Karnataka

Mills challenge sugarcane’s minimum support price

Pinterest LinkedIn Tumblr

sugarcane

BANGALORE: The Karnataka high court on Tuesday ordered notice to the state government in response to a petition filed by sugar mills, challenging a directive asking them to pay sugarcane growers Rs 2,500 per tonne.

Justice AS Bopanna, who heard the petition filed by South India Sugar Mills Association and two other affiliate mills, adjourned the hearing to December 11 asking the government to file its objections .

The association claimed the November 23, 2013 order of the Karnataka State Sugarcane Control Board asking mills to pay Rs 2,500 per tonne is far in excess of the Rs 2,100 fair and remunerative price (FRP) fixed by the Union government on February 20, 2013 for the 2013-14 crushing season.

The petitioners said the state board doesn’t have the power to fix FRP and the state cannot insist payment at the beginning of the crushing season. They claimed that any hike should be on the basis of revenue sharing and only after assessment of revenue.

The petitioners also stated that in case of a conflict, the directive of the Union government will prevail over that of a state government.

The petitioners sought the court’s intervention, saying the authortities are issuing threats of penal action, including cancellation of licence if the farmers are not paid at the rate. They also said sugar mills across the country suffered huge losses on account of non-realization of the amount in the last season due to a higher FRP in 2012-13, and also owe farmers over Rs 4,000 crore.

They fear this year sugarcane production may be more and there’s every likelihood of a fall in prices which would hit them hard.

Directive to chief secretary

A division bench headed by Chief Justice DH Waghela directed the chief secretary to consider a representation by AC Chandrashekar, a former LIC agent. The petitioner submitted a representation to the chief secretary, requesting him to arrange for payment of dues by sugar factories in Karnataka to farmers with 15% interest to prevent suicides.

The petitioner submitted that up to March 2013, factories owed growers in Karnataka approximately Rs.1705.4 crore.

Farmers’ plea

Justice AS Bopanna will take up on Wednesday the petitions filed by farmers challenging the state government decision to assign 81 villages in Davanagere district to two sugar factories owned by senior Congress leader and horticulture minister Shamanur Shivashankarappa.

The petitioners stated that since the Bhadra Sahakari Sakkare Karkhane Niyamit in Doddabathi village stopped crushing, the area was declared a free zone, allowing farmers to sell their sugarcane to factories of their choice.

Write A Comment