"We will stand with farmers": Karnataka CM Siddaramaiah meets sugar mill owners

Bengaluru (Karnataka) [India], November 7 (ANI): Karnataka Chief Minister Siddaramaiah on Friday met sugarcane factory owners and farmers at Vidhana Soudha to discuss sugarcane pricing, ethanol production, and exports. Responding to their concerns, he said, "We will stand with the farmers. You too must be ready to help solve their problems," and assured the State Government would act on issues within its control.
During the meetings with CM factory owners, it was pointed out that "Production and sale of sugar ethanol production and price fixing, sugar export and its pricing all fall under the jurisdiction of the Central Government."
They expressed concern that policies from the Centre have placed South Indian mills at a disadvantage compared to northern states, saying, "Because of the Centre's policies, sugar mills in South India are facing problems, while mills in North India are in a favourable position," was the common opinion of the factory owners.
Siddaramaiah responded, "We will stand with the farmers. You too must be ready to help solve their problems." The CM further assured that the State Government will examine and address issues concerning factory owners that fall within the State's jurisdiction.
The Chief Minister also said the proposal to impose a 60-paise-per-unit tax on electricity sold by sugar mills would be reconsidered.
Representing the factory owners, Murugesh Nirani said, "The problems of sugarcane farmers have continued under every government. The State has not renewed the Power Purchase Agreement (PPA) with sugar factories. In Maharashtra, electricity purchased from sugar factories is paid at Rs 6 per unit. The Karnataka Government should follow the same model. The 60-paise tax per unit on electricity sold by factories should be withdrawn. The minimum distance between two sugar factories should be fixed at 25 km. The Prime Minister should be urged to allow ethanol blending in aviation fuel at the earliest. Farmers are currently being paid as per the FRP, and if additional income is possible after the crushing season, it will be shared with farmers."
On Central Government policies, factory owners said, "Despite requests, the Centre has not increased the MSP for ethanol, leading to continued injustice for Karnataka. Export restrictions have also caused financial losses for sugar factories. Only 10 lakh metric tonnes of sugar export have been permitted for the entire country. Sugar prices have not been revised for six years, while the price of sugarcane has increased every year. Due to this, factories are struggling to pay farmers according to FRP, but continue doing so as required by law," the Sugar Factory Owners' Association President said.
They appealed, "The Central Government has not raised the MSP in line with the FRP. Since 2019, there has been no increase in MSP or ethanol prices. The State Government should also write to the Centre demanding action."
CM Siddaramaiah responded, "I had already written to the Prime Minister a long time ago urging for an MSP increase. The Centre has not acted so far. Even Union Ministers from Karnataka haven't supported sugarcane farmers or discussed the issue with the PM. What can we do?"
Factory owners expressed that "Running sugar mills is very difficult. Even after producing sugar, ethanol, and electricity, we are under financial stress and face criticism from farmers. We generate employment and contribute significantly to the rural economy, yet we suffer losses due to Central policies and farmer pressure. If this continues, it will be impossible to run the mills. If necessary, the government itself can take over our mills."
Siddaramaiah said, "If running mills is as hard as you say, how did those who owned one mill now end up owning two or three? What will you say to farmers who ask this question?" The owners added, "It is difficult to pay the amount demanded by farmers. The State Government should extend financial support." Minister Shivanand Patil suggested, "Then all of you should come together and tell the truth before the media that the current crisis is due to Central Government policies and write a letter to the Centre stating this."
Siddaramaiah also displayed a letter written by Maharashtra CM Devendra Fadnavis to the Centre urging an MSP hike and said, "Let us also press the Prime Minister like this."
Karnatka CM further added that the State Government assured that it was ready to consult and provide solutions to the issues faced by factory owners. The Belagavi Deputy Commissioner has fixed the sugarcane price at Rs 3,200 per tonne (excluding cutting and transport). The EID Parry Co-operative Sugar Factory is currently paying Rs 3,211 per tonne to farmers.
The Chief Minister asked, "If they can pay that much, why can't the others?" He added that a letter requesting that the MSP of sugar be fixed at Rs 41 per kg has already been sent to the Prime Minister and said, "Once the PM grants time, we are ready to lead a delegation to Delhi even tomorrow."
CM Siddaramaiah said that sugar factories should create awareness among farmers to avoid premature harvesting and take steps to improve sugar recovery levels.
Earlier today, farmers' protest at Hattaragi toll plaza in Belagavi district turned violent as stone pelting occurred, damaging several vehicles, as they continue to protest over the issue of fixing sugarcane price. Police personnel are present at the spot.
Meanwhile, protesting sugarcane farmers in Karnataka allegedly threw slippers at State Minister Shivanand Patil's car when he was leaving the protest site in Belagavi on November 6.
The protest by sugarcane farmers demanding a higher price for their produce entered its eighth day in Belagavi on Thursday. The protestors also blocked the Pune-Bengaluru National Highway.
The farmers are demanding Rs 3,500 per tonne for their produce. (ANI)