Farmers' Organizations Oppose Karnataka's BOT Model for Cooperative Sugar Mills
Farmers' organizations in Karnataka oppose the state government's BOT model allowing private investors to take over cooperative sugar mills' by-product projects. They argue it undermines the cooperative movement and transfers assets to private hands without farmer safeguards. Financial strains on sugar mills, due to rising costs and regulatory changes, have prompted concerns that farmers may shift to other crops if profits decrease.
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Farmers' organizations in Karnataka have voiced strong opposition to the state government's decision permitting financially struggling cooperative sugar mills to transfer their by-product projects to private investors under a Build-Operate-Transfer (BOT) model. Leaders argue this move undermines the cooperative movement and could lead to the privatization of valuable cooperative assets.
The government’s policy allows private control over projects related to power generation, alcohol, CBG, and biogas, raising concerns about the financial viability of cooperative mills. Critics point to previous policy changes that have diminished farmers' earnings and emphasize the need for farmer input in project approvals, as current regulations require annual general meeting consent, which the new policy circumvents.
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