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Panel to be set up to discuss model on revenue sharing

Sugarcane growers, factory owners meet chief minister
Last Updated 31 August 2012, 18:33 IST

The State government will constitute a panel to discuss the feasibility of adopting a model for sharing the revenue generated by sugar factories with cane growers.

A decision to this effect was taken at a meeting chaired by the Chief Minister Jagadish Shettar with sugarcane growers and sugar factory owners of eight districts in Bangalore on Friday.

Briefing reporters after the meeting, Agriculture Minister Umesh Katti said the panel will comprise senior government officials, experts and representatives from sugarcane farmers associations and sugar factory managements.

The panel will try to find a permanent solution to the problem of cane price fixation and end the annual standoff with farmers over the issue. The model is based on the premise that revenue generated by the sugar factories on actual recovery and on account of by-products is shared with cane growers.

Earlier, Karnataka Sugarcane Growers’ Association President Kuruburu Shanthakumar sought that price of sugarcane be fixed at Rs 3,000 per tonne with a provision to pay an arrear Rs 500 per tonne for purchases made during 2010-11 and Rs 100 per tonne for purchases made in 2009-10.

Week’s time

He also sought that the sugar factories pay all dues to farmers within a week. Karnataka Raitha Sangha President Puttanaiah said his organisation was planning to picket Vidhana Soudha if the demands of sugarcane farmers were not met by September 4.

Replying to queries, Katti expressed concern that the State may not be able to meet its food grain target of 1.32 lakh tonnes set for the fiscal 2012-13. He pointed out that while normal sowing should have taken place in 42 lakh hectares, sowing has been completed in 22 lakh hectares and crop loss had been reported in 20 lakh hectares. Bijapur, Dharwad, Gadag, Haveri and Belgaum had reported 40 per cent below average rainfall.

He said the State had fertiliser stock worth Rs 1,163 crore and it was being supplied to farmers through various co-operatives. He said the government would take strict action if fertiliser was sold to farmers above maximum retail price.

Earlier, as soon as the meeting started, some farmer representatives pointed out that the intimation about the meet had reached them very late.

Legislators Suresh Gowda (Nagamangala constituency) and A B Ramesh Bandisiddegowda objected to their names being left out in the welcome address by Commerce and Industries Secretary Ajay Jha. The officer apologised for his lapse. Shettar also pacified the legislators.

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(Published 31 August 2012, 18:33 IST)

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