Karnataka Chief Minister D.K. Shivakumar has urged sugar factory owners and sugarcane growers to reach an amicable settlement over pricing, warning that the dispute should not escalate into confrontation. He held separate meetings with factory owners and farmers in Belagavi on Monday as growers sought payments of up to Rs 6,000 per tonne of sugarcane.
Addressing factory owners, Shivakumar said managements had failed to take farmers into confidence, which had contributed to resentment among growers. He appealed to the owners to consider the financial difficulties faced by farmers and work towards a solution through mutual discussions, even if reaching an agreement required them to bear an additional financial burden.
“Even if it places an additional burden on you, take a decision that will help find a solution. Sugar factory owners must take farmers into confidence and should not allow their anger to grow,” he said.
The Chief Minister said the state government could not resolve the matter on its own because the dispute involved sugar factories and the Union government as well. He said farmers had demanded up to Rs 6,000 per tonne and that the three sides would have to work out a settlement.
Shivakumar also urged both sides to avoid confrontation and cautioned against the agitation turning violent. He recalled an incident last year in which a vehicle was set on fire, saying that maintaining peace in the state was the government’s responsibility.
The Chief Minister said the government was not taking sides because the interests of sugarcane growers and factories were closely linked. “If there are no factories, farmers will suffer. If there are no farmers, factories will suffer. We have to protect both,” he said, adding that the issue concerned the livelihoods of both groups.
He said sugar prices had not increased for the past 10 years and that factories had continued to incur losses. The industry was also facing higher financial pressures related to bank matters, ethanol, electricity and molasses, according to issues raised during the discussions.
Shivakumar said he and district ministers and legislators had earlier met protesting farmers at Kittur and heard their grievances. He had sought additional time, he said, because the concerns raised by sugar factories also needed to be considered before a decision was taken.
The Chief Minister referred to an earlier arrangement under the Siddaramaiah-led government under which the state government would contribute a certain amount and factories would pay the balance to farmers. Officials informed the meeting that about 80 per cent of factories had complied with that decision, while some had challenged it in court.
He said the sugar industry was facing difficulties not only in Karnataka but also in Maharashtra, Andhra Pradesh, Telangana, Bihar and Uttar Pradesh. The issue therefore required a national-level response, particularly on ethanol and molasses. Shivakumar said the matter had been discussed with Union Minister Pralhad Joshi and that a committee constituted by the Centre was making progress.
He also said he had discussed the dispute with the Maharashtra Chief Minister, who agreed that a solution was necessary. Shivakumar said sugar production and sugarcane yields had declined, while the industry was also dealing with pressures arising from national and international developments. Further discussions among the state government, factory owners, farmers and the Centre are expected to determine the next steps.
