No more incentives this year: Karnataka Sugar minister HS Mahadev Prasad

Bengaluru: Sugar minister H.S. Mahadev Prasad on Tuesday ruled out payment of an incentive of Rs 200 a ton of sugarcane to farmers during the current season because of the decline in prices of sugar in the domestic market.

Replying to Mr Ramachandra Gowda (BJP) in the Council, he said Rs 350 crores was released to deputy commissioners of sugarcane-growing districts to help them deposit Rs 100 a ton in the bank accounts of farmers. Another installment of Rs 100 a ton would be released before July 31 by auctioning sugar seized from 38 factories or from the state exchequer.

Already, several factories had expressed their inability to pay Rs 2,300 a ton, the Fair and Remunerative Price (FRP) fixed by the Union Government for the current season in the wake of a steady fall in price of sugar.

“Our first priority is to clear all dues for 2013-14. The government has no plans to give Rs 200 a ton as incentive to farmers in the coming season. Nothing will be decided till an all party delegation meets PM Narendra Modi and requests him to intervene and bail the state out,” he added.