Karnataka: CM Seeks Sugar Factory Owners’ Cooperation To Resolve Sugarcane Price Dispute

Belagavi: As part of efforts to resolve the ongoing sugarcane pricing dispute, Chief Minister DK Shivakumar on Monday held separate meetings with sugar factory owners and growers in Belagavi, urging the factory owners to work towards an amicable settlement of the issues raised by sugarcane growers, even if it meant bearing an additional financial burden.

Addressing a meeting of sugar factory owners in Belagavi, Shivakumar said the factory management did not succeed in taking farmers into confidence, resulting in resentment among growers. He appealed to the owners to understand the difficulties faced by farmers and work towards a solution through mutual discussions.

"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.

Shivakumar stated that the issue could not be resolved by the state government alone, as it involved sugar factory owners as well as the Centre.

"Farmers have demanded a price of up to Rs 6,000 per tonne of sugarcane. It is for the sugar factory owners, the Central government and the state government to work out a solution," he said.

The Chief Minister also cautioned against allowing the agitation to take a violent turn, recalling an incident last year in which a vehicle was set on fire.

He said maintaining peace in the state was the government's responsibility and urged both sides to avoid confrontation.

Making it clear that the government was not taking sides, Shivakumar said the interests of farmers and sugar 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. What matters to us is the livelihood of farmers as well as sugar factory owners," he said.

"This is not a meeting for politics. There are other platforms for that. We must find a solution through mutual understanding," he said.

He pointed out that sugar prices had not increased for the past 10 years, due to which the losses had continued to mount.

Shivakumar recalled that he, along with district ministers and legislators, had met the protesting farmers at Kittur and heard their grievances. He said he had sought time from them as the issues raised by sugar factories, including financial difficulties, bank-related matters, ethanol and electricity costs, also needed to be considered before arriving at a decision.

"I cannot take a decision on my own. That is why I sought time from the farmers to discuss the matter with everyone concerned. Today, the entire government is sitting before you," he told the factory owners.

Referring to the measures taken earlier by the Siddaramaiah-led government, Shivakumar said an arrangement had been worked out under which the government would contribute a certain amount and sugar factories would pay the remaining amount to farmers.

“According to the information provided by officials, around 80 per cent of the factories had complied with the 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 matter therefore required a solution at the national level. We had already discussed the issue with Union Minister Pralhad Joshi, who was aware of the problems faced by Karnataka's farmers and was making efforts to address them,” he said.

Shivakumar also referred to discussions at the national level on ethanol and molasses, and said Karnataka should exert pressure on the Centre, particularly as Union ministers from the state were familiar with the situation.

He said MPs had also informed the meeting about the progress made by a committee constituted by the Central government.

"I have also discussed the issue with the Maharashtra Chief Minister, who agreed that a solution must be found. This is not an issue concerning Karnataka alone. It requires a decision at the national level," he said.

Shivakumar said sugar production and sugarcane yields had declined, while the industry was also facing challenges linked to national and international developments.