The State government is all set to amend the Karnataka Sugarcane (Regulation of Purchase and Supply) Act, 2013 to plug loopholes in the law and enable its effective implementation.
Minister for Cooperation H.S. Mahadev Prasad, who was given the Sugar portfolio recently, told presspersons here on Thursday that amendments to the Act would be placed in the coming legislature session. “Although the Act has incorporated some recommendations made by the Rangarajan Committee appointed by the Union government to advise on sugar decontrol, it has certain loopholes because of which we are unable to implement it effectively,” he said.
The Karnataka Sugarcane Control Board, set up under the Act, had directed sugar factories to pay Rs. 2,500 a tonne to sugarcane growers. While three of the 69 factories have paid the fixed price, others obtained a stay from the Karnataka High Court on the grounds that the price fixed by the government was too high.
“The stay is on till July 30, and we will try to get it vacated,” the Minister said.
Following the stay, the Board issued another notice to sugar factories, directing them to pay Rs. 2,100 a tonne according to the fair remunerative price (FRP) fixed under the Union government’s Sugar Control order.
“The factories have to pay this price within 14 days after the growers supply the stock, failing which they will have to pay it with an interest of 15 per cent. The notice was issued on May 31 and the factories have a week’s time to reply,” the Minister said.
Mr. Mahadev Prasad said 12 factories had made payments at Rs. 2,100 a tonne. The remaining units had paid in the range of Rs. 600 to Rs. 1,700 a tonne. The interest would be calculated on the difference amount, he said.
