Karnataka minister Satish Jarkiholi has called for the Centre to raise the minimum selling price of sugar from ₹31 to ₹50 per kilogram, saying sugar factories cannot offer higher sugarcane prices when sugar prices remain unstable. His remarks come amid a dispute between sugarcane growers and factories in Belagavi over the price to be paid for the current crushing season.
Speaking at a press conference in Belagavi on Monday, Jarkiholi said sugar factories were selling sugar at around ₹50 per kilogram but that the price was not stable and could fall. He said factories therefore could not determine sugarcane prices solely on the basis of the current market price of sugar.
“Sugar factories are selling every kilogram of sugar at ₹50. This is not stable and may sometimes decline,” Jarkiholi said, according to Prajavani. He said the Central Government should increase the minimum selling price of sugar from ₹31 to ₹50 per kilogram, allowing factories to pay sugarcane growers more and helping resolve the conflict over cane prices.
The minister said the disagreement between farmers and sugar factories should be addressed through negotiations. He also alleged that the Centre was politicising the issue of fixing the minimum selling price of sugar and said an appropriate decision was necessary to resolve the difficulties faced by sugarcane growers.
Jarkiholi said the consent of farmers would be important for sugar factories to begin operations during the current season. Without that consent, he said, factory owners might not come forward to start their plants. He called for an agreement between farmers and factory owners before the crushing season begins.
The remarks point to the link between sugar pricing and the economics of sugarcane procurement. Factories must sell processed sugar in a market where prices can fluctuate, while growers are seeking a higher and more certain return for their crop. The minister’s proposed increase in the minimum selling price is intended to create room for factories to offer a higher cane price, but no such increase has been announced in the report.
Jarkiholi said Chief Minister D.K. Shivakumar had held meetings with farmers in Channamma’s Kittur and Belagavi and had attempted to bring the issue to the Centre’s attention. He said Union minister Pralhad Joshi was responsible for urging the Central Government to increase the minimum selling price of sugar.
He also said sugar factories and farmer representatives had indicated that they would hold a joint meeting and reach a decision within two days, but no further development had taken place. Jarkiholi added that farmer representatives had not spoken to him and advised them to approach the deputy commissioner’s office if they wanted to place their concerns before the government.
The minister said the Centre announces the Fair and Remunerative Price for sugarcane every year, but described the amount as inadequate. He did not give a clear answer on whether the Karnataka Government would announce a State Advised Price.
The dispute remains tied to the immediate question of whether farmers and factories can reach an agreement that allows the current season’s operations to begin. The minister said discussions between both sides would be necessary for a decision on the issue.
