Karnataka CM Siddaramaiah Faces Pressure Amid Sugarcane Pricing Crisis

Karnataka Chief Minister Siddaramaiah held a crucial meeting on Friday with sugarcane factory owners and farmers at Vidhana Soudha to address growing concerns over sugarcane pricing, ethanol production, and exports. In response to stakeholder concerns, the CM pledged the state's support for farmers and asked factory owners to play their part in resolving issues.

The discussions highlighted the jurisdictional challenges, with owners pointing out that sugar production, ethanol pricing, and export decisions are under Central Government control. Owners criticized central policies, noting that South Indian mills suffer disadvantages compared to those in the north. Siddaramaiah reiterated his commitment to farmers, ensuring that the state government would tackle issues within its domain.

The CM also addressed a proposal to levy a 60-paise-per-unit tax on electricity from sugar mills, promising reconsideration. Factory owners led by Murugesh Nirani advocated for parity with Maharashtra's power purchase agreements and urged the withdrawal of the proposed tax. They also called for adjustments in the minimum distance rule between factories and for support in boosting ethanol blending in aviation fuel. Additionally, they requested state intervention in advocating a Minimum Support Price (MSP) hike and ethanol price revision at the central level.

Factory owners expressed dire financial pressures due to non-revised MSP for ethanol since 2019 and export restrictions. Leaders detailed how unresolved central policies force them to confront financial challenges while striving to meet the Fair and Remunerative Price (FRP) for farmers. The lack of MSP adjustment has driven Karanataka's sugar industry to a precarious financial situation.

Responding to these concerns, CM Siddaramaiah emphasized his ongoing communication with the Prime Minister and expressed frustration at the lack of support from Karnataka's Union Ministers. Factory owners stressed the impracticality of continuing operations under current conditions, suggesting a possibility of government takeover if financial situations don't improve. Chaos in Belagavi surged as protesting farmers demanded a Rs 3,500-per-tonne rate, leading to violence at Hattaragi toll plaza.

Farmers allegedly resorted to throwing slippers at State Minister Shivanand Patil's vehicle during protests that spilled onto the Pune-Bengaluru highway. Facing demands and pressure, CM Siddaramaiah reassured factory owners of the state's willingness for continued dialogue and solutions, with a call to action for a delegation to Delhi, contingent on the Prime Minister's availability.