Date:26/11/2008 URL: http://www.thehindu.com/2008/11/26/stories/2008112651560600.htm
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Karnataka

Sugarcane farmers firm on payment of dues

Special Correspondent


Sugar unit owes Rs. 12 crore to farmers

Farmer leaders want factory’s assets auctioned

to clear their dues


CHICKBALLAPUR: Sugarcane growers from Bangalore Rural, Chickballapur and Tumkur districts on Monday told the Chickballapur Deputy Commissioner Anwar Pasha that they would accept the payment from the Gauribidanur-based Siruguppa Sugars only if it paid the entire amount of Rs. 12 crore, including interest, due to them.

The sugar factory owes Rs. 4.23 crore to farmers from these districts who had supplied sugarcane during the 1999-2000 crushing season.

At a meeting of farmers and officials held at the Gauribidanur tahsildar’s office, Mr. Pasha told the farmers that the factory management had deposited Rs. 4.23 crore into the Deputy Commissioner’s account as directed by the Karnataka High Court. He said that if the farmers were willing, he would make arrangements for the payment of dues from that amount.

However, Karnataka Rajya Raitha Sangha State vice-president N. Venkata Reddy and other leaders said that the dues and interest on it should be treated as a single amount and paid to farmers at one go.

Dr. Reddy and other farmer leaders suggested that the Deputy Commissioner auction the properties of the factory and make arrangements for payment of Rs. 12 crore due to farmers. As the right of ownership of the sugar factory land was still with the State Government, the Deputy Commissioner should pledge a portion of land with the district lead bank, borrow loan and pay the farmers, they suggested.

Mr. Pasha sought 15 days time to take a decision in this regard stating that he had to seek the permission of the High Court. He also apologised to the farmers for not keeping his word that he would ensure payment of Rs. 12 crore by November 20.

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