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Even as the Karnataka government struggles to convince sugar mills to clear farmers’ cane payment arrears for 2013-14, the latter have demanded the state take over the mills.
They have also urged Chief Minister Siddaramaiah to immediately ensure recommencement of crushing by the mills. “The discussion over payment of arrears has nothing to do with the commencement of the crushing. Mills are trying to blackmail the government and farmers by delaying crushing. We want the government to ensure crushing commences immediately because the fully grown cane is getting dried and will lose weight,” Kurubur Shanthkumar, president, Karnataka Sugarcane Growers’ Association (KSGA), told Business Standard.
Cane farmers are demanding payment of arrears amounting to Rs 1,803 crore for 2013-14, with 15 per cent interest. Their charter of demands to the state government includes fixation of cane price on an ex-field basis for the current year.
The government has ordered mills to pay farmers the Fair and Remunerative Price fixed by the central government on an ex-gate basis, which will result in the loss of around Rs 300 a tonne, Shanthkumar said. “Last year, many mills had given us undertakings in writing that they would pay ex-field from this year. But, they managed to convince the government to fix it on an ex-gate basis.” he said.
If the government is unable to fulfill its promises made to farmers, we will lay siege to Vidhana Soudha (state secretariat) during the winter session of the state legislature at Belagavi,” he said. For 2014-15, the Centre has fixed an FRP of Rs 2,200 a tonne for recovery of 9.5 per cent and Rs 235 extra for every additional percentage recovery. Based on this formula, mills in Karnataka are bound to pay Rs 2,200-2,950 a tonne, depending on the percentage of recovery, Shanthkumar said.
Of 60 operational mills in Karnataka, only 21 are currently crushing cane, mainly in the southern parts. Those in the north have either suspended or have not commenced crushing for this season. KSGA has also urged the government to ensure the mills strictly adhere to the Rangarajan committee recommendations on sharing of profits at the end of the year. The recommendation is that mills share 70 per cent of the profit from sugar production and 75 per cent from the revenue generated from sale of byproducts, he said.
There are two million farmers engaged in the cultivation of cane in Karnataka.
A meeting convened on Tuesday by the minister for cooperation and sugar, H S Mahadeva Prasad, with mill owners, representatives of the South Indian Sugar Mills' Association (Sisma) and officials remained inconclusive.
"We have discussed the matter in detail. On behalf of mills, we have put forth our proposals before the government. The matter will be discussed with the chief minister. We are waiting for him to take a decision," said Sisma president Pawan Kumar.
