BELAGAVI: Chief Minister DK Shivakumar called for an amicable settlement of the sugarcane pricing dispute, stressing that the State Government was committed to protecting the interests of both farmers and sugar factory owners. Addressing a meeting with sugar factory owners at Suvarna Vidhana Soudha in Belagavi, the CM said farmers had been demanding remunerative prices for several years, with growers now seeking up to Rs 6,000 per tonne to compensate for mounting losses.
“This is not a meeting to play politics. We are here to listen to everyone’s problems and arrive at a consensus,” Shivakumar said, urging factory owners to help find a mutually acceptable solution.
Shivakumar also pointed out that sugar prices had not increased significantly in the past decade, adding to the financial distress of cane growers. He recalled that the Siddaramaiah-led government had earlier decided to share the additional payment burden between the State Government and sugar factories in response to farmers’ demands.
According to officials, nearly 80% of the factories had implemented the decision, while some had failed to comply and approached the courts, the CM said. Shivakumar said sugar factory owners had not fully succeeded in winning farmers’ confidence. “Farmers suffer without factories, and factories cannot survive without farmers. It is the government’s responsibility to protect both,” he said.
Acknowledging the industry’s difficulties, he cited financial constraints, bank loans, ethanol-related issues and electricity costs as some of the challenges confronting factory owners. He said a solution could not be imposed unilaterally and required consultations with all stakeholders.
National-level intervention
Shivakumar said the sugarcane pricing crisis was not confined to Karnataka but affected several states, including Maharashtra, Andhra Pradesh, Telangana, Bihar and Uttar Pradesh. Declining sugar production and national and international factors had also affected the industry, he added. The CM said he had discussed the issue with Union Minister Pralhad Joshi and his Maharashtra counterpart, both of whom had shown interest in addressing the problem. Since the crisis extended beyond Karnataka, he said, a national-level decision was necessary.
Recalling the government’s interaction with protesting farmers in Kittur, Shivakumar said he, the district in-charge Minister and local legislators had visited the spot to hear their grievances. He appealed to all stakeholders to cooperate in maintaining peace and resolving the dispute.
He cited the government’s expenditure on free electricity for agricultural pump sets, stating that the annual outlay of Rs 20,000 crore was expected to rise to Rs 32,000 crore this year. Rainfall deficiency had increased farmers’ dependence on electricity, while sugarcane yields had also declined, he said. Urging factory owners to offer practical suggestions, the CM said the issue should be resolved through dialogue rather than politicised as the livelihoods of farmers and the survival of the sugar industry were equally important.
