Action sought against sugar factories refusing to comply with govt. order on payment of incentive to farmers
A Karnataka legislator urged action against seven sugar mills in south Karnataka for refusing to pay ₹100/tonne incentives to farmers. While most mills complied, defaulters challenged orders and delayed payments. The government may cancel licences, contest court stays, and ensure direct transfers to protect farmer interests.
Congress MLC Dinesh Gooli Gowda has urged Chief Minister Siddaramaiah to crack the whip against sugar factories in south Karnataka that were refusing to comply with the government’s directions to pay an additional incentive to sugarcane farmers.
In a letter addressed to Mr. Siddaramaiah, Deputy Chief Minister D.K. Shivakumar, Minister for Sugar Shivanand Patil and Chief Secretary Shalini Rajneesh, Mr. Gowda said the State government had announced an incentive of ₹100 per tonne of sugarcane to the farmers during the crushing season 2025-26 to safeguard the economic interests of the farmers.
But, seven out of the about 80 sugar factories in the State were “not only challenging the authority of the State government”, but also “obstructing administrative processes” with regard to the payment of the incentive, he alleged.
While 73 factories in north Karnataka have complied with the government’s directions and made timely payment to the farmers, the seven major sugar factories in the districts of Mandya, Mysuru, Hassan and Chamarajanagar had challenged the Government Order in the court.
Against the 576.47 lakh tonnes of sugarcane crushed across the State this season, the farmers in north Karnataka had received ₹100 per tonne that includes ₹50 from the government and ₹50 from the sugar factory. But, the sugar factories in south Karnataka are opposing the Government Order, he said.
Even though the government is ready to directly transfer its share of ₹50 to bank accounts of the farmers, “these factories are refusing to provide the list of farmers and their bank details, thereby obstructing administrative processes”, he alleged.
While acknowledging that legal recourse is their right, Mr. Gowda alleged that these factories in south Karnataka were continuing to delay rightful payments to farmers by not co-operating with the district administrations.
Despite pressure from Deputy Commissioners of Mysuru, Mandya, Hassan, and Chamarajanagar districts, the factory owners are not complying and reports have already been submitted to the government highlighting the seriousness of the issue and seeking permission to directly transfer funds to farmers, he said.
Cancel licences
Hence, Mr. Gowda has urged the government not to renew the crushing licences of the seven sugar factories for the upcoming season if they fail to comply with the government directions.
Also, he said the government must strongly contest in the High Court through the Advocate General and vacate the stay order secured by the sugar factories.
Also, Mr. Gowda also urged Chief Minister Siddaramaiah to convene a high-level meeting in this regard before the onset of monsoon season and issue a warning to the factory owners that their continued non-compliance may lead to government takeover of the sugar mills.
“In an agrarian State like ours, protecting farmers’ interests must remain the government’s top priority. I therefore urge immediate and strict action against these defaulting factories,” he said.
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Source : The Hindu
