Date:14/08/2008 URL: http://www.thehindu.com/2008/08/14/stories/2008081455320400.htm

Karnataka - Bangalore

Minister: sugar factories told to pay Rs. 1,100 for a tonne of cane

Special Correspondent

DCs told to get order implemented
Erring factories warned of non-renewal of licence

Bangalore: Minister for Sugar and Agricultural Marketing Shivaraj Tangadagi on Wednesday said that all sugar factories in the State had been directed to pay Rs.1,100 per tonne of sugarcane, with effect from August 1.

Speaking to presspersons here, the Minister said that deputy commissioners of districts had been ordered to make arrangements for implementing it, pending a decision by the Union Government. The farmers who got Rs. 851 per tonne of sugarcane a few years ago were getting Rs. 960 per tonne till recently and it had now been decided to raise it to Rs.1,100. But, the Minister did not comment on the demand by farmers at the meeting, addressed by Chief Minister B.S. Yeddyurappa, on fixing the rate on the basis of cost of production.

Mr. Tangadagi said that eight sugar factories had agreed to pay Rs. 100 out of Rs. 160 more as agreed upon before Governor Rameshwar Thakur during President’s Rule. The factories are M.K. Hubli, Malaprabha, MPM, Mysugar, Nandi, Bannari Amman, Kothari and Chamundeshwari sugar factories.

He said that the other factories had also been told to fall in line. They have been warned that their licence would not be renewed if they failed to pay the minimum support price to farmers. All the factories owed a total of Rs. 331 crore to sugarcane growers at a rate of Rs. 160 more per tonne of cane.

The Minister said that all the 146 agricultural produce market committees had been directed to introduce electronic display of prices for each produce, within a month.