The Sampadak Express News Desk
Karnataka Chief Minister D.K. Shivakumar has written to Prime Minister Narendra Modi seeking urgent Union government intervention to address a worsening crisis for sugarcane farmers, urging revisions to sugar and ethanol pricing policies and a reversal of new procurement terms that exclude key sugarcane-based ethanol. His appeal came on the day the Centre announced that oil marketing companies would not accept ethanol made from sugarcane juice, sugar syrup and B-heavy molasses in their latest tenders.
In his letter, the Chief Minister asked the Centre to revise the Minimum Selling Price (MSP) of sugar, restore the base sugar recovery rate used to calculate the Fair and Remunerative Price (FRP) for cane to 9.5%, and reconsider the exclusion of several sugarcane-based ethanol feedstocks from oil companies’ tenders for the 2026–27 supply period. He also sought a higher administered price for sugarcane-based ethanol and proposed separate MSPs for sugar sold to domestic consumers and to bulk commercial buyers.
Mr. Shivakumar noted that the MSP of sugar has remained at ₹31 per kg since February 14, 2019, while the FRP for sugarcane has risen from ₹2,750 to ₹3,650 per tonne in that period. With sugar prices effectively unchanged since 2019, mills are struggling to pay cane growers a fair rate, he argued, pressing for an MSP revision to reflect current cost pressures.
He forwarded a request from farmers’ associations to fix different MSPs for domestic and commercial sugar, saying a dual-price policy would protect household consumers while requiring bulk buyers to pay a fairer rate, thereby improving mills’ ability to compensate farmers.
The latest tender issued by oil marketing companies on October 16, 2026, for supplies in November 2026 to October 2027, excludes ethanol produced from sugarcane juice, sugar syrup and B-heavy molasses, while continuing to accept ethanol made from C-heavy molasses. Karnataka has an annual capacity of 225 crore litres of sugarcane-based ethanol, the Chief Minister said, warning that the exclusion is likely to hit mills’ revenues and delay payments to farmers. He asked the Union government to reconsider the decision and provide a fair allocation for ethanol made from sugarcane-based raw materials in line with mills’ established capacity.
Mr. Shivakumar also highlighted a pricing imbalance between feedstocks, stating that the administered prices for ethanol produced from sugarcane juice and B-heavy molasses have not changed since 2022–23, whereas grain-based ethanol prices have been increased in recent years. He urged an appropriate revision in sugarcane-based ethanol prices to offset rising cane costs.
On cane pricing calculations, the Chief Minister said the base recovery rate used to compute the FRP had been raised in stages from 9.5% to 10.25%. When actual sugar recovery falls below this base, the payable FRP is reduced, he noted, even though recovery depends on soil, climate and the timing of crushing—factors outside farmers’ control. He asked the Centre to reset the base recovery rate to 9.5% so growers in lower-recovery regions receive the base FRP.
While welcoming a committee headed by agricultural economist Ramesh Chand to examine farmers’ issues, Mr. Shivakumar said Karnataka would fully participate and share data but stressed the need for immediate assurance from the Union government. With the sugarcane crushing season already delayed in the State, he said some decisions could be taken right away as the panel continues its work.
Detailing steps the State government will take, the Chief Minister said Karnataka would install digital load cells to prevent irregularities in cane weighing at factories, conduct monthly inspections by district-level teams and direct laboratories to obtain National Accreditation Board for Testing and Calibration Laboratories (NABL) accreditation. He added that while the State would monitor factories and address operational issues, farmers’ primary demands required decisions by the Centre.
Mr. Shivakumar said he met agitating farmers in Kittur and held discussions with Union Food Minister Pralhad Joshi to persuade them to withdraw their protest in Belagavi. According to him, farmers have insisted that their key demands lie with the Union government and that they will not end their agitation without an assurance from the Centre. Protests and road blockades have delayed the start of the crushing season in North Karnataka, leaving mature cane standing in fields and reducing both its weight and sugar content with each passing day, he said.
The Chief Minister asked the Prime Minister to act swiftly on the pricing and procurement issues and to reconsider the oil companies’ ethanol tender decision to ensure mills can pay growers on time as the delayed crushing season approaches.
