STOCK MARKET BSE NSE

State Threatens to Seize Factory Sugar to Pay Farmers

Shettar wanted the government to pay Rs. 2,500 a tonne of sugarcane as promised and then recover the amount from sugar factories later.

Published: 24th June 2014 07:48 AM  |   Last Updated: 24th June 2014 10:58 AM   |  A+A-

23BN4

BANGALORE: Threatening tough measures against sugar factories that have failed to pay a fair remunerative price (FRP) to sugarcane growers, the state government has decided to confiscate the factories’ stocks and sell them to clear growers’ dues.

The issue rocked the Legislative Assembly on the first day of the session on Monday, with the Opposition BJP staging a dharna demanding that the government immediately pay the Rs. 2,500 a tonne it had promised. Leader of the Opposition Jagadish Shettar accused the government of colluding with sugar factory owners, “some of who are Congress leaders and ministers”.

Shettar wanted the government to pay Rs. 2,500 a tonne of sugarcane as promised and then recover the amount from sugar factories later. 

Sugar Minister H S Mahadevaprasad replied that sugar factory owners have approached the High Court against the Rs. 2,500 rate fixed by the state. The court has issued a stay order on the rate. However, the HC has stated that it has no objection to the fair remunerative price of Rs. 2,100 a tonne, he added.

Of the 60 sugar factories, 18 haven’t paid dues of Rs. 503 crore even after being served notices, Mahadevaprasad said.

The state government has issued directions to Deputy Commissioners of the districts concerned to confiscate the sugar stocks in these factories and clear the dues of cane growers, the minister said.  “We will confiscate the assets of these sugar factories if there are no sugar stocks on their premises.”

However, the reply failed to convince the BJP members.  They staged a dharna in the well of the House demanding that the government keep its promise.

Deputy Speaker Shivashankar Reddy, who was in the chair, adjourned the House for the day, amid protests from BJP leaders. 

More from Bengaluru.

Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

IPL_2020
flipboard facebook twitter whatsapp