7th August, 2003
Ministry of Consumer Affairs, Food & Public Distribution  


SUGAR MILLS IN KARNATKA


RAJYA SABHA

The sugar factories have, in general, expressed difficulties in payment of cane price dues to the sugarcane farmers. In recent months, the central government initiated several steps to assist the sugar industry to clear cane price arrears including creation of buffer stock of 20 lakh tonnes of sugar (in December 2000) for a period of one year, reimbursement of internal transport charges and neutralization of ocean freight disadvantage on exports of sugar.

Government of Karnataka has reported that a Cabinet Sub-Committee under the Chairmanship of the Minister for Agriculture has been appointed to go into details about the reasons and possible revival in respect of sick sugar mills. The amount due to sugarcane farmers from cooperative sugar factories in the State is Rs. 64.30 crores.

This information was given in Rajya Sabha today by the Minister of State for Consumer Affairs, Food and Public Distribution Shri V. Sreenivasa Prasad in a written reply.