From Our Special Correspondent
Daijiworld Media Network

Bengaluru, Nov 7: A fair and remunerative price (FRP) of Rs. 2200 per tonne has been fixed for the 2014-15 sugar crushing season by the State Government on Friday.

The FRP for a tonne of cane for the 2014-15 season marks an increase of Rs 100 over the rate fixed in 2013-14. Factories in the Stare are expected to crush 400 lakh tonnes of cane in 2014-15 against 383 lakh tonnes during 2013-14.

As many as 18 sugar factories have commenced sugarcane crushing last month and more would commence in the coming days. Karnataka’s Cooperation and Sugarcane Minister H S Mahadeva Prasad announced the new FRP for the 2014-15 crushing season on Friday.

The State Government has decided not to extend concessions in purchase tax, road cess and VAT rebate to factories in 2014-15 unlike in 2013-14.

The Government has also decided against granting an additional support price of Rs 150 per tonne to cane growers. However, sugarcane growers in South Karnataka would get a minimum Rs 2500 per tonne for 9.5 per cent sugar recovery. In north Karnataka, growers would get Rs 2900 per tonne for recovery for 13 per cent recovery in north Karnataka.

The State government decided to issue notices to sugarcane factories directing them to pay arrears to growers who had supplied cane during 2013-14 sugar season, a day after the Karnataka High Court’s verdict on fixing sugarcane prices.

The High Court on Thursday upheld the Karnataka Sugarcane (Purchase and Supply Control) Act, 2013, and said that the government has powers to fix sugarcane price.

The State Government has fixed the sugarcane prices at Rs 2500 per tonne during 2013-14 sugar season. Prasad said only four factories had paid Rs 2500 per tonne of sugarcane during 2013-14 sugar season.

He said notices would be issued to all factory managements directing them to adhere to the court order and pay arrears to growers immediately.