Amid a protest by sugarcane farmers in North Karnataka for better prices for their crop, Chief Minister Siddaramaiah wrote to Prime Minister Narendra Modi Thursday, seeking central clearances for the Minimum Support Price (MSP) after excluding harvesting and transport charges, as well as an urgent meeting.
Siddaramaiah’s letter to PM Modi came a day ahead of his proposed meeting with sugar factory owners, aimed at providing a viable solution to sugarcane farmers.
Sugarcane farmers in the North Karnataka districts of Belagavi, Bagalkot, Vijayapura, Vijayanagara, Bidar, Gadag, Hubli-Dharwad, and Haveri have been protesting over the last few days for an increase in the fair remuneration price for their crop from the current price of Rs 3,550 per tonne announced by the Centre.
“Despite sustained efforts by the state government to engage both the farmers and the sugar mill owners in dialogue, the agitation has intensified and there is a growing sense of unrest among the farming community,” Siddaramaiah said in his letter to PM Modi.
“The state government has engaged proactively and has held multiple rounds of discussions with all the concerned stakeholders. In Belagavi, the Deputy Commissioner has advised sugar mills to pay ₹3,200 per tonne at 11.25% recovery and ₹ 2310 per tonne at 10.25% recovery, excluding harvesting and transport charges (H&T),” the chief minister said.
Unsustainable payments
Siddaramaiah stated the Fair and Remunerative Price (FRP) fixed by the Centre for the 2025-26 season stands at ₹3550 per tonne for a basic recovery rate of 10.25 per cent, but after deduction of the harvesting and transport costs, which range between ₹800 and ₹900 per tonne, the effective payment reaching the farmer is only about ₹2,600-₹3,000 per tonne.
The payment farmers are getting is unsustainable “due to sharp increases in fertilizer, labour, irrigation and transport costs”, he said.
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“The root of the problem lies in central policy levers: the Fair & Remunerative Price (FRP) formula, the stagnating Minimum Support Price (MSP) for sugar, export curbs and the under-utilised ethanol offtake from sugar-based feedstock,” the Karnataka CM said.
“Our farmers demand a cane price of ₹3,500 per tonne net to them (after H&T deductions) and time-bound payments. This figure, they insist, represents not a premium but the bare minimum required to sustain cultivation,” he added.
Siddaramaiah has requested that the Centre issue a notification allowing states to fix or endorse a net price for farmers after harvesting and transport, or mandate that mills absorb the cost of harvest and transport, “so that ₹3,500/tonne net becomes feasible.”
‘State has acted diligently’
He has also sought recalibration of the recovery rate linked to premium/discount for FRP, revision of sugar MSP above ₹ 231 per kg, a calibrated export window to relieve mills of unsold stocks, enable faster payment cycles, increased ethanol allocation and assured procurement from Karnataka’s sugar-based capacity, and improved payment protocols.
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“Our state has acted diligently, yet the crisis persists because the fundamental levers are in the hands of the Union Government. I, therefore, request a prompt meeting with you so that we may address these issues in concert for the sake of our sugarcane farming community, our rural economy, and the integrity of the sugarcane value-chain in Karnataka and the nation.”
Briefing reporters following a Cabinet meeting Thursday, which discussed the protests at length, Siddaramaiah said that FRP was fixed in May this year at Rs 3,550 per tonne for cane, which had a sugar recovery rate of 10.25 per cent.
“The Centre has increased the recovery rate from 9.5 per cent in 2017-18 to 10 per cent in 2021-22. Now, it has been increased to 10.5 per cent,” the CM said.
Calling upon the farmers to withdraw their protest, which has disrupted normal life in districts such as Belgaum, Bagalkot, and Vijayapura, he said that meetings will be held separately with farmers and sugar factory owners on Friday.
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Meanwhile, Union Minister for Consumer Affairs, Food, and Public Distribution, Pralhad Joshi, urged the state government to sit with farmers and resolve the issue.
“I don’t want to make accusations and counteraccusations. The state government should hold a meeting with mills and farmers to arrive at an amicable solution, rather than aggravating the issue further,” Joshi said while addressing a news conference.