Bengaluru: The state government here on Wednesday ordered the seizure of sugar stocks and molasses of defaulting factories to auction it to clear the dues after the mill owners refused to budge.
The deadlock over payment of arrears to cane growers continued here on Wednesday at a meeting with the state government failing to persuade sugar mills to clear Rs 925 crore due for 2013-14.
The mill owners stuck to their stand, citing “financial crunch” for their inability to clear the dues.
An annoyed state government, immediately after the meeting, which was held in Chief Minister Siddaramaiah’s home office Krishna, ordered the seizure of sugar stocks and auction it to clear the dues.
Siddaramaiah is learnt to have asked the mill owners to commit to a deadline to clear the dues. He also warned of tough action if they fail to do so, but to no avail.
“The government was left with no option but to auction the sugar stocks,” Sugar Minister H S Mahadeva Prasad said.
The action has already started and sugar stocks have been seized from some mills, the minister added.
To a question, he said there was sugar stock worth Rs 6,000 crore in the godowns of mills, of which Rs 925 crore worth sugar would be auctioned.
The government’s tough stand is unlikely to yield desired results as its earlier similar attempts have failed due to lack of buyers.
