Karnataka minister orders action against maize and rice based ethanol plants evading market fees


Minister Shivanand Patil ordered strict action against maize- and rice-based ethanol factories evading market fees, directing notices, criminal cases, and license cancellations. He criticized APMC officials for negligence, illegal transactions, and border-area diversion of crops. Patil emphasized accountability, proper regulation, and resolution of long-pending issues like stagnant rainwater in Raichur.
Minister for Textiles, Sugarcane Development, Sugar, and Agricultural Marketing Shivanand Patil has directed officials to issue notices and file criminal cases against maize- and rice-based ethanol factories found evading market fees.
At a state-level Agricultural Marketing Department progress review meeting held at Vikas Soudha on Friday, the minister emphasized that crops like maize, paddy, arecanut, chillies, and cotton are key sources of revenue for the Agricultural Produce Market Committees (APMCs). He pointed out that some ethanol and rice mill owners have been evading market fees, and instructed officials to keep a close watch on such mills, reported Udayavani.
Although vigilance wings have been established across four divisions and equipped with vehicles and resources to prevent cess evasion, Patil expressed dissatisfaction that their objectives remain unmet. He raised concerns over the persistence of illegal transactions, suggesting that such “No. 2 transactions” could not occur without the involvement or negligence of officials.
Patil particularly highlighted that these unauthorized transactions are widespread in border areas of Belagavi and Kalaburagi, where produce is often diverted to markets in neighboring states. Citing reports that some members of the Commercial Tax Department and vigilance teams might be complicit, he issued a stern warning, urging all officials to fulfill their responsibilities diligently.
Cooperation Department Secretary H.V. Shettennavar and APMC Director Shivanand Kapase were present at the meeting.
As per the news report by Udayavani, the minister also ordered the cancellation of trade licenses for individuals who had not conducted any business in the last five years. He observed that many were misusing these licenses for unrelated benefits and accused some APMC secretaries of focusing more on issuing licenses than regulating trade, undermining the purpose of the system.
In a sharp rebuke to Raichur APMC officials, Patil questioned why they had failed to resolve the problem of stagnant rainwater for over a year. “What does it mean if you have not been able to solve this problem for a year? Are you building a Gol Gumbaz?” he asked sarcastically.
He reminded them that he had personally visited the site during the previous monsoon season, given clear instructions for immediate resolution, and expressed displeasure that no corrective action had been taken since then.
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Source : Chinimandi
