Karnataka: Notices to sugar factories to clear dues
State govt will serve notices on sugarcane factories to clear Rs 3,818 crore of arrears
Mysuru: The state government will serve notices on sugarcane factories to clear Rs 3,818 crore of arrears payable to sugarcane growers within one to two weeks.
Minister for sugar and co-operation, Mr H.S. Mahadevprasad said the state had seized six sugarcane factories which had failed to clear arrears in the previous year and had auctioned the sugar to pay arrears to farmers. Some factories in the North Karnataka region have claimed they cannot pay the stipulated price as sugar production is less and have obtained a high court stay.
Till May 31, as many as 63 sugarcane factories have produced 49.63 lakh metric tons of sugar from 448.77 lakh MT of sugarcane.
“Sugar rates have dropped to '10 creating a crisis in the industry. We met the central minister in this regard along with the Chief Minister on April 16. We have urged the fixing of a stable price, increase in exports and creation of a buffer sugar stock.We are even contemplating ‘crop leave’ for a year, he said.
