From Our Special Correspondent
Daijiworld Media Network - Bengaluru

Bengaluru, Sep Oct 1: A solution to the plight of the sugarcane growers due to non-payment of arrears for the years 2013-14 and 2014-15 by the sugar factories is likely to resolved soon, Karnataka’s Cooperation Minister H S Mahadeva Prasad said on Wednesday.

Speaking to reporters in Bengaluru, he said the State Government had directed the Advocate General to aggressively work towards vacating the many stay orders by the Bengaluru, Dharwad and Kalaburgi courts, to pave way for auctioning of the seized sugar.

The minister also said that for the year 2014-15, the factories have to pay farmers dues to the tune of Rs 1,238.57 crore.

The State Government had seized 1.5 lakh tonnes of sugar from 47 factoriesto clear the dues.

The minister said the State Government will be able to raise around Rs 330 crore after auctioning the sugar and the amount will be disbursed to the farmers.

However, as most factories have moved the courts, the auctioning process has been stalled.

While crushing has started in six factories in Hassan, Mysuru and Mandya districts, crushing activities in central and North Karnataka will start in the month of November, he said.

As there were no buyers for the sugar, the State Government turned to Mysore Sales International Ltd (MSIL) to purchase the sugar and sell the same in open market.

To facilitate the process, the State Government has given bank guarantee to MSIL to borrow Rs 374 crore, in order to purchase the seized sugar.

MSIL has bid up to Rs 21 per kilo of sugar, he said.

Of the 47 factories, auctioning has to be completed in 12 more factories.

Of the 65 factories, only eight factories have paid the full amount.

But 48 factories have agreed to avail soft loans from nationalised banks to the tune of Rs 600 to Rs 700 crore, he said.

"The State Government had sought the Centre’s intervention to help raise the remaining Rs 500 crore. But our appeal has gone unheard," he added.