Sugar industry says not against support price hike

President of Karnataka unit of South Indian Sugar Mills' Association Jagadeesh Gudagunti has denied sugar mills opposed the enhancement of support price to sugarcane.

Reacting to reports in the section of the media that the sugar factories managements opposed enhancement of minimum support price to Rs 160 per tonne, Gudagunti said the association in fact welcomed the decision of the government and congratulated the governor for the decision.

"The meeting convened at Vidhana Soudha in Bangalore on March 8 with chief secretary Sudhakar Rao in the chair, discussed the modalities of releasing the announced amount for payment to sugarcane growers. The association expressed its inability to pay the statutory minimum support price stipulated by the Centre as there is a sharp decline in the price of sugar in the international market. The factories are forced to borrow for paying the minimum support price to sugarcane growers and it was not possible to pay more than the minimum support price. This was explained at the meeting and the government's gesture of lending a helping hand was lauded," Gudagunti explained.

He said the association has asked the chief secretary to release arrears of Rs 100 per tonne at the earliest to enable factories to disburse it to farmers. The association also pressed for the waiver of purchase tax and payment of transport cost arrears for the crushing season.

The managements are keen to safeguard the interests of farmers, Gudagunti asserted.