HAVERI
Tahsildar Sharanamma has issued a formal notice to GM Sugars and Energy Company, located in Sangur, for failing to pay dues to sugarcane farmers. The factory has been directed to clear an outstanding balance of ₹18.46 crore, along with 15% interest, within seven days.
The notice follows a directive from the Sugar Development Commissioner and was issued based on instructions from the District Collector. During the 2023–24 crushing season, the Fair and Remunerative Price (FRP) was set at ₹2,923 per tonne. The factory crushed 3,06,030 metric tonnes of cane, for which farmers were due ₹89.45 crore. However, the factory reportedly delayed payment, leaving a significant balance unpaid.
The Sugar Commissioner had earlier written to the District Collector on October 22, 2024, urging immediate payment of dues with interest. Despite this, the factory continued to delay payments, prompting the latest action.
Tahsildar Sharanamma confirmed the issuance of the notice, stating, “The factory must respond within the deadline. Their reply will be scrutinised before deciding the next course of action.”
Sources revealed that a 2023–24 official order was concealed at the Karnataka Cooperative Sugar Factory office and was discovered only during a recent inspection. The letter was then submitted to the Deputy Commissioner.
Officials have warned that if the factory fails to comply, sugar stocks and by-products may be seized and sold to recover the dues. In the absence of sufficient inventory, movable and immovable properties of the factory could be auctioned. Farmers and activists are now demanding swift recovery measures to ensure timely settlement of the pending dues with interest.