Sugarcane farmers’ crisis: Karnataka CM Shivakumar seeks Centre’s intervention

Karnataka Chief Minister DK Shivakumar has sought urgent intervention from the Union government to resolve the crisis faced by sugarcane farmers.

In a letter to Prime Minister Narendra Modi, the chief minister presented a list of demands that include policy changes and targeted actions. He also assured that the state government would meet some of their demands, including monitoring sugar mills.

On the day the Center announced the exclusion of sugarcane ethanol from oil company tenders, the CM asked the government to reconsider its decision.

The CM asked PM Modi to revise the minimum selling price (MSP) for sugar, which has not changed since 2019, to restore the basic rate of return for the fair and profitable price (FRP) to 9.5% and to reconsider the exclusion of sugarcane-based ethanol from public procurement. He also sought to increase the price of sugarcane-based ethanol.

“Minimum selling price (MSP) of sugar has remained at ₹31 per kg since February 14, 2019, while the fair and remunerative price (FRP) for sugarcane has been increased from ₹2,750 to ₹3,650 per tonne. Therefore, due to the price level of sugar in 2019, sugar mills are not able to pay the fair price of sugar to Mini. The (MSP) of sugar should be revised,” he said.

Forwarding a request from the farmers’ association, the CM asked for a policy change that would set separate MSPs for domestic and commercial sugar. “This would protect domestic consumers while ensuring that wholesalers pay a fair price and ensure higher profits for sugar mills to pay higher prices to farmers.”

“In the tender issued by Oil Marketing Companies on 16 October 2026 for the period 2026-27 (November 2026 to October 2027), ethanol made from sugarcane juice, sugar syrup and heavy B molasses has been excluded, while ethanol made from heavy C molasses is entitled to 2 liters per year to produce 2 liters Karnataka sugarcane-based ethanol”.

“The exclusion of these feedstocks is likely to adversely affect the revenue of sugar mills and reduce their ability to make timely payments to sugarcane growers. This decision should therefore be reconsidered and an equitable distribution should be ensured for the production of ethanol from sugarcane-based feedstocks in line with the established capacities of sugar mills,” he said.

“Although there has been an annual increase in the fair and profitable price (FRP) payable for sugarcane, the prices of ethanol produced from sugarcane juice and B-heavy molasses have not changed since 2022-23. In contrast, grain-based ethanol prices have increased in the last few years. Therefore, the price of sugarcane-based ethanol should be compensated accordingly.

“Earlier, the base yield rate for calculating the FRP was 9.50%. But it has been gradually increased to 10.25%. When the yield rate falls below this base level, the FRP is reduced. But then sugar yield depends on factors such as soil, climate and timing of sugarcane crushing, which are factors beyond farmers’ control. As a result, farmers in base yield areas should not receive a lower rate yield. reset to 9.50%,” CM Shivakumar said.

The CM welcomed farmer Ramesh Chand to headline the panel to look at farmers’ issues. “The state will fully participate in the activities of the committee and share data. However, as the sugarcane crushing season in Karnataka is already late, farmers are waiting for an urgent assurance from the Union government. Some decisions may be taken immediately even as the committee continues its work,” he said.

“The state government, on its part, will take all necessary measures to protect the interests of sugarcane farmers. These include installation of digital load cells to prevent irregularities in weighing at sugar mills, monthly inspections by district-level teams and guidelines for labs to get National Accreditation Board for Testing and Calibration Laboratories (NABL). However, your primary farmers’ demands can only be satisfied by the Indian government and therefore we can only satisfy the Indian government.

CM Shivakumar said he tried to convince the farmers to withdraw their agitation in Belagavi by visiting them in Kittur and holding a meeting with Pralhad Joshi, Union Food Minister. The farmers said that their primary demands are before the Union government and they will not call off their agitation unless they get an assurance from the Centre. Due to these protests, the sugarcane crushing season has not yet started in North Karnataka. Sugar cane that is ready for harvest remains standing in the fields; with each additional day of delay, both the weight of the cane and its sugar content are lost. “Protests and barricades by sugarcane farmers are disturbing public order and causing serious inconvenience to the general public,” he said.

Published – 20 Oct 2026 19:12 IST