No stopgap relief, farmers want sugarcane crisis on Karnataka Budget agenda
BELAGAVI: As Chief Minister Siddaramaiah gears up to present the Karnataka Budget 2026-27, expectations are soaring across the state’s farm sector, from the politically sensitive sugarcane belt of North Karnataka to drought-prone command areas, awaiting irrigation relief.
At the centre of the storm is the deepening sugarcane crisis. Cane growers, agitated over low price realisation and mounting arrears, are demanding that the government move beyond interim relief and announce a firm, enhanced package over the Centre’s Fair and Remunerative Price (FRP).
Farmers argue that the current returns fail to match spiralling input costs, including fertilisers, labour and transport. They want the budget to institutionalise a transparent price-sharing formula and mandate a strict payment timeline to prevent recurring disputes between mills and growers.
With several sugar factories grappling with cash-flow stress, farmer organisations insist that any revival package must also address mill liquidity, ensuring that arrears do not spill into the next crushing season.
The rural credit crunch is another flashpoint. Farm leaders are urging expanded interest subvention, enhanced crop loan limits and simplified restructuring of old loans to protect small and marginal farmers from falling into private debt traps. Strengthening cooperative banks and Primary Agricultural Credit Societies is being viewed as critical to stabilising village economies.
Noted farmer leader Kuruburu Shanthakumar says the government should come clear on FRP fixation and change the farm loan pattern. “The state should adopt the Telangana model for the effective lake desiltation,” he says.
On the marketing front, expectations are high for renewed investment in Agricultural Produce Market Committee (APMC) infrastructure, particularly after contentious debates over APMC reforms and partial rollbacks. Modern APMC market yards, better storage, grading units and transparent price discovery mechanisms are among the key demands.
Expectations high in irrigation sector
The irrigation sector is watching the budget keenly. Major projects with political and regional significance, including the Upper Bhadra Project, Upper Krishna Project (UKP-3), the Mekedatu Project, and Cauvery-based drinking water schemes, are expected to dominate discussions.
For drought-hit central Karnataka, Upper Bhadra remains crucial. Though granted national project status, central funds have trickled in slowly, leaving progress measured. Legislators are pressing for a substantial state allocation to accelerate canal and lift works.
In North Karnataka, UKP-3 faces rising land acquisition and compensation costs, necessitating higher outlays. Meanwhile, the Mekedatu proposal, projected as vital for Bengaluru’s long-term water security, may see preparatory allocations despite pending clearances.
Yet, with fiscal pressures mounting and welfare commitments heavy, the government faces a delicate balancing act. For Karnataka’s farmers and water-scarce regions, this budget could determine whether long-promised agricultural and irrigation dreams edge closer to reality, or remain confined to paper.