The state government has decided to temporarily suspend its plan to privatise the iconic MySugar factory in Mandya following backlash from farmers and elected representatives.
After Chief Minister Basavaraj Bommai held a three-hour-long meeting on reviving the ailing factory, he said on Monday that the plan will be put on hold.
Bommai said the government will constitute an expert committee on restarting the factory and then take a final call in the Cabinet. The expert committee will submit its report within three months.
“The Cabinet had earlier decided to lease out the factory. This decision saw opposition. After consultation with all the stakeholders, we have decided not to pursue the privatisation plan as of now. Once the expert committee report is given, we will take a final call in the Cabinet,” he said.
Farmers’ representatives, ministers, MLAs and MPs took part in Monday’s meeting.
According to Bommai, the expert committee will look into technical details of the machinery required, finance and working capital. A discussion will also be held with bankers. Further, the committee will look into value addition to the factory’s production.
“Merely producing sugar is not profitable. We will look into how we can make use of molasses for other value-added products,” Bommai added.
Meanwhile, the government will appoint a managing director to supervise the factory. The state’s Accountant General will also appoint an accountant. The factory will commence operations soon. “For next season, we will definitely process sugarcane in this factory,” Bommai assured.
Speaking after the meeting, Mandya MP Sumalatha said the government’s decision was a progressive step. “Until now, there was no movement. I am looking at this from the perspective of farmers. The factory must recommence operations soon. Whether it will operate in government or private mode is immaterial,” she said.
In 2020, a Cabinet sub-committee led b,y Revenue Minister R Ashoka, had recommended that the government restart the factory under Operations and Maintenance (O&M) model instead of leasing it out.
Several farmer groups and elected representatives have protested the government’s proposal to privatise the factory, warning that it will be against the farmers’ interests.