Sidagouda Modagi, the state president of the Bharatiya Krishik Samaj (BKS), has issued a strong demand for the immediate clearance of pending dues owed to farmers by the Malaprabha cooperative sugar factory located in Kittur taluk. The outstanding amount is reported to be close to Rs 8 crore, a significant sum that has left many farmers in financial distress.
Allegations of Financial Mismanagement
Speaking to the media in Belagavi on Friday, Modagi alleged that the previous management of the factory failed to make timely payments to the farmers, thereby pushing them into debt. He emphasized that this situation is unacceptable and requires urgent attention from the current authorities.
Call for Transparency in Judicial Investigation
Modagi further demanded that the judicial investigation report concerning the Malaprabha cooperative sugar factory, which is situated in MK Hubballi, Kittur taluk, must be made public. This report, he insisted, should also be shared with the farmers to ensure transparency and accountability.
Historical Context of Irregularities
The Malaprabha sugar factory is regarded as a prestigious entity within the cooperative sector. However, over the past decade, it has been marred by numerous complaints related to financial irregularities, abuse of power, and illegal transactions. Specific issues highlighted include:
- In the financial year 2017-18, farmers who supplied sugarcane were owed a total of Rs 7.8 crore, which translates to approximately Rs 594 per tonne of sugarcane.
- Close to 18,412 quintals of sugar were illegally stored in the godown, raising serious concerns about inventory management.
- There were additional complaints regarding the illegal appointment of the managing director, unauthorized sales of sugar, and illicit purchases.
Government Intervention and Current Leadership
In response to these allegations, Sugar Minister Shivanand Patil and Minister HK Patil handed over the investigation of the irregularities to the judiciary. The investigation has since been completed, and the report has been submitted to the government. Modagi stressed that the findings of this report must be disclosed to the public, particularly the affected farmers.
Under the changed circumstances, the governing body is now led by legislative council member Channaraj Hattiholi. Modagi urged that the election promises made during the previous term should not be broken, and immediate action must be taken to clear the dues of the farmers. He was joined by farmers' leaders Irappa Patted and Mallikarjuna during the media interaction, underscoring the collective concern over this issue.
Implications for the Cooperative Sector
The ongoing situation at the Malaprabha sugar factory highlights broader challenges within the cooperative sector, including governance issues and financial accountability. Ensuring that farmers receive their rightful payments is crucial for maintaining trust and sustainability in agricultural cooperatives.
