Bangalore: An Act to protect the interest of sugarcane farmers in Karnataka has come into effect which would also help ensure purchase and supply of cane in a transparent manner, state's Cooperation Minister HS Mahadev Prasad said on Tuesday.
"The Karnataka Sugarcane (Regulation of Purchase and Supply) Act, 2013, has already come into effect. The law will protect the interest of sugarcane growers," he said.
Prasad said that it has a provision for payment of sugarcane price in two stages - at first stage immediately, on supply of sugarcane, the sugarcane growers will be paid the Fair and Remunerative Price based on previous year's recovery of the concerned factory.
In the second stage, the payment of additional price of sugarcane will be based on revenue-sharing basis determined, the Minister said. Prasad said that the Act would benefit cane growers and it promises appropriate price for sugarcane.
A fresh clause Fair and Remunerative Price of sugarcane (FRP) as price fixed by the Central government under Clause 3 of Sugarcane (Control) Order 1966 for sugarcane delivered at the factory gate has been inserted, he said.
The government has issued notice to 14 sugar factories, directing them to pay Rs 2,100 a tonne according to FRP fixed under the Union government's Sugar Control order. Of these factories, four have been seized - two in Belgaum and one each in Gulbarga and Bidar, Prasad said.
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