Karnataka farm leaders demand transparency while effecting change of guard in sugar units
Farmers’ leaders in Karnataka demand transparency in leasing two cooperative sugar factories in Belagavi district. They fear mismanagement and call for government intervention to ensure competent companies take over. Concerns include financial support for optimal sugar and ethanol production and the need to regulate the new management to protect the interests of sugarcane farmers.
Karnataka Rajya Raitha Sangha and Krishik Samaj leaders have urged the State government to maintain transparency in power transfer to two cooperative sugar factories in the Belagavi district. Two factories— the Hiranyakeshi Cooperative Sugar Factory (HCSF) and Malaprabha Cooperative Sugar Factory (MCSF) are set to be given on lease. Decisions to this effect have been made during the factories’ annual general body meetings in recent months. Farmers leaders, however, are cautious.They demand that the leasing process should be transparent and that the sugarcane suppliers should be taken into confidence. Sidagouda Modagi, Krishik Samaj president, said that the factory should not be leased until the agency that is participating in the tender process demonstrates its capacity to run the factory profitably. “We are suspicious that some company that wants to regularise its losses does not end up getting the unit. It has happened in the past in northern Karnataka.
Farmers will be betrayed, if that happens again,’‘ he said. He sought the intervention of the state government in the leasing process and the management of factories. “Sugar factories are controlled by three ministries- sugar, cooperation and industries and therefore, are not properly regulated. We have been demanding that there is a single point of control. Hope the government listens to us’‘, he said. Mr. Modagi said that MCSF needed financial support from the government to start producing sugar and ethanol in optimum capacities.
“The government should also regulate the activities of the new management,’‘ he demanded. Shashikant Naik, former MLA, and former director of HSCF said that it was very unfortunate that most cooperatives were doing badly while private factories were flourishing. He said that petty politics played by the directors of the factory was responsible for the current state of the factory. “Earlier, the factory was one of the best in the state. Now it is a loss making unit. The government should ensure that a well meaning, professionally run company takes over the plant. Or else, it should be returned to the farmers, who are the share holders,’‘ he said.
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