Karnataka Chief Minister D.K. Shivakumar has sought the urgent intervention of the Union government in resolving the crisis faced by sugarcane farmers.
In a letter to the Prime Minister Narendra Modi, the Chief Minister presented a list of demands that include policy changes and focussed action. He also assured that the State government would fulfil some of their demands including monitoring of sugar factories.
On the day the Centre announced excluding sugarcane based ethanol from the tenders by oil companies, the CM asked the government to reconsider its decision.
The CM asked PM Modi to revise Minimum Selling Price (MSP) for sugar that has remained unchanged since 2019, restore the base recovery rate for Fair and Remunerative Price (FRP) at 9.5% and to reconsider the exclusion of sugarcane-based ethanol from procurement tenders. He also sought an increase in the price of sugarcane-based ethanol.
“The Minimum Selling Price (MSP) of sugar has remained at ₹31 per kg since February 14, 2019, whereas the Fair and Remunerative Price (FRP) for sugarcane has increased from ₹2,750 to ₹3,650 per tonne. Given the sugar price levels of 2019, sugar mills are unable to pay the fair price for sugarcane. Therefore, the Minimum Selling Price (MSP) of sugar should be revised,” he said.
Forwarding a request from farmers associations, the CM requested a policy change to fix separate MSPs for domestic and commercial sugar. "This would protect domestic consumers while ensuring that bulk commercial buyers pay a fair price and ensure higher profits for sugar mills, so that they could pay higher prices to farmers.”
“In the tender issued by Oil Marketing Companies on October 16, 2026, for the 2026-27 period (November 2026 to October 2027), ethanol produced from sugarcane juice, sugar syrup, and B-heavy molasses has been excluded, whereas ethanol produced from C-heavy molasses remains eligible. Karnataka possesses an annual production capacity of 225 crore liters of sugarcane-based ethanol.”
“The exclusion of these raw materials is likely to adversely affect the revenue of sugar mills and diminish their ability to make timely payments to sugarcane farmers. Therefore, this decision should be reconsidered, and a fair allocation should be provided for the production of ethanol from sugarcane-based raw materials, in line with the established capacities of the mills,” he said.
“Although there is an annual increase in the Fair and Remunerative Price (FRP) payable for sugarcane, the prices for ethanol produced from sugarcane juice and B-heavy molasses have remained unchanged since 2022-23. In contrast, the prices for grain-based ethanol have increased over the last few years. Therefore, the price of sugarcane-based ethanol should be appropriately revised to offset the rising costs of sugarcane,” the letter said.
“Earlier, the base recovery rate to calculate the FRP was 9.50%. But it was increased in stages to 10.25%. When the recovery rate falls below this base level, the FRP is reduced. But then, sugar recovery depends on factors such as soil, climate, and the timing of sugarcane crushing, factors that are beyond the control of farmers. Consequently, farmers in regions with lower recovery rates do not receive the base FRP. Therefore, the base recovery rate should be reset to 9.50%,’’ CM Shivakumar said.
The CM welcomed the panel headers by farm scientist Ramesh Chand to look into the issues of farmers. “The State will participate fully in the committee’s activities and share data. However, as the sugarcane crushing season in Karnataka is already delayed, farmers are awaiting an urgent assurance from the Union government. Certain decisions can 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 growers. These include the installation of digital load cells to prevent irregularities in weighing at sugar factories, monthly inspections by district-level teams, and directives for laboratories to obtain National Accreditation Board for Testing and Calibration Laboratories (NABL). However, the farmers’ primary demands can only be met by the Government of India, and therefore, we seek your intervention,” the CM said.
CM Shivakumar said he had tried to persuade farmers to withdraw their agitation in Belagavi by visiting them in Kittur and by holding meetings with Pralhad Joshi, Union Food Minister. The farmers have said that their primary demands are before the Union government and that they will not call off their agitation unless they receive an assurance from the Centre. Due to these protests, the sugarcane crushing season has not yet commenced in North Karnataka. Sugarcane that is ready for harvest remains standing in the fields; with every passing day of delay, there is a loss in both the weight of the cane and its sugar content. “Protests and road blocks by sugarcane farmers are disrupting public order and causing severe inconvenience to the general public,” he said.