Package for sugarcane growers on the cards

BANGALORE: After coming out with hefty special economic packages for farmers, weavers and geographical regions like Malnad, Bellary, Kodagu and Mandya, the S M Krishna ministry is working out a package for sugarcane growers.
The broad contours of the package for sugarcane growers have already been finalised, Karnataka’s Co-operation Minister H Vishwanath said, adding that the package will be placed before the next cabinet meeting on January 30 for approval.
Mr Vishwanath said the package would also benefit sugar factories in the state as improvement in the health of sugar factories is a prime requirement of all sugarcane growers. All categories of sugar factories in the state owed over Rs 250 crore to sugarcane growers despite having in excess of Rs 1,300 crore worth of sugar in their godowns, which they were unable to dispose of, the minister said.
Prominent among the reliefs proposed are deferment of collection purchase tax, continuation of export subsidy of Rs 1,000 a tonne and rescheduling of loans to sugarcane growers as well as those availed of by the sugar factories, Mr Vishwanath said.
Sugar factories in the co-operative sector had availed over Rs 900 crore loans from district co-operative banks, the minister said, adding that the government will have to help these factories to reduce their financial burden.

The minister said that chronically sick sugar factories in the co-operative sector may have to be either leased out or privatised to prevent closure. The factories in Aland, Hiriyur, Haveri, Raibag, Khanapur and Pandavpur belonged to this category, he added.