeesh of Udumalpet, a farmer in the forefront of campaigns for the mill’s revival, said.

The Tamil Nadu Karumbu Vivasayigal Sangam has sought modernisation of the mill with a crushing capacity of 2,500 tonnes a day.

The mill management had sought sanction of ₹160 crore for replacement of old machinery that was discarded during 2023.

Only the distillery unit extracting rectified spirit and ethanol is functional in the mill. However, its functionality also hinges on the supply of molasses from other mills.

Despite being able to raise sugarcane crop with the highest extent of 11% recovery rate, farmers are constrained to either transport their produce to other mills or establish own jaggery units.

The government is likely to derive utility of the loan scheme of National Cooperative Development Corporation (NCDC), which has reduced its floating rate of interest for term loan to 8.50% under the grant-in-aid scheme of the Ministry of Cooperation, for strengthening of the cooperative sugar mills (CSMs), sources said.

Published - July 21, 2026 08:58 pm IST