Karnataka govt fixes sugarcane price at Rs 3,300 per ton: What triggered the 9-day protests and how Siddaramaiah tried to pass the buck to the Centre. Explained

After nine days of intense protests in North Karnataka, the sugarcane farmers withdrew their protest on Friday, 7th November evening, as part of a compromise between the state government and sugar mill owners. The farmers had demanded a better price for their product, as increasing costs and production surplus made the existing rate unsustainable.

Protest and farmers’ demands

Farmers from Belagavi, Bagalkot, Vijayapura, Vijayanagara, Bidar, Gadag, Hubballi-Dharwad, and Haveri districts had taken to the streets since October 30. They sought a higher sugarcane price than the Fair and Remunerative Price (FRP) fixed by the Central government. While the FRP for the 2025-26 season stands at Rs 3,550 per tonne for a basic recovery rate of 10.25 %, the farmers end up receiving only about Rs 2,600 to Rs 3,000 per tonne after deducting harvesting and transportation charges that together range from Rs 800 to Rs 900 per tonne.

Farmers argued that the amount was not enough to cover the rising costs of labour, fertilisers, irrigation, and fuel. They demanded a net payment of Rs 3,500 per tonne after deducting harvesting and transport expenses, saying that only this rate would make sugarcane cultivation sustainable.

Government-farmer talks and agreement

After several rounds of fruitless discussions, Karnataka Chief Minister Siddaramaiah held a seven-hour-long marathon meeting in Bengaluru on Friday with representatives of 81 sugar factories from across the state. This included 11 cooperative units, one government-run factory, and 69 privately owned mills.

By the end of the meeting, an agreement was reached to pay sugarcane farmers Rs 3,300 per tonne. As part of the deal, sugar mills will pay Rs 3,250 per tonne, while the state government will add a Rs 50 subsidy. This rate excludes harvesting and transport costs. The decision effectively increases the price by Rs 100 over the rate earlier proposed by the Belagavi district administration.

Siddaramaiah announced the decision in Bengaluru, saying, “The government and factory owners have decided to contribute Rs 50 each, ensuring that farmers receive Rs 3,300 per tonne.” Soon after, farmer leaders in Belagavi declared an end to the protests, including the highway blockade near Hukkeri, where minor incidents of stone-throwing and police intervention had been reported earlier.

Political tussle between the State and Centre

The issue also highlighted tensions between the Karnataka Congress government and the BJP-led Central government over pricing policy. Siddaramaiah wrote to Prime Minister Narendra Modi seeking an urgent meeting to discuss sugarcane pricing reforms and to allow states to fix or endorse a “net price” for farmers after harvesting and transport deductions.

In his letter, Siddaramaiah argued that the real problem lies in the Central policy decisions. He pointed out flaws in the FRP formula, stagnant Minimum Support Price (MSP) for sugar, export restrictions, and insufficient ethanol procurement from sugar-based feedstock all of which, he said, were hurting farmers’ earnings.

“The Centre has increased the sugar recovery rate benchmark from 9.5 % in 2017-18 to 10.25 % now, but it has not adjusted the FRP to reflect the higher costs faced by farmers,” the Chief Minister said. He urged the Centre to permit states to make pricing adjustments so that farmers could earn a fair amount.

The Union Minister for Consumer Affairs, Food and Public Distribution, Pralhad Joshi, meanwhile, advised the state government to settle the issue by holding proper consultations with farmers and mills rather than escalating the confrontation. “The state government should sit with all sides and reach an amicable solution,” Joshi said at a press conference on Thursday.

Why farmers rejected earlier price offers

Karnataka is among India’s largest sugarcane-producing states. The state produced about 5.6 crore metric tonnes of sugar in 2024, and this year’s production is expected to cross 6 crore metric tonnes due to favourable conditions. The high production, however, has led to a surplus, adding pressure on prices and factory payments.

Earlier this year, the Belagavi district magistrate had fixed cane prices at Rs 3,100 per tonne for 10.5 % sugar recovery and Rs 3,200 for 11.25 % recovery. Farmers had rejected those rates, saying they were too low to be sustainable. The revised Rs 3,300 per tonne brings some relief, though farmers have said they will continue to seek longer-term policy changes.

By Friday night, as news of the agreement spread, protests across Belagavi and surrounding regions were withdrawn. Farmers dismantled road blockades, and local leaders thanked the government for listening to their concerns. The police also released several detained protesters.

Chief Minister Siddaramaiah said that the resolution showed the government’s commitment to protecting the interests of farmers while maintaining law and order. “We have taken this decision by putting farmers’ welfare first,” he said, expressing hope that all sides would cooperate to avoid future confrontations.

With the immediate crisis resolved, Karnataka’s sugarcane farmers now look to both the state and Central governments for a lasting solution to pricing disputes that have become a recurring issue during every crushing season.

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