Sugar factories in Karnataka’s Belagavi rise cane price amid competition from Maharashtra
Sugar factories in Karnataka’s Belagavi district are offering higher, sugar-price-linked cane payments to prevent farmers from diverting produce to Maharashtra. Growers could receive ₹4,350 per tonne or more if sugar prices reach ₹55/kg, following protests and an agreement on additional profit-sharing.
Belagavi: Sugar factories in Belagavi district, which were initially reluctant to pay Rs 3,600 per tonne as the first instalment for the 2026-27 crushing season, are now offering higher prices linked to the selling price of sugar, sources said. Sugarcane growers could receive up to Rs 4,350 per tonne or more if sugar prices rise to Rs 55 per kg.
According to sources, facing competition from factories in neighbouring Maharashtra, sugar factories have announced attractive prices to prevent farmers from diverting their produce to the neighbouring state.
Drought has affected sugarcane yields in the district, while the delay in the commencement of the crushing season has caused some of the standing crop to dry up.
Farmers under the banners of Karnataka Rajya Raitha Sangha and Hasiru Sene had staged protests for over a month, demanding Rs 5,500 per tonne. Their demand included Rs 4,500 from sugar factories and Rs 1,000 from the state government, citing tax revenue earned from sugar and its by-products.
Farmers also marched to Dharwad to stage a protest outside the residence of Union Food and Consumer Affairs Minister Pralhad Joshi, demanding an increase in the minimum selling price of sugar from Rs 31 to Rs 60 per kg. They argued that a higher minimum selling price would enable factories to pay better cane prices.
Committee constituted
The Centre has constituted a committee to examine the farmers’ demands. November 26 has been set as the deadline for fulfilling their demands, which also include non-discriminatory procurement of ethanol produced by sugar factories in Karnataka.
Following continued protests that prevented factories from commencing crushing operations, Public Works and District In-charge Minister Satish Jarkiholi, along with Zilla Panchayat CEO and in-charge Deputy Commissioner Rahul Shinde, brokered an agreement last week. Factories agreed to pay Rs 3,600 per tonne as the first instalment and share additional profits arising from higher sugar prices. Crushing operations began last week.
Factories near the Maharashtra border have announced first instalments exceeding the agreed amount and disclosed the additional payments farmers could receive depending on sugar prices.
Shri Halasidhanath Co-operative Sugar Factory (Multi-State) in Nipani, has announced Rs 3,770 per tonne as the first instalment and an additional Rs 100 per tonne for a recovery rate of 11.50. It has promised further payment of Rs 200 per tonne if sugar sells at Rs 50 per kg, Rs 400 at Rs 55 per kg and Rs 600 at Rs 60 per kg. These payments will be cleared before the next crushing season.
Venkateshwar Sugars of Nipani, Shirguppi Sugars, Ugar Sugars of Ugar, Arihant Sugars of Jainapur and other factories have also announced cane prices linked to sugar selling rates.
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Source : Deccan Herald
