Fix sugarcane prices before starting harvesting, mills told
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Sugar factories in Kalaburagi have been ordered to settle pricing agreements with farmers before the 2026-27 harvest. Meanwhile, Karnataka farmers continue to protest, demanding higher MSP and FRP despite the formation of a Union government committee.
Tensions Rise Over Sugarcane Pricing in Karnataka
As the 2026-27 sugarcane crushing season approaches, a significant standoff has emerged in the Kalaburagi district of Karnataka. Deputy Commissioner Ikram Shariff has issued a strict directive to the region's five sugar factories, mandating that they reach a consensus with farmers regarding procurement prices, transportation costs, and pending dues within a one-week window. This administrative intervention aims to prevent the socio-economic fallout often associated with delayed payments and price disputes that historically plague the agricultural sector.
The Economic Conflict: Profit Sharing and Fair Returns
The core of the current dispute lies in the disparity between factory profits and farmer compensation. Officials have noted that with the rising prices of sugar and ethanol, factories are currently operating on favorable margins. Consequently, there is mounting pressure on these mills to share these gains with the growers, especially given the backdrop of severe drought conditions that have compromised agricultural output. The directive emphasizes that factories must adopt a more generous stance to ensure the sustainability of the farming community.
Advocacy for Systematic Reform
Beyond immediate pricing, advocacy groups like the Karnataka Prantha Raitha Sangha (KPRS) are pushing for structural changes. KPRS district president Sharanabasappa Mamshetty has called for a benchmark price of ₹5,500 per tonne, citing the Swaminathan Commission’s recommendations which advocate for a price structure that covers costs plus a 50% profit margin. Furthermore, there is a vocal demand for a 50% share in the profits generated from sugarcane byproducts, alongside a specific request for an additional ₹900 per tonne under the State Advised Price (SAP) framework.
National Stance and Ongoing Protests
While the Union Government has responded to widespread unrest by forming a four-member committee led by agriculture scientist Ramesh Chand to examine Minimum Selling Price (MSP) and Fair and Remunerative Price (FRP) issues, farmers remain skeptical. Representatives like Chunappa Pujeri have welcomed the committee but maintained that protests will continue until concrete revisions are announced. This indicates a deep-seated lack of confidence in bureaucratic delays, with farmers signaling that they will not settle for mere dialogue without policy implementation.
Operational Integrity and Future Outlook
In addition to price points, the KPRS has raised concerns regarding the operational integrity of sugar mills, specifically citing irregularities in weighing and sugar recovery calculations. By urging the state government to halt crushing operations until these grievances are addressed, the farmers are leveraging the start of the harvest season to gain bargaining power. The coming weeks will be critical; if the district administration fails to mediate a settlement, the region could face significant supply chain disruptions, affecting both the sugar industry’s output and the livelihood of thousands of sugarcane growers.
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