Karnataka Chief Minister D K Shivakumar has called for a consensus-based solution to the ongoing dispute over sugarcane farmers’ demand for an incentive of ₹1,000 per tonne. He said the state government, the Centre and sugar factory owners must work together to safeguard farmers’ livelihoods while ensuring the financial sustainability of the sugar industry.
Addressing a meeting with sugar factory owners in Belagavi on Monday, CM Shivakumar pointed out that sugar prices had remained largely unchanged for the past decade, putting increasing financial pressure on sugarcane growers. The demand for additional compensation has led to protests across the state.
“We are not taking sides. If there are no sugar factories, farmers will suffer; if there are no farmers, sugar factories will suffer. We must protect the interests of everyone,” he said, emphasising the need to balance the concerns of both farmers and factory owners.
Government and Sugar Mills to Share Responsibility
Shivakumar said the state government had earlier announced an incentive of ₹50 per tonne, with sugar factories expected to contribute an additional ₹250 per tonne following pressure from the government. While nearly 80% of the factories had reportedly honoured the commitment, some had failed to do so and had approached the courts.
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Farmers, meanwhile, have been seeking compensation ranging from ₹5,500 to ₹6,000 per tonne of sugarcane. They cite the absence of a substantial price revision over the past decade and declining crop yields as major reasons for their demand.
The Chief Minister said he had met protesting farmers at Kittur, accompanied by district ministers and MLAs, to hear their concerns. He would consult all stakeholders and assess the financial and operational challenges faced by sugar factories before arriving at a decision.
He stressed that resolving the dispute was a shared responsibility of the state government, the Union government and sugar factory owners. Maintaining peace and preventing further escalation of the agitation, he said, remained a priority.
Financial Challenges Facing the Sugar Industry
Shivakumar highlighted the financial difficulties confronting sugar mills, including concerns related to banking, ethanol production and electricity costs. He maintained that the dispute could not be resolved through unilateral decisions and required discussions involving all concerned parties.
“This is not a meeting to engage in politics; there are other platforms for that. We must find an amicable solution to this problem,” he said.
He also referred to the state’s expenditure on providing free electricity to agricultural pump sets. According to him, the government spends around ₹20,000 crore annually on the scheme, with the outlay expected to increase to ₹32,000 crore this year because of deficient rainfall and higher power consumption.
Centre’s Intervention Seen as Crucial
The Chief Minister said he had discussed the issue with Union Minister Pralhad Joshi, who had taken note of the concerns raised by Karnataka’s farmers. He added that a national-level decision was necessary, given the decline in sugar production and the domestic and international challenges affecting the industry.
CM Shivakumar also said he had spoken to the Maharashtra Chief Minister, who agreed that the dispute needed to be resolved. Also Read | Maharashtra Govt to computerize 12,000 Primary Agri Credit Societies
Earlier, speaking to reporters, he said he would first obtain the views of officials, consult farmers and elected representatives, and then decide on the demand for an incentive of ₹1,000 per tonne. He reiterated that the Centre’s involvement was essential, estimating that the state government accounted for only 10% of the responsibility for resolving the issue, while the Centre’s share was 90%.
Protests in Belagavi Intensify as Farmers Disagree on Compensation
The dispute has triggered demonstrations in several parts of Karnataka. On Sunday, sugarcane growers staged a protest at Gurlapur in Mudalagi taluk of Belagavi district, blocking a state highway to press for the additional incentive.
Tensions also surfaced during a meeting with farmers at Suvarna Vidhana Soudha in Belagavi, where two groups of farmers reportedly clashed over the compensation amount. District authorities, agriculture department officials and police intervened to calm the groups and restore order.
According to sources, one faction agreed to lower its compensation demand from ₹6,000 to ₹5,500 per tonne, while another reportedly reduced its demand to ₹4,500 per tonne. The disagreement over the proposed amounts allegedly triggered the confrontation.
Finding a Balance Between Farmers and Sugar Factories
The ongoing dispute highlights the challenge of ensuring fair returns for sugarcane growers while keeping sugar factories financially viable. Farmers are seeking better compensation amid stagnant sugar prices and falling yields, while factory owners point to rising operating costs and financial constraints.
Shivakumar’s appeal for coordinated action by the state government, the Centre and sugar mills signals an effort to find a negotiated settlement. The outcome will depend on consultations with stakeholders and the ability of the parties to agree on a compensation arrangement that addresses farmers’ concerns without undermining the industry’s long-term sustainability.
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