Cane from state is sold outside

Shortages force mills across the border to buy sugarcane from Karnataka

The competition among mills to source sugarcane has reached new heights following a shortage of cane across the country. Many mills in Maharashtra and Goa have resorted to buying cane from farmers in the border villages of Karnataka thereby causing loss to mills in the border areas.

While there is no compulsion on the part of farmers from supplying cane to the mill they want, mills in border areas like Bhagyalaxmi Sahakari Sakkare Karkhane in Khanapur, Indian Sugars and Refineries Ltd in Hospet are facing a shortage of cane due to diversion of cane from their regions, sugar industry sources said.

Sugarcane Control Order stipulates that sugarcane grown within 15 kms of any mills should be supplied to a respective sugar mill. However, due to a shortage of cane this year, mills from neighbouring Maharashtra are wooing farmers of Karnataka to divert cane to their mills by paying higher price.

“There must be some discipline among mills as well as farmers in their business. Unless farmers supply cane to mills in their region, mills cannot get enough cane,” sources said.

In order to ensure adequate supply of cane for their mills, a larger number of sugar mills in Karnataka have approached the commissioner for sugarcane in the state to widen the distance between two sugar mills from the present 15 kms to 25 kms. They have also requested the state government not to permit new mills in the state within 25 kms of an existing mill anywhere in the state.

A K Monnappa, commissioner for cane development and director of sugar in Karnataka, said, “We have received complaints from mills regarding diversion of cane from Karnataka to Maharashtra as well as mills within the state. We have directed the mills to maintain discipline and work mutually without affecting the crushing operations of other mills. We are also thinking on what action to be taken against erring mills.”

He said there is a need for mills to focus on cane development rather than diverting cane from other mills. The government has been giving a lot of incentives for cane development in the state, he said.

He said the state government had undertaken satellite studies in northwestern and northern Karnataka and as per the study report there is a provision to increase the distance between two mills. “The state government is aware of the situation and without the approval of the Central government we cannot increase the distance between the two mills,” he said.

The main intention is to discourage setting up of new mills in the state, he said adding there are over 30 applications pending before the government for sanctioning new mills in the state.

On the proposed agitation by farmers in front of Vidhana Soudha on January 19, Monnappa said the government was open to considering their main demand for introducing a state advisory price (SAP) system.