CM promises action against errant sugar factories

CM promises action against errant sugar factories

Chief Minister Siddaramaiah on Tuesday assured the Legislative Assembly that penal action would be taken against managements of sugar factories which do not pay the Fair and Remunerative Price (FRP) of Rs 2,100 per tonne of sugar cane to farmers. He also said that the subsidy dues from the government would reach the farmers in three days.

Speaking in the Assembly amid the BJP members continuing their overnight dharna in the well of the House, Siddaramaiah said the government was committed to paying a subsidy of Rs 150 per tonne over and above the State Advisory Price (SAP) of Rs 2,500 per tonne of sugar cane.

The government had already released subsidy amount of Rs 398 crore to farmers and the remaining Rs 176 crore had been approved by the finance department.

The money would be released to the deputy commissioners, who in turn will credit it to farmers, the chief minister said.

Siddaramaiah pointed out that sugar factories had obtained a stay on SAP. However, they had no option but to pay  the FRP of Rs 2,100 per tonne as fixed by the Centre.

“Recovery action, including seizure of sugar, attachment of properties and filing of criminal cases against the managements of sugar factories who do not pay the FRP, will be taken up immediately,” Siddaramaiah said.

The government will also strive to get the stay on the SAP vacated, he added. The factories owed sugar cane arrears amounting to Rs 3,111 crore.

“It is the government’s responsibility to recover the dues. We will recover them along with interest from factories, irrespective of their affiliation to political parties,” Siddaramaiah said.

Sugar Minister H S Mahadeva Prasad said Water Resources Minister M B Patil would hold a meeting of sugar cane farmers and factory owners in Bijapur on Thursday to resolve local issues pertaining to payment of sugar cane dues.

Following Siddaramaiah’s assurance, the BJP members withdrew their dharna.

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