It has not been all sugar and spice for sugarcane growers in the State. Sugar factory owners have not paid them their dues for over a year now, despite an order by the High Court of Karnataka.
The farmers are an angry lot as repeated promises and deadlines set by the government for payment of the dues — amounting to around Rs.1,800 crore — have been flouted by factories. Farmers’ leaders allege that the issue has exposed the influence of the sugar lobby on the government, especially since families of 27 prominent elected representatives, including three Ministers and legislators from various parties, own sugar factories.
The trouble over non-payment of dues had created unrest among sugarcane growers in 2013. A protesting farmer committed suicide outside the Suvarna Vidhana Soudha at Belagavi when the legislature session was on.
As of now, of the 60 sugar factories in the State, only four have paid the full State Advisory Price (SAP) of Rs. 2,500 a tonne, while others have paid only Rs. 2,100 a tonne. They also ignored the latest deadline of December 31, 2014, to pay half the dues.
The government has been hinting that it is “helpless”, saying that any tough measure, such as closure of the defaulting factories when sugarcane crushing is on, would harm the interests of farmers as their standing crops on about 4.20 lakh hectares would dry up.
The Karnataka Sugarcane Growers’ Association president Kurubur Shanthakumar alleges that the government is trying to escape from its responsibilities by citing the ongoing crushing season. “The government can always takeover the defaulting factories and run them, as it has given them various sops (exemption from VAT, purchase tax and road tax),” he said.
Mr. Shanthakumar alleges that political leaders are running sugar factories, and this has resulted in a conflict of interest in the administrative machinery.
Excise Minister Satish Jarkiholi, whose family owns a sugar mill, recently said that sugar factories are not “charity institutions” to pay the SAP. Mr. Shanthakumar cites this as conflict of interest.
The State Committee of the Sugarcane Growers’ Association is meeting in Kalaburgi on Tuesday to decide the next course of action.
With the government set to introduce drip irrigation scheme for sugarcane cultivation, which is expected to double the yield, farmers fear that the crisis will only deepen if the government fails to take a stern stand on pricing.
Some Quotes
The sugar lobby has a strong hold on the government as the families of several prominent politicians are running the sugar factories in the State. The government should show political will and take over defaulting sugar factories as it has given them several sops. -Kurubur Shanthakumar, president, Karnataka State Sugarcane Growers’ Association
The problem is due to a crash in sugar prices owing to a reduction in global demand. The fair and remunerative price for sugarcane has been fixed with an assumption that sugar prices will rule at an average of Rs. 3,100 to 3,400 a quintal. But, sugar prices have dipped to around Rs. 2,500. The sugar factories are finding it difficult to cope with the situation, which can improve only if steps are taken to discourage sugar imports and encourage exports. - Pawan Kumar, president, South Indian Sugar Mills’ Association.
