Belagavi , Karnataka Chief Minister D K Shivakumar on Tuesday said that certain understanding had been arrived at with sugar factory representatives on the sugar price issue after discussions, and a final decision will be taken based on the rate fixed by the Centre.
The discussions that commenced at around 11 am on Monday continued till midnight. The farmers have been demanding an incentive of ₹6,000 per tonne for sugarcane.
Representatives of all 80 sugar factories, farmers' organisations, ministers and MLAs attended the meeting, where both farmers and factory owners explained their concerns, he told reporters here.
"We held discussions with both sides and deliberated until Monday midnight. Towards the end of the meeting, we reached a certain understanding," Shivakumar said without elaborating.
He said factory representatives had agreed that the price would be decided based on the rate fixed by the central government following the initiative of Union Minister Pralhad Joshi. However, he declined to disclose the rate proposed during the discussions.
The chief minister said farmers had called off their proposed protest outside Joshi's residence after receiving assurances from the union minister and the state government.
{{/usCountry}}The chief minister said farmers had called off their proposed protest outside Joshi's residence after receiving assurances from the union minister and the state government.
{{/usCountry}}The union minister had promised to personally hold discussions to resolve the issue and had fulfilled that commitment, he said.
"Farmers are an asset to this country, and we must ensure their livelihoods are protected and that they get justice," Shivakumar said.
He said farmers were justified in demanding better prices as the cost of everything had increased, while sugar prices had not risen for 10 years.
Sugarcane production had also declined this year, and crushing operations were yet to begin. Any further delay could cause the crop to dry up and reduce productivity, he warned.
Factory owners had complained that nationalised banks were not extending loans to them, forcing them to depend on cooperative banks that charged higher interest rates. They were taking fresh loans to repay old debts and keep their businesses running, he said.
The factory owners had even offered to hand over four or five factories to the government to run, citing their financial difficulties. Shivakumar said farmers and sugar factories were interdependent, and the survival of the industry was important for both.
He cited the example of the government-owned Mandya Sugar Factory, which was receiving state assistance but had yet to achieve the desired level of performance. A similar situation had arisen in the district in the past, when factories were handed over to farmers' organisations with government support, he said.
Shivakumar said farmers had also demanded separate prices for sugar supplied to consumers and for commercial purposes. He said that the decision rested with the Centre.
The CM said the sugar industry faced different challenges across states, including Tamil Nadu, Maharashtra, Karnataka, Bihar and Uttar Pradesh, which has the largest number of sugar factories.
Karnataka's provision of free electricity to farmers involved an expenditure of around ₹30,000 crore per year, he said, adding that while the measure benefited farmers, it also placed a substantial financial burden on the state.
According to a statement issued by the Chief Minister's Office , the farmers and factory owners are expected to announce their final decision within two days after discussing the proposal among themselves.
"Farmers as well as the factories must survive. The livelihood of farmers is important to the government," the CMO said.
The breakthrough followed nearly 10 hours of discussions in five rounds at Suvarna Vidhana Soudha and the Circuit House in Belagavi, beginning around 11 am on Monday and continuing until midnight, the statement said.
This article was generated from an automated news agency feed without modifications to text.