Bannari Amman urges government for revenue sharing

This kind of practice is followed in other countries

 Bannari Amman Sugars Limited, Nanjangud, which is in the eye of a controversy regarding the payment of arrears to sugarcane growers, has urged the State government to come out with a revenue sharing formula with the cane growers.

Addressing mediapersons here on Tuesday, Bannari Amman Sugars Limited vice chairman V Venkata Reddy said,  they had  written to the chief minister and to Rangarajan Committee that it is willing to share the revenue generated by the individual factories based on actual recovery, and additional amounts on account of by-products. “We are for a fair share to the cane suppliers in the revenue in a transpararent and objective manner,” he said.

According to Reddy this kind of practise is being followed in other sugar producing countries. The implementation of this will provide lasting and right solution to the problem of cane price fixation. “This method is based on scientific lines and the system operates for itself purely on sound economic criteria without any influence from other extraneous factors.

“The government should constitute a committee with the representatives of farmers, factory managements and the Government forthwith. This committee can discuss and finalise the revenue sharing formula, which can be done in a few sittings,” he said.

Second largest producer

There are 600 sugar factories in the country producing 280 lakh tonnes of sugar per annum. India is the second largest producer of sugar next only to Brazil in the world.
The bulk of the sugar produced is consumed in the country, unlike in other sugar producing countries like Thailand, Australia where a major portion is exported, said Reddy.

“The bulk of sugarcane grown now-a-days can be  used for production of ethanol which is an admixture of petrol and diesel. Hence farmers can grow as much sugarcane as they want,” he said.

In Karnataka there are 61 sugar mills out of which 36 are privately owned, 23 in the co-operative sector and two in government sector.

“We are demanding for total decontrol of sugar as right now it is 10 per cent levy and 90 per cent is free market. Only 20 per cent of individuals consume sugar in the country while 80 per cent is bulk consumers like soft drink companies, hotels and others,” he said.

No arrears
“The company has paid sugarcane price of Rs 1900 per ton for 201-11 and Rs 2000 per ton for 2011-12 as finally announced by chief minister. There are no arrears. Anybody can verify the facts from the Commissioner for Cane Development and Director of Sugar, Bangalore, who has the minutes of the meeting of the chief minister in this regard,” said Reddy.

However, a source in the factory told Deccan Herald on condition of anonymity that there are always vested interests especially political, who do not want the control of sugar pricing to go out of their hands.

Bannari Amman Sugar Limited chief executive officer S Audiseshiah, assistant vice president Lingeswaran, general manager V Krishnan and deputy general manager Saravanana were present.