Farmers demand uniform cane price policy in Karnataka

Sugarcane growers in Karnataka have urged the state government to adopt a uniform price policy for the state.

"The government, in consultation with sugar mills, has fixed a dual cane price, separate for northern and southern Karnataka. The government has asked 45 factories in north Karnataka to pay an additional amount towards harvest and transport cost to farmers. In south Karnataka, 12 mills have been told to pay only the cane price, while harvest and transportation cost is borne by the farmers," Kurubur Shanthakumar, president, Karnataka Sugarcane Growers' Association (KSGA), told Business Standard.

As a result of the dual pricing policy, farmers in southern Karnataka would incur a loss of Rs 500 a tonne towards harvest and transportation, he said.

However, mills in northern Karnataka pay an additional amount towards the cost of harvest and transport to farmers and buy the cane at their fields. KSGA has also demanded the government direct mills to pay the cane arrears for 2011-12 and 2012-13 amounting to Rs 800 crore immediately.

Shanthakumar said many sugar mills were not adhering to the payment of Rs 2,650 a tonne fixed by the state government for 2013-14. Most of the mills are waiting for implementation of the Rs 6,600-crore loan package announced by the central government, he said.