K’taka govt misled sugarcane farmers: Union Minister Joshi tells CM in letter
Bengaluru: It is not right for the Karnataka government to point fingers at the Centre regarding the issue of sugarcane farmers. Calling it an “unjust act that misleads farmers,” Union Minister for Food, Public Distribution and Consumer Affairs Pralhad Joshi has written directly to Chief Minister Siddaramaiah on Saturday expressing his objection.
As sugarcane farmers’ protests have intensified across the state, the Chief Minister pointing at the Centre and trying to shift blame over the issue of protecting farmers’ interests is not acceptable, Joshi said.
He emphasized that Prime Minister Narendra Modi’s government has always been committed to the welfare of farmers and has implemented stronger measures than ever before to safeguard the interests of both sugarcane growers and sugar factories.
Earlier, farmers used to protest demanding payment of cane arrears. The Union government under Prime Minister Modi recognised the distress of farmers and resolved it — cane arrears have now been brought down to zero, he noted.
For the 2022–23 and 2023–24 sugar seasons, all dues have been cleared by the Centre. For 2024–25, only about Rs 50 lakh remains pending. “Given these facts, pointing fingers at the Centre is unjust and a way to mislead farmers,” Joshi countered in his letter.
To ensure timely payments to sugarcane farmers, the Central government has extended support in various forms. Between 2014–15 and 2020–21, the Centre provided about Rs 16,500 crore in financial aid to sugar factories under various schemes, enabling them to pay farmers promptly.
Based on the recommendations of the Commission for Agricultural Costs and Prices (CACP), the Central government fixes a Fair and Remunerative Price (FRP) for sugarcane every sugar season (October–September). This applies to all sugarcane-growing states. For 2025–26, the FRP has been fixed at Rs 355 per quintal — including production costs — representing a margin of 105.2 per cent.
Over the past decade, the FRP has risen substantially — from Rs 210 in 2013–14 to Rs 355 now, marking a sharp increase this year. Additionally, farmers receive Rs 3.46 extra per quintal for every 0.1 per cent increase in sugar recovery. In Karnataka, with an average recovery rate of 10.5 per cent, the FRP works out to Rs 363 per quintal.
Between 2013–14 and 2024–25, the total value of sugarcane procurement has increased by 80 per cent. Last year, this figure reached Rs 1,02,687 crore. As per the FRP set by the Centre, sugar factories must pay farmers within 14 days of cane purchase. Enforcement of the 1966 Sugarcane (Control) Order provisions has been delegated to state governments, Joshi stated.
Joshi advised the state government to announce a State Advisory Price (SAP) for the benefit of Karnataka’s sugarcane farmers — similar to what Uttar Pradesh, Uttarakhand, Punjab, and Haryana have done — instead of blaming the Centre.
The Centre has been encouraging sugar mills to divert excess sugarcane toward ethanol production. Until 2013, Oil Marketing Companies (OMCs) received only 38 crore liters of ethanol, with a blending rate of just 1.53 per cent. Now, blending has reached 20 per cent, with production rising to about 1,001 crore litres, Joshi stated.
To establish ethanol distilleries in Karnataka, the Centre has provided Rs 435.42 crore in financial assistance under the ‘Ethanol Interest Subvention Scheme.’ The ethanol allocation to Karnataka’s distilleries has increased from 85 crore litres in ESY 2022–23 to 133 crore litres in ESY 2025–26. This provides an alternative income stream for sugar mills, Joshi stated.
The Centre has also allowed additional sugar exports — increasing the export limit from 10 lakh metric tonnes to 15 lakh metric tonnes, he said.
Furthermore, the 50 per cent export duty on molasses has been removed. In this way, the Union government is responding in a balanced manner, supporting both farmers and the sugar industry, Minister Pralhad Joshi stated in his letter to the Chief Minister.
Earlier, following the backlash by sugarcane farmers, Chief Minister Siddaramaiah, held a continuous seven-hour long meeting and announced a decision fixing sugarcane price at Rs 3,300 per quintal.
Following the marathon meeting, the Chief Minister held a press conference and announced the government’s decision on Friday in Bengaluru.
It was decided to send a delegation to the Centre to discuss these issues, with agreement from both farmers and factory owners, CM Siddaramaiah announced.
Sugarcane farmers and farmers’ associations in Belagavi and surrounding districts in north Karnataka started a protest for nine days demanding fixing of Rs 3,500 for one quintal of sugarcane. BJP pledged its support to the agitation.
CM Siddaramaiah maintained that sugarcane farmers in Belagavi have been protesting against the Central Government’s FRP (Fair and Remunerative Price), demanding a higher rate.