Sugar factories in Karnataka that were given a deadline by the government to start crushing by Sunday have decided to comply with the directive.
In a press release on Saturday, the Karnataka chapter of the South Indian Sugar Mills Association said the decision was taken after the government’s assurances “keeping in mind the interests of sugarcane farmers and the survival of sugar industries.” The government recently asked factories to start crushing by November 30 after paying Rs. 2,100 a tonne as old dues to farmers. They had been given the leeway to pay the remaining Rs. 400 out of the fixed Fair and Remunerative Price of Rs. 2,500 a tonne in a staggered manner. The government had also extended tax concessions (road cess, purchase tax and VAT) to the factories for three years to help clear dues, following a SISMA plea.
