BELAGAVI: Karnataka, the second largest sugar-producing state in India, is witnessing a bitter standoff between sugarcane farmers and sugar factories. Thousands of farmers across several districts of North Karnataka, mainly Belagavi, Bagalkot and Vijayapura have intensified their protests demanding a price of Rs 3,500 per tonne for their crop.
Sugar mills, however, have refused to pay more than Rs 3,200 per tonne, citing rising production costs and market constraints. The standoff has crippled operations at nearly 26 sugar mills in North Karnataka, with farmers blocking highways and factory gates, halting cane supply and crushing activities.
The indefinite strike launched by sugarcane farmers at Gurlapur, near Mudalgi, Belagavi district, has entered the seventh day on Wednesday as the State Government and sugar factories failed to find an immediate solution to the raging cane crisis. Thousands of cane growers are joining the agitation at Gurlapur from where they have vowed not to end their strike until the government announced Rs 3,500 for a tonne of cane. The State Government, under growing pressure from both sides, has yet to announce a clear resolution.
Farmer unions have accused the government of siding with mill owners and delaying intervention. Opposition leaders, headed by state BJP president BY Vijayendra have joined the protests, turning the issue into a major political flashpoint.
The crisis has also disrupted rural livelihoods, affecting transporters and mill workers dependent on the sugar industry. With heavy rains and higher input costs already burdening cultivators, farmers warn of intensifying the agitation if their demand is not met soon.
Several experts feel if unresolved, the stalemate could have serious implications for Karnataka’s agrarian economy and the upcoming crushing season.
“The cost of cultivating one tonne of cane now ranges between Rs 2,900 and Rs 3,000,” farmers argue. “With fertilizer prices up by 40%, labour charges rising by 35%, and irrigation and transport costs doubling, Rs 3,500 isn’t profit — it’s the bare minimum for survival,” the cane growers argue.
Sugar mill representatives, however, claim their hands are tied. Sugar prices have dropped from Rs 3,700 to Rs 3,200 per quintal in just four months, they say, blaming a global glut caused by increased production in Brazil and Thailand.
“At Rs 3,500 per tonne, we will incur losses and fail to repay bank loans,” they added.
A government on the sidelines
None of the 77 sugar factories operating from Karnataka are under direct government control. Most are managed by politically influential individuals leading to allegations that the state has lost regulatory grip over the sector. Even as tensions escalate, the government, especially the Sugar Minister, has remained conspicuously passive, further fuelling farmers’ anger.
Why Maharashtra pays more
Adding salt to the wound is the comparison with neighbouring Maharashtra, where mills are already paying Rs 3,410–Rs 3,500 per tonne for cane— and even bearing the cost of harvesting and transportation of sugarcane crop. “If “Maharashtra can do it, why not Karnataka?” asks farmer leader Siddagouda Modagi “It’s the same sugar, the same labour costs. Why are we treated differently,” he asked. Modagi said the government should fix the price of cane scientifically based on the profits reaped by sugar factories.
Most of the sugar factories in the state are operated by sitting MLAs, ministers or former legislators and influential leaders from Congress, BJP and JDS. “The leaders, who ran private sugar factories for several years, have now started capturing cooperative sugar factories all across the state. The government is under pressure to support sugar mills under such circumstances. These leaders would always be concerned about the factories’ welfare and not farmers,’’ he said.
The Bigger Question: Who Profits from Sugarcane?
Beyond sugar production, cane also yields lucrative by-products like ethanol, molasses, bio-energy, and paper pulp. According to the Sugarcane (Control) Order, 1966, farmers are entitled to a share of profits from these by-products. Yet, in reality, few factories comply.
Farmer unions are now demanding a new law mandating a fair share of by-product profits to cultivators. “Even when sugar prices rise, farmers never see the benefit,” they argue. “But when prices fall, they’re the first to suffer,” they added.
Every crushing season, Karnataka’s sugar economy is thrown into turmoil over pricing. This year, the deadlock appears more severe. Of the state’s 77 operational sugar mills, including 29 in Belagavi district, most began crushing without announcing a fixed rate. Now, protests have forced several mills to halt operations.
The price formula
According to experts, sugarcane prices are determined by key factors like FRP (Fair and Remunerative Price) set by the Centre (Rs 3,150 per tonne this year). SAP (State Advised Price) determined by the state which is usually higher to support farmers. Factories’ financial health and sugar market value. However, the Karnataka government has delayed announcing the SAP, leaving mills to cling to the lower central FRP rate — a move seen as favouring industry over cultivators.
No end in sight for crisis
With crushing halted, protests spreading, and no clear government intervention, Karnataka’s sugar sector faces a deepening crisis. What began as a routine dispute over cane prices has now turned into a larger fight for fairness, accountability, and the very survival of tens of thousands of farmers.
Government taking farmers' protest lightly: BYV
State BJP president BY Vijayendra joined the indefinite agitation of cane growers at Gurlapur on Tuesday and stayed with them overnight. He has accused the State Government of taking the ongoing sugarcane farmers’ protest lightly. He criticised district in-charge ministers and the Sugar Minister for failing to meet the agitating farmers or respond to their demands. Vijayendra urged the government to immediately address the farmers’ concerns and restore their confidence.
“I have joined the protest to stand by the farmers, not to support sugar factory owners,” he clarified, responding to questions regarding BJP leaders also owning sugar factories.
“Leaders from both BJP and Congress run sugar mills. But that does not stop me from fighting for fair prices for farmers,” he said.
Belagavi district in-charge minister Satish Jarkiholi, who is also Public Works Minister, has said the government representatives were holding discussions with the agitators to resolve the crisis once and for all. He expressed confidence that his government was committed to protecting the interest of cane growers by ensuring a fair price for their yield.
Minister HK Patil meets farmers
The State Government deputed Law and Parliamentary Affairs Minister HK Patil to hold discussions with the agitating farmers at Gurlapur on Wednesday but his talks with the agitators failed to end the deadlock. Addressing them late on Wednesday night, Patil said the government was taking their demands seriously.
“A lasting solution to the cane growers problems could be found only through a discussion. We will have a meeting to discuss all the points raised by the agitators. I will assure that the government will announce its decision on prices of cane by November 7,’’ he said.
Patil, however, failed to convince the agitators. Patil insisted the agitators to attend the meeting to be called by the government on Thursday and said a final solution the cane crisis would surely be found.