States » SouthPosted at: Oct 26 2026 5:18PM


Shivakumar presses sugar mills for settlement as farmers seek up to Rs 6,000 per tonne

Bengaluru, Oct 26 (UNI) Karnataka Chief Minister DK Shivakumar on Monday pressed sugar mill owners to reach a settlement with sugarcane farmers demanding a price of up to Rs 6,000 per tonne, urging the industry to show generosity towards growers and warning against allowing the dispute to escalate into unrest.
Addressing a meeting with sugar mill owners here, Shivakumar said the responsibility for resolving the dispute rested jointly with the mills, the state government and the Centre, and called for a mutually acceptable solution that would protect the interests of both farmers and the sugar industry.
“Even if it imposes a burden on you, take a decision that will lead to a solution. Discuss the issue with farmers, show generosity towards them and arrive at a decision together,” he said.
The Chief Minister said farmers had sought a price of up to Rs 6,000 per tonne, pointing to the absence of an increase in sugar prices over the past decade and the resulting financial pressure on sugarcane growers.
He said the issue could not be resolved by the state government alone, given the multiple challenges confronting sugar mills, including financial constraints, banking issues, ethanol and molasses-related concerns, and electricity costs.
“We are not on anybody’s side. If there are no sugar factories, farmers will suffer; if there are no farmers, the factories will face difficulties. We have to protect the interests of both,” Shivakumar said.
Stressing the need to maintain peace, he referred to last year's agitation during which vehicles were set on fire and said such incidents should not recur. Sugar mill owners had failed to adequately win the confidence of farmers, he said, urging them to address growers' grievances before their anger escalated.
The Chief Minister said he, district ministers and legislators had met protesting farmers at Kittur and heard their grievances. He had sought time to consult all stakeholders as the dispute involved complex economic and industry-related issues.
“Today, the entire government has come and sat before you. This is not a meeting to indulge in politics. There are other platforms for that. We must find a solution through mutual understanding,” he said.
Shivakumar recalled that the state government, under Chief Minister Siddaramaiah's leadership, had earlier decided to provide part of the financial assistance sought by farmers, with sugar mills bearing the remainder.
According to information provided by officials, around 80 per cent of the factories had implemented the arrangement, while some had not complied and had approached the courts, he said.
He said the issue extended beyond Karnataka, with sugarcane-growing states such as Maharashtra, Andhra Pradesh, Telangana, Bihar and Uttar Pradesh also facing similar challenges. The Centre needed to take a national-level view of the matter, particularly in the context of ethanol and molasses policies and the broader difficulties facing the sugar industry.
Shivakumar said he had discussed the issue with union Minister Pralhad Joshi, who had taken an interest in the concerns of Karnataka's farmers. He had also spoken to the Maharashtra Chief Minister, who agreed that the matter needed to be resolved.
Highlighting the state's financial pressures, he said the government was spending around Rs 20,000 crore annually on free electricity for farmers' pump sets, with the expenditure expected to rise to Rs 32,000 crore this year. Reduced rainfall had increased electricity consumption among farmers, while sugarcane yields had declined, compounding the difficulties.
The Chief Minister said falling sugar production and challenges in domestic and international markets had added to the industry's problems, making consultations among all stakeholders essential.
He reiterated that the government would work towards a peaceful resolution that protected farmers' livelihoods as well as the viability of sugar factories.
UNI BDN
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