Belagavi: After dilly-dallying for nearly 18 months, Chief Minister Siddaramaiah declared on Tuesday declared that the state government will clear sugarcane farmers’ dues for the year 2013-14 amounting to Rs 923 crore in two installments by July end. The Chief Minister however, turned the heat on the union government, alleging that the latter had to share the cost of clearing sugarcane farmers’ arrears amounting Rs 2,120 crore for the year 2014-15.
Replying to the debate on the crisis in the farming sector and farmer suicides in the Legislative Assembly here, Mr Siddaramaiah said the state government would shoulder the responsibility of clearing the dues for 2013-14 only to prove its commitment to people of the state. With this, the state government has doled out nearly over Rs 1500 crore from the exchequer to clear arrears for sugarcane supplied to 60 mills in the state for 2013-14.
Launching a veiled attack on the Centre, Mr Siddaramaiah said as far as sugarcane arrears of Rs 2120 crore for 2014-15 is concerned, the state government has decided to seek central assistance as it cannot alone bear the responsibility after the Union government fixed the FAR price based on which sugarcane price is fixed across the country.
“The Centre cannot run away from its responsibility after announcing FAR for sugar. Without its assistance, it will be difficult for the state government to ensure payment of arrears. “So let us (all party leaders) go to Prime Minister Narendra Modi in a delegation and seek his intervention,’’ he said.
He also said that the state government was ready to pay compensation of Rs 1 lakh each to the kin of deceased farmers with as many as 21 farmers committing suicide since March due to different reasons. “We have already announced Rs 10 lakh compensation in the case of Vittal Arabhavi, who committed suicide in front of Suvarna Soudha in 2013, as a special case.
But we also need to ponder before making the demand for raising the quantum of compensation to farmers who commit suicide. In most cases, the compensation should not become an inducement for committing suicide,” he contended.
However, opposition parties continued with their demand that the government should clear the 2013-14 arrears right now besides making a commitment on the floor of the House with regard to payment of arrears of 2014-15.
Opposition leader Jagadish Shettar claimed the state government was shirking its responsibilities which angered the CM. “You (BJP) are engaging in politics. Not only in Karnataka, there are sugarcane dues in Maharashtra and Uttar Pradesh to the tune of Rs 3,773 crore and Rs 9,154 crores. Why don’t you make a similar demand to your party run government in Maharashtra, ‘’ the CM askedd him angrily.
This led to a heated argument and when the government did not budge, members of the BJP trooped into the well of the House while JD(S) members led by their leader H.D. Kumaraswamy walked out.
Speaker Kagodu Thimmappa appealed to BJP members to resume their seats but in vain, forcing him to adjourn the House for the day. Earlier Sugar Minister H. S. Mahadev Prasad tabled a detailed reply in the Assembly on the issue.
Only 4 sugar factories paid farmers
Out of 60 sugar factories in Karnataka, only four have paid farmers the price fixed by the state government: Rs 2,500 a ton as against the fair and remunerative price (FRP) of Rs 2,200 a ton announced by the Union government for 2013-14.
In November 2014, the state government issued notices to managements of 56 sugar factories, asking them to pay farmers according to the rules. The notices were issued after the Karnataka High Court upheld the Karnataka Sugarcane (Purchase and Supply Control) Act, 2013, which enables the state government to fix sugarcane prices higher than the FRP fixed by the Union government.
More than half the number of sugar factories, however, suspended cane crushing operations for the current sugar season (October 2014 to September 2015) expressing their inability to cough up Rs 1, 803 crores as arrears to farmers. The managements chose not to crush the cane as the cost of production was around Rs 32 a kg as against the realisation of Rs 27 a kg at a time when the state witnessed a 23 per cent growth in production of sugar in 2013-14.
Martihibbe Gowda stages walkout
Janata Dal (Secular) member, Mr Maritibbe Gowda staged a walkout protesting against the failure of the state government to help sugarcane growers who are facing a deep crisis. In the Legislative Council on Tuesday, Mr Gowda urged the government to restructure loans borrowed by cane growers in view of the delay in repayment of dues by sugar mills resulting in sealing and seizure of sugar stocks by the government.
However, Co-Operation and Sugar Minister H.S. Mahadevaprasad claimed that the repayment of loans to co-operative banks by sugarcane growers had been around 95 per cent to 98 per cent in almost districts. The apex banks were advancing loans to farmers immediately after repayment within 12 years.
Once it was done, cane growers were eligible to get fresh loans at zero per cent interest. In view of this, the government does not feel the need for restructuring loans given by co-operative banks, he said. Dissatisfied with the reply, Mr Gowda shouted slogans against the state government and walked out of the House.
