Sugar factories threaten to close down demanding Rs 300 subsidy

Bangalore, Mar 9 (UNI) Karnataka Sugar cane Producers Federation Chairman M R Desai today said that sugar factories will stop crushing beyond March 31 if the state government fails to pay Rs 300 per ton of sugar cane procured from the growers at support price of Rs 1100 per ton.

Talking to newsmen here, he said that due to sharp fall in the prices of Sugar, the Factories were not in a position to crush more sugar cane for the season unless the government comes to the rescue.

Mr Desai said that the Federation has appealed to the State government to help the factories on the line of neighbouring Maharashtra government which had announced a special package for both sugar cane growers and also for Factories. The State government was ready to give Rs 100 per ton as a special subsidy to crush the sugar cane till May this year, however the Federation has rejected this and demanded Rs 300 per ton.

Meanwhile, Minister for Sugar Ravindranath told newsmen that the state government has appealed the Sugar Factory owners to crush the sugar cane till May 31 as over 28 lakh metric tons of sugar cane still remained to be crushed. He said that the farmers were desperate as sugar cane grown was withering out in the fields.

UNI