Karnataka govt assures cane growers on payment of dues

Karnataka government today said it would settle by July-end outstanding dues worth Rs 923 crore payable to sugarcane farmers for 2013-14 marketing year.
The state government would also lead an all-party delegation to the Prime Minister for discussing the crisis faced by the cane growers and cash-starved sugar mills.
Sugar marketing year runs from October-September.
Winding up the debate on farmers' suicide and payment of dues to cane growers in the Assembly, presently holding its monsoon session here, Sugar Minister H S Mahadeva Prasad said Rs 923 crore had to be paid by the mills to farmers for the year 2013-14.

Keeping the farmers' interest in mind, the government would directly pay Rs 100 per tonne to farmer's account before July 10.
Another Rs 100 per tonne has to be paid by mills to farmers by July 31 and if they fail to do so government will pay it by selling the sugar seized from them, he said.

Steps would also be taken to recover the amount paid by the government on behalf of the mills.
The Karnataka government had announced Rs 2,500 per tonne for 2013-14 with Rs 150 as incentive and Rs 100 as tax exemption per tonne and paid Rs 1,173 crore to farmers.

Intervening, Chief Minister Siddaramaiah said by paying Rs 100 per tonne by July 10 and by making sure that another Rs 100 per tonne is paid by mills before July 31, "we will make sure that all dues for the year 2013-14 are cleared."
On the dues of Rs 2,120 crore to be paid by mills to farmers for the year 2014-15, he said central government had fixed FRP (Fair and Remunerative Price) of Rs 2,200 per tonne, of which companies have paid Rs 1,800 and the remaining Rs 400 has to be paid by them.
Siddaramaiah said the payment of dues has been an issue all over the country this year as companies have expressed their inability to pay FRP.

Stating that he had met Union Minister Ram Vilas Paswan on this issue, the Chief Minister said he would lead an all-party delegation to the Prime Minister seeking central government's assistance in paying dues to the farmers.
"I'm also planning to meet the Chief Ministers of all the cane growing states in an effort to find solution to the issue," he added.