Sugarcane factories owe Rs 4,482 crore to North Karnataka farmers
Sugarcane farmers in North Karnataka, producing 65% of the state’s output, face financial struggles due to delayed payments from factories, which have paid only ₹5,502 crore of the ₹9,983 crore owed under FRP. Rising transport costs further reduce profits. Farmers demand timely payments as Belagavi leads production, and cooperative factories in Bagalkot remain inactive.
Dharwad: Sugarcane growers in North Karnataka, who account for 65% of the state’s sugarcane production, continue to face challenges as delayed payments from factories have exacerbated financial woes.The 77 operational factories began crushing cane in Nov last year. So far, they have crushed 2.9 crore tonnes, producing 2.9 lakh tonnes of sugar. Some factories also produce ethanol. However, payment delays have marred the season.Factories owe farmers Rs 9,983 crore as per the fair remunerative price (FRP) but have paid only Rs 5,502 crore. While some factories have cleared 77% of their dues, others have managed just 11%. On average, only 55% of payments have been made. The Mahatma Gandhi SSK Sugar Factory in Bidar stands out as the only one to have cleared 100% of its bills, farmer representatives said.”The law mandates payment within 14 days of supply, but some factories haven’t paid for cane supplied in Dec,” said Basavant Kamble, president, Bagalkot district unit of Karnataka Rajya Raitha Sangha and Hasiru Sene.
Rising costs have compounded farmers’ difficulties. “The cost of cutting and transporting sugarcane has drastically reduced profits. Farmers transporting cane from 100km away face transport costs of Rs 850 per tonne, making it unviable,” said Dr Mahesh Patil, a sugarcane grower.In Bagalkot, 14 factories are operational, but farmers’ cooperative factories are yet to start crushing. “They’ve been directed to clear dues promptly,” said an official from the food and civil supplies department.Belagavi district, with 18 factories, leads sugarcane production, contributing 35% of Karnataka’s total. Farmers urge timely payments to mitigate mounting hardships.
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Source : The Times Of India
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