Karnataka sugarcane farmers to get Rs 100 per ton promised by CM soon

BELAGAVI: Sugarcane farmers are set to get the first installment of Rs 100 a ton of cane, as promised by Chief Minister Siddaramaiah, soon following a decision taken by the top brass of the department of commerce and industry to issue an order for release of the amount.

Chief Minister Siddaramaiah made a commitment at the Legislative Assembly that the government would pay the first installment of Rs 100 a ton to each farmer before July 10 and the second instalment of Rs 100 before July 31. After issuance of the government order (GO), the same would be circulated to departments of agriculture, commerce and industries and co-operation for 'postponement of expenditure' in order to make available around Rs 450 crores for disbursal before July 10. Diversion of funds would be made temporarily in order to clear all dues to sugarcane growers before July 31. Around 7.4 lakh tons of sugar seized from 28 factories had become the asset of the state government which would be auctioned to recover the money to be given to farmers.

Official sources said sugar comes under agriculture, commerce and industries and co-operation departments and the commerce and industries department but the GO had to be issued by department of commerce and Industries. Subsequently, it would be circulated to secretaries of all those three departments to workout details of the funds to be diverted for payment to sugarcane growers. The sources pointed out some departments like fisheries and commerce and Industries would require money during December-January to spend on subsidy or other programmes.

That portion of money would be drawn from those departments and would be used to give it to farmers. Once the government gets through auctioning of the seized sugar, the same would be returned to those departments. “There is no dearth of funds. The government will meet its commitment by adjusting funds reserved for subsidies,” sources added. Sources said department of finance and planning would not come directly into the picture and would be done through the department of commerce and industries. One week time was sufficient for the government to pay the first instalment of dues to sugarcane growers. “We are optimistic of selling sugar seized from private sugar factories in the next 10-15 days to pay Rs 923 crores due to cane growers for the year 2013-14,” sources added.