‘Action against sugar factories after they reply to notice’

The State government, which had given an ultimatum to sugar factories for non-payment of the stipulated price of Rs. 2,500 for a tonne to sugarcane growers, has now decided to wait till the factories replied to the government’s notice before initiating action.

Minister for Co-operation H.S. Mahadev Prasad, who is also a member of the State Sugarcane Control Board, told presspersons on Tuesday that sugar factories had sought more time to pay the growers.

He said it was inevitable for the government to initiate civil and criminal proceedings against the factory owners if they failed to pay the farmers’ dues.

Of the total due of Rs. 9,247.71 crore (as on April 15, 2014), Rs. 3,357.56 crore was yet to be paid. “We have appealed to the factories to clear this along with last year’s arrears of Rs. 34.15 crore (a total of Rs. 3,391.71 crore) to the growers at the earliest or face action,” he said.

Sugar factories had sought time to make the payment as a stock of 26 lakh tonnes of sugarcane was still lying unsold in their godowns, the Minister said.

Replying to queries, Mr. Prasad said only 14 of the 69 sugar factories came under his purview. “The government has done whatever has to be done legally. The factories have been issued notices through the respective deputy commissioners to make the payment within one week. The government would wait and see the action or reply of the factories, before taking a decision on the course of action,” he said.

According to the rules, the government could lodge criminal cases against sugar factory owners, seize the sugar stock, auction it and make payment to farmers, he said.

Crop loan

The Minister said the department planned to disburse crop loans totalling Rs. 7,559 crore to farmers in 2014-15 through co-operative institutions.

Last year, co-operative institutions disbursed about Rs. 6,000 crore, benefitting over 2,19,515 farmers.

Zero per cent interest

“Over 90 per cent of the crop loan disbursed last year was on zero per cent interest,” he said. For 2014-15, the maximum limit for availing of zero per cent interest short-term crop loan had been fixed at Rs. 3 lakh, he said, and added that more than 25 lakh farmers were expected to avail themselves of the benefit.