Karnataka : Sugarcane farmers cross over to Maharashtra mills for better prices
Many sugarcane farmers from northern Karnataka are selling their produce to mills in Maharashtra’s Kolhapur region, attracted by higher prices and quicker payments. Farmer unions say Maharashtra mills pay ₹3,400–₹3,500 per tonne within 15 days, while Karnataka mills pay less and delay payments. Farmers cite poor policies and outdated infrastructure.
Belagavi: After many medium-scale industries from northern Karnataka shifted to Maharashtra in recent years seeking better infrastructure and policy support, sugarcane farmers from the region are now following a similar path. A growing number of cultivators are selling their produce to mills across the border, drawn by higher prices, faster payments, and transparent operations, a stark contrast to the delays and lower rates at Karnataka’s own mills.
According to farmer unions, thousands of cultivators from Belagavi, Bagalkot, and Vijayapura districts now supply cane to mills in Maharashtra’s Kolhapur region, including Hemaras, Harali, Hamidwadi, Shahu, Datt, Gurudatt, and Panchaganga, which collectively crush over a million tonnes annually.
“Karnataka’s sugar mills, especially in Belagavi district, have not cleared payments for cane supplied since 2023,” said Chunappa Pujeri, state president of the Karnataka Rajya Raita Sangha. “In Maharashtra’s Kolhapur district, mills pay ₹3,400– ₹3,500 per tonne and settle bills within 15 days. In Karnataka, the price is ₹2,900– ₹3,050, and payments are often delayed by over a year.”
He said more than 25,000 farmers in the Kittur Karnataka region now depend on Maharashtra’s mills, drawn by what they see as a fairer and more reliable system.
Siddagouda Modagi, president of the Bharatiya Krushik Samaj, said the shift is not only about money but also about trust. “Many mills in Karnataka cheat farmers in weighing and calculating sugar recovery. We’ve held several protests against such irregularities,” he said. “In Maharashtra, farmers get prompt and transparent settlements.”
Modagi warned that Karnataka’s failure to act is costing the state significant agricultural revenue. He criticised the government for delaying the start of the crushing season and failing to fix the state-advised price even as Maharashtra plans to begin operations on November 1.
“The Centre has mandated a Fair and Remunerative Price (FRP) of rs 3,550 per tonne. Karnataka is yet to follow it,” he said.
Industry experts say multiple factors have contributed to Karnataka’s lag. Rayanna R.C., a sugar sector analyst, said the gap stems partly from lower sugar recovery rates in the state’s northern districts. “The recovery ratio in Belagavi and Bagalkot is between 9.5% and 12.8%, compared to much higher rates in Kolhapur. Unseasonal rains have further reduced sugar content in the cane,” he said.
Rayanna added that most mills in northern Karnataka still use outdated machinery, slowing down production and delaying payments. “Many mills here take six months to crush what modern mills in Maharashtra can process in a fraction of the time. That inefficiency hurts both farmers and mill finances,” he said.
While Maharashtra mills deduct transport and harvesting costs from farmers, mills in Karnataka often cover these expenses, narrowing their profit margins. “Several Belagavi mills are running at a loss due to poor administration and lack of government assistance,” Rayanna said, noting that the state had provided financial support to farmers in Mandya but not to mills in the north.
Farmer unions allege that many mills in northern Karnataka are controlled by politicians who delay payments worth hundreds of crores, releasing them in instalments rather than the two tranches required under state norms.
However, Congress MLC Channaraj Hattiholi, who owns Harsha Sugar Mills in Belagavi, rejected the claims. “Since inception, I have cleared all payments promptly and maintained transparency in business,” he said.
As Maharashtra’s mills prepare to start crushing in November, Karnataka’s farmers say they cannot wait for policy corrections any longer.
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Source : Hindustan Times
