Rs 1,210 crore dues! Belagavi farmers threaten legal battle against sugar units

BELAGAVI: With unpaid dues of sugarcane growers’ from managements of sugar factories continuing to spiral, leaders like Shivanand Patil and Basangouda Patil have threatened to launch a legal battle against these managements for recovery of arrears to the tune of Rs 1210 crores.

A majority of sugarcane growers, affected by natural calamities during last three years, failed to harvest a good yield and suffered massive financial losses.

Despite buying sugarcane for crushing, managements of most of factories are yet to pay the amount due to growers and held back their dues citing unfair reasons, while the government has failed to act because of pressure from the managements.

In all, 65 sugar factories, including 43 private ones most of which are run by influential political leaders, crush a major portion of sugarcane grown in various parts of Karnataka.

According to sources, these factories crushed 3.83 crore tonnes in 2013-14 but did not settle bills of farmers. The managements paid Rs 9305 crores in installments during that fiscal but are yet to pay pending dues of Rs 273 crores.

Sources said farmers were able to supply whatever sugarcane they could cultivate to factories until June this year commencing April 2015. A total of 3.76 crore tonnes of cane was crushed by factories in 2015-16 fiscal for which they were supposed to pay Rs 10143 crores to cane growers.

Under pressure by growers, the factories paid Rs 9307 crore and held back their dues of Rs 836 crores. Protests for pending arrears continue while several growers ended their lives as they were unable to repay debts since 2013-14.

Under pressure from political heavyweights who own most of these factories, the government seems reluctant to initiate action to ensure payment of arrears.