Govt. orders sugar factory owners to clear farmer’s dues

Bangalore Karnataka State

Ministry of Textiles and Sugarcane said that payments of Rs. 2,500 crores are due. 

The Karnataka Ministry of Textiles and Sugarcane ordered state sugar factories to pay the sugarcane farmers within 15 days on Wednesday.

The sugar factories have promised to make 100 percent of pending payments to farmers within 15 days.

Shankar Patil Munenakoppa, the minister also said that the total pending dues are over Rs. 2,500 crore.

Due to the lack of funds and the mismatch between the cost of production and selling price in the market, there was a delay in the payment of dues to sugarcane farmers, said a sugar mill owner.

The department of Textiles and Sugarcane has collected data of 72 factories from all over Karnataka. 

Earlier sugar cane farmers had also urged the government to introduce a digital payment system.