Karnataka Minister Says Sugar Mills Won't Crush Cane Without Farmers' Agreement

Karnataka Minister and sugar factory owner Satish Jarkiholi stated in Belagavi that sugar factories will not start crushing operations without the consent of farmers. He noted that factory owners are currently unwilling to take risks due to uncertain prices and policy changes.

Centre's Role

The minister accused the Central government of playing politics over sugarcane and sugar issues. He explained that sugar and sugarcane are strictly regulated commodities governed entirely by Central laws, which include the Minimum Selling Price for sugar and the Fair and Remunerative Price for sugarcane. The Union government also controls ethanol trade and pricing, and recently decided against allowing oil companies to buy ethanol produced from sugarcane.

Dialogue Needed

Jarkiholi stated that confusion over price fixation stems from a lack of understanding among some leaders and the general public. He emphasized that such issues require dialogue and decisions must balance the demands of farmers with the financial health of the factories. Both farmers and sugar mills are now jointly demanding a revision of the sugar MSP to improve the financial condition of mills.

Context

Sugarcane pricing and sugar production in India involve a delicate balance between agricultural producers and industrial mill owners, often intersecting with national-level economic policies and agricultural pricing regulations set by the Union government.