Bengaluru: Karnataka Chief Minister D K Shivakumar has written to Prime Minister Narendra Modi seeking urgent policy interventions to ensure remunerative prices for sugarcane farmers and address mounting challenges faced by the state’s sugar industry.
In his letter, Shivakumar raised five key demands, including revision of the minimum selling price (MSP) of sugar, review of ethanol production restrictions, restoration of the Fair and Remunerative Price (FRP) base recovery rate, separate pricing for domestic and commercial sugar, and changes to the revenue-sharing formula.
Shivakumar pointed out that while the FRP had increased from Rs 2,750 to Rs 3,650 per tonne, the minimum selling price of sugar had remained unchanged at Rs 31 per kg since February 2019. With sugar currently selling at around Rs 45 per kg, he said revising the MSP could help protect farmers’ payments without increasing the burden on consumers.
The chief minister urged the Centre to reconsider its October 22, 2026, directive restricting ethanol production from sugarcane juice, syrup and B-heavy molasses for the Ethanol Supply Year (ESY) 2026-27. He sought a review after the February 2027 crop estimates, along with a revision of ethanol prices for sugarcane juice and B-heavy molasses, which have remained unchanged since 2022-23.
Shivakumar said Karnataka’s sugarcane-based distilleries generated Rs 5,803.7 crore in revenue from ethanol production during 2025-26. The earnings helped mills clear farmers’ payments within 14 days, he said.
He also sought restoration of the FRP base recovery rate to 9.5%, arguing that farmers in regions with lower sugar recovery should not be penalised because of differences in soil and climatic conditions.
The chief minister proposed separate minimum selling prices for domestic and commercial sugar to protect household consumers while ensuring fair prices for bulk buyers.
He also called for including ethanol and co-generation revenue in the sugar industry’s revenue-sharing formula, as recommended by a NITI Aayog task force and the Commission for Agricultural Costs and Prices (CACP). He proposed setting up a price stabilisation fund as well.
Highlighting the state’s measures to protect farmers, Shivakumar said all 81 operational sugar mills in Karnataka had installed digital weighbridges, while factory laboratories were inspected twice a month. The average sugar recovery rate stood at 11.09% during 2025-26, and 99.85% of the sugarcane dues for the season had been paid.
With the crushing season already delayed, the chief minister said farmers were awaiting clarity on key policy decisions. He urged the Centre to act promptly and introduce long-term reforms to ensure a sustainable future for sugarcane growers and the sugar industry in Karnataka.
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