Warning of a larger crisis, former Chief Minister and JD(S) leader H D Kumaraswamy today demanded that the state government pay sugarcane farmers their dues from its exchequer and then recover it from mill owners.
Participating in the discussion on farmer suicides and payment of dues to cane farmers in the Assembly, he said, the government should immediately release money as cane growers are in no position to wait any more.
Government can later recover this money by selling sugar seized by it from mills, he added.
He expressed fears about the possible crisis that might emerge as about 600 lakh metric tonnes of cane would be ready for crushing by September compared to 400 lakh MT last year.
"What will you do if mills don't agree to crush about 600 lakh metric tonnes of sugarcane that is expected for crushing by September?" he questioned.
Responding to JD(S) MLA Y S V Datta's comment that government itself has to pay about Rs 3,000 crore dues to farmers as mills have failed, Chief Minister Siddaramaiah asked, "does government have akshayapatra?"
Stating that government would take responsibility of cane dues repayment for 2013-14, he said "for 2014-15 price of Rs 2,200 per tonne was fixed by the central government, mills have paid Rs 1,800 per tonne, so Rs 400 per tonne is yet to be paid."
Siddaramaiah also said he plans to take an all party delegation to the central government on the issue.
Intervening, leader of the opposition Jagadish Shettar said it has been a practice that whatever be the price fixed by the union government, the state always adds incentive on its part.
Kumaraswamy said the Uttar Pradesh government was giving Rs 400 per tonne as an incentive in addition to Rs 2,200 fixed by the Centre.
