The Hindu : Karnataka News : Sops fail to move cane growers

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Tuesday, Feb 19, 2008
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Karnataka

Karnataka

Sops fail to move cane growers

Staff Reporter

Farmers have decided to intensify struggle

BANGALORE: In a bid to address the problems of sugarcane growers in Karnataka, the State Government on Monday announced steps for the 2007-2008 sugar year even as the agitating cane farmers have threatened to intensify their struggle terming the short-term policy as “inadequate”.

Among the measures announced included offering an additional sum of Rs. 125 a tonne above the Statutory Minimum Price (SMP) fixed by the Union Government at Rs. 811 for a nine per cent sugar recovery, besides continuing crushing of cane by the sugar mills without stoppage.

The Government will also pay transport subsidy of Rs. 2 a tonne for every km beyond 50 km.

This will be applicable both within and outside the State, a measure that has been initiated to facilitate crushing of unregistered cane by other mills.

The announcement comes in the wake of farmers’ protest and demand seeking increase in price for the cane.

A release from Secretary, Department of Commerce and Industries, Arvind G. Risbud said that the present situation was a result of excess sugar production and lesser quantities of sugar sales at lower rates than anticipated, and that the Government was keen to avoid the repetition of instances of the past where standing cane crop could not be crushed and was left to be burnt.

The Government has also released Rs. 7 crore towards the payment of Rs. 25,000 per hectare for cane left uncrushed, a commitment that Government had made during 2006-2007.

While Bijapur gets Rs. 5 crore, Chamarajnagar and Bagalkot will receive Rs. 1 crore each.

Assistance to factories

The Government will also help improving the liquidity of sugar factories to enable them to clear cane price arrears of the past year as well as price to be paid for the current year under a Union Government’s scheme of extending financial assistance to sugar factories. The release said that a meeting with all the bankers have been held already, and that Government will ensure that loans eligible under the scheme would be used exclusively for cane payments. Canara Bank has been identified as the nodal bank in this regard, it added.

Meanwhile, the sugarcane growers have said that the additional sum of Rs. 125 a tonne above the SMP announced was not satisfactory as they had been demanding Rs. 200.

“We are not happy with the additional sum announced by the Government as it is inadequate compared to the rising input cost. Representatives of sugarcane farmers would meet in a couple of days to chart out the next course of action as the sum announced is inadequate. The Government can bridge the shortfall of Rs. 75 from its resources,” said the State president of Sugarcane Farmers’ Association Kurubur Shanthkumar at a press conference here. He, however, welcomed the decision of the Government to provide Rs. 2 tonne for every km, which would help a number of unregistered growers in the State.

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