BENGALURU: Chief Minister DK Shivakumar has sought Prime Minister Narendra Modi’s urgent intervention on the demands of sugarcane farmers in Karnataka and to help start the crushing season.
In a letter to the PM, the CM appealed to the Union Government to take an early decision on the demand for an increase in the Fair and Remunerative Price (FRP) payable for sugarcane, revise the Minimum Selling Price (MSP) of sugar and fix separate MSPs for domestic and commercial sugar.
The CM requested the Centre to take an early decision on revising the MSP of sugar, which has stayed at Rs 31 per kg since February 12, 2019, while FRP has risen from Rs 2,750 to Rs 3,650 per tonne. Mills cannot pay a fair cane price at a 2019 sugar price, he added.
The CM said that in a tender dated October 16 issued by the oil marketing companies for the Ethanol Supply Year 2026-27 (November 2026 to October 2027), ethanol produced from sugarcane juice, sugar syrup and B-heavy molasses has been excluded, while ethanol produced from C-heavy molasses remains eligible.
“Karnataka has a cane-based ethanol production capacity of 225 crore litres per annum. The exclusion of these feed-stocks is likely to adversely affect the revenue of sugar mills and constrain their ability to make timely payments to sugarcane farmers. It is, therefore, requested that the decision be reviewed,” he added.
The CM also sought an increase in the price of canebased ethanol and restore the FRP base recovery to 9.5%. “The base recovery was 9.5% earlier and has been raised step by step to 10.25%. FRP is reduced when recovery falls below this base. But sugar recovery depends on soil, climate, and the time of crushing, which the farmer does not control.
As a result, farmers in low-recovery areas do not get even the base FRP. Hence, I request that the base be brought back to 9.5%, so that FRP reflects the farmer’s real cost,” the CM added. Shivakumar said owing to the sugarcane farmers’ protests, the crushing season has not commenced in North Karnataka.
“Mature sugarcane remains standing in the fields, and every day of delay results in a loss of cane weight and sugar content,” the CM added. Shivakumar said that the State Government has taken all measures available to it within its powers, but the farmers’ core demands can be met only by the Union Government.
The CM welcomed the committee constituted by the Union Government on October 14 under the chairmanship of Ramesh Chand, former Member, NITI Aayog, to examine the issues of sugarcane farmers and the sugar sector.
“The state will participate fully and share its data. However, the crushing season in Karnataka is already delayed, and the farmers are looking to the Government of India for an early assurance. Some decisions are urgent and may kindly be taken even as the Committee continues its work,” the CM stated in his letter to the PM.