The State government on Thursday sought a subsidy of Rs 900 crore from the Centre for sugarcane factories so as to enable them pay the Fair and Remunerative Price (FRP) of Rs 2,200 per tonne of sugarcane to farmers.
A proposal to this effect was made by Chief Minister Siddaramaiah to Union Food and Civil Supplies Minister Ramvilas Paswan here on Thursday.
Siddaramaiah said sugarcane factory owners are not in a position to pay the FRP due to fall in sugar prices. The gap between FRP and sugar prices is Rs 400 per tonne and the State government has asked the Centre to bear it as subsidy to the factory owners, Siddaramaiah said. An official said the total subsidy that needs to paid to factory owners for the year 2014-15 to bridge the gap would be Rs 900 crore.
Paswan said he would place the State government’s proposal before the Prime Minister and the Union Finance Minister.
He said the Centre has already met several demands of factory owners, including increase in the import duty on sugar from 15 to 40 per cent and Rs 6,000 crore interest-free loans. The State’s share of interest-free loans stands at Rs 900 crore, he said.
Meanwhile, the State Sugar Cane Growers Association has threatened to stage a dharna in front of the Suvarna Vidhana Soudha in Belagavi if the sugar factories fail to clear their dues by June 29. The monsoon session of the legislature is scheduled to begin there on that day.
Deccan Herald is on WhatsApp Channels| Join now for Breaking News & Editor's Picks