Bengaluru: The cash strapped Karnataka sugar industry is facing a tough time after lockdown as the sale of sugar has fallen and witnessing halt in ethanol despatches.
Due to poor financial condition, mills are also unable to clear cane dues. This has created problems for mills as well as to cane growers. So, to come out of this grim situation, millers sought state government help.
According to the news report published in Deccan Herald, sugar mills in the state have sought Rs 1,000 crore bailout package from Karnataka government.
Jagadish Gudagunti, President, South Indian Sugar Mills Association (SISMA), Karnataka, and CMD of Prabhu Sugars, said, “The restaurants, bakeries, sweet marts, icecream parlours which are our regular consumers are shut due to lockdown. The ethanol sale has been halted as fuel sale is reduced due to lockdown.”
According to ISMA, 63 sugar mills have produced 33.82 lakh tonnes of sugar. All the mills have closed their operations in the State.