Karnataka Sugar Minister Proposes Power Purchase Agreements with Sugar Factories
Bengaluru, March 17: Karnataka’s Minister for Sugar, Shivananada Patil, announced plans to seek agreements for electricity purchases from sugar factories ahead of the upcoming sugarcane crushing season. During a session in the Legislative Council, Patil responded to a notice under Rule 330 from member Ravi Kumar and others, stating that an increase in the minimum support price (MSP) for sugar by the central government could alleviate many issues faced by sugar factories and cane growers.
To address the challenges faced by sugarcane farmers and factories, a meeting chaired by the Chief Minister has already been convened for discussions. Patil noted that only two of the demands from sugar factory owners fall within the state government’s jurisdiction: the power purchase agreement and the water tax request, which the Chief Minister has assured will be considered.
Patil emphasized the need for the central government to allow sugar exports and to revise ethanol pricing based on production volumes. He expressed confidence that addressing these demands would also resolve issues for sugarcane farmers.
Additionally, he urged the central government to establish different pricing for LPG for domestic and commercial use, which would benefit consumers and address farmers’ concerns. The minister highlighted that the state has consistently made full payments to sugarcane farmers for the past two years. With this year’s crushing still ongoing, he assured that full payments would continue. Among the top three sugar-producing states, Karnataka is the only one that has made complete payments to farmers, while Maharashtra and Uttar Pradesh still have outstanding dues, he informed the Legislative Council.
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