Under the Sugarcane (Control) Order of 1966, sugar mills are required to settle payments with sugarcane farmers within 14 days of supply. However, cane growers claim that payments are often made in installments. This practice has been challenged by Mohan Shah, Vice President of the North Karnataka Sugarcane Producers Association and former MLA, who has decided to file a public interest litigation (PIL) in the High Court.
“Sugar mills make unnecessary delays in making the payment. Sometimes, they give the first instalment after 45 days to two months, which is against the law. So far, we tried to resolve the issue with the sugar minister and local DC. As we are getting no positive response, we decided to find the solutions through the legal battle,” Shah was quoted by The Times of India. “Apart from delays in payments, we are also filing the petition in the court seeking instructions to the sugar mills that they should charge harvesting costs based on the distance of the sugarcane field from the factory. Presently, equal cost is collected from all the farmers irrespective of their distance.”, he further added.
Sugar Minister Shivanand Patil responded, acknowledging that farmers are demanding payment within 14 days.
Sugar mill management claims they cannot meet this deadline because they must sell the manufactured sugar before making payments. The mills can only sell sugar once they receive approval from the Central Government.
To address this issue, the state government is considering offering mortgage loans to sugar mills to help clear the farmers’ payments, the minister added.
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