After marathon meetings with farmer leaders and representatives of sugar mills, chaired by Chief Minister Siddaramaiah, the Karnataka government on Friday announced an enhancement in the Fair and Remunerative Price (FRP) for sugarcane by ₹100 per tonne. Following this, farmers withdrew their protest on Friday.
The farmers will now get ₹3,300 per tonne (excluding harvesting and transportation cost) as against the FRP of ₹3,200 per tonne that has been fixed by the Centre. In the increased amount, the State government and the sugar mills will contribute ₹50 each.
All-party delegation
The State government also decided to take an all-party delegation, which will also include farmers and sugar mill representatives, to the Centre to press for increasing the Minimum Support Price (MSP) for sugar, the FRP for sugarcane, the limit for export of sugar and ethanol production and distribution. The decision came after nearly seven-hour meetings with representatives of mills and farmer leaders.
The Chief Minister has already written to Prime Minister Narendra Modi, highlighting key issues on which farmers were protesting.
The farmers have been protesting since October 30 seeking an increase in the FRP across sugarcane growing districts of Belagavi, Vijayapura, Bagalkot, Haveri, and Kalaburagi. In May, the Centre announced a FRP of ₹3,550 per tonne at the sugar recovery rate of 10.5%.
As many as 81 mills operate in Karnataka, of which one is in the public sector, while 11 are in the cooperative sector, and the rest are in the private sector. The State government estimates that about 6 crore tonnes of cane will be crushed this year as against the 5.6 crore tonnes last year.
“Both farmer leaders and sugar mill representatives have explained their problem owing to the Centre’s policy. The farmers are opposed to the FRP fixed at ₹3,100 for sugar recovery rate at 10.25% and ₹3,200 at the rate of 11.25%. We have decided to take a delegation to the Centre to discuss the issue. Though the sugarcane yield differs from district to district, the ₹100 hike per tonne will be implemented uniformly,” the Chief Minister told presspersons.
He said that the sugar mills have agreed to pay ₹3,250 per tonne as the FRP, and that the government will contribute another ₹50 per tonne. “Based on recovery rate, the FRP will be fixed in different districts. The sugar mills have asked the government to revisit the proposal to impose 60 paise tax per unit on the power being sold by them, and will consider it. Farmers have accused sugar mills of cheating them in weight and showing lower recovery rate. Farmers have urged the government to open a laboratory to check the recovery rate in front of sugar mills. They have also pointed out dues towards farmers by some factories. Separate meetings with sugar mills representatives and farmers will be convened to discuss their respective problems,” said Mr. Siddaramaiah.
CM’s queries to farmers and factory owners
In his meeting with farmers, Mr. Siddaramaiah asked the farmers if it was fair to seek compensation from the State government when the Centre had decided the MSP on sugar, the FRP on sugarcane, and the limited supply of ethanol. When sugar mills representatives – in another meeting – “expressed extreme” difficulty in running their factories and offered the government to take over, Mr. Siddaramaiah asked, “How will you respond to farmers, who have questioned you as to how those owning one factory are starting the second and third ones if running the factory is so difficult?”