Bengaluru: The state government is preparing the guidelines for e-auctioning of sugar seized from private sugar mills for non-payment of Rs 100 per tonne as promised by the government for 2014-15.
This became necessary as no bidders came forward to buy sugar seized from eight factories in Bagalkot district and 12 from Belagavi district. The government’s efforts to woo local buyers to purchase the seized sugar failed.
The deputy commissioners of the two districts are busy preparing the guidelines to dispose of the sugar stocks through e-auctioning.
“The process of e-auctioning is likely to start within the next two or three days. We are optimistic of raising Rs 300 crore, which will be used to pay all the sugarcane farmers soon,” Cooperation and Sugar Minister H.S. Mahadeva Prasad told Deccan Chronicle.
He said that the price of sugar in the open market has gone up from Rs 1,900 to Rs 2,500 per quintal. This has given some hope for the government as sugar prices had hit the rock bottom last month, because of a glut in the market across the country.
“We want to make use of the present situation and dispose of the seized sugar stocks before the prices plummet again. I am optimistic that the prices may go northwards with the coming festival season, as people buy sugar in large quantities to prepare sweet meats during festivals. I don’t have the figures for sugar stocks being put out for auctioning as I was on a tour of Kollegal,” he noted.
Mr Mahadevaprasad said the government had initially planned to clear the second installment from the state exchequer, but changed its decision to recover the money from auctioning of sugar seized from private mills. It was true that the government could not pay the arrears to farmers for over three months because of the circumstances beyond the control of the government. But now, the government has hastened the process of auctioning of sugar to recover Rs 300 crore which would be paid to cane farmers at the earliest.
Sources in the sugar ministry said that it might take some more time for the government to make payments for procedural delays. “Getting a good price for the produce cannot be guaranteed, as the bidders would try to bargain, fully knowing that the auctioning was being carried out by the government.
“Besides, sugar cannot be kept for a long period as its quality would deteriorate if it is not sold at a right time. Also, the old stock has to be cleared before the arrival of new stocks from November. The government is in a great hurry to dispose of the stock so that it can clear the second and final installment to farmers,” he said.
