Karnataka raises cane price, farmers call off stir

Bengaluru: The Karnataka government has announced an increase of ₹100 per tonne in the sugarcane procurement price, following sustained protests by sugarcane farmers in several districts. The additional payment will be shared equally, with ₹50 per tonne to be paid by sugar mills and ₹50 per tonne by the State government.

The decision comes amid ongoing agitations demanding higher and uniform sugarcane prices. While the revised rate has prompted farmers in parts of Belagavi to withdraw their protests, farmers in Bagalkote district have continued their agitation, insisting on a minimum price of ₹3,500 per tonne.

FRP Linked to Sugar Recovery Rate

Sugarcane pricing is determined based on the Fair and Remunerative Price (FRP) announced by the central government, linked to the sugar recovery percentage.

For the 2024–25 crushing season, the Centre has fixed FRP at ₹3,550 per tonne for 10.25% recovery, inclusive of cutting and transportation charges.

In Karnataka, sugar mills had agreed to pay ₹3,200 per tonne excluding harvesting and transport, which led to the farmer protests.

Under the FRP formula:

For recovery above 10.25%, ₹346 per tonne is added for every 1% increase.

For recovery between 9.50% and 10.25%, rates are reduced proportionally.

For recovery 9.50% or below, FRP is ₹3,290.50 per tonne.

Recovery Rates and Factory-wise Payable FRP

According to data submitted to the Chief Minister by the Cane Development and Sugar Commissioner:

Karnataka has 81 sugar mills.

Around 27 mills record recovery above 11%.

Belagavi district, with 29 mills, has an average recovery rate of 11.31%, where payable FRP ranges from ₹3,747 to ₹4,188 per tonne, depending on recovery.

Bagalkote’s average recovery is 10.90%, with payable FRP ranging between ₹3,609 and ₹4,111 per tonne.

Other districts show recovery varying from 8.6% to 11.5%.

Harvesting and Transport Charges Revised

For 2025–26:

Local harvesting gangs: ₹439/tonne

Migratory harvesting gangs: ₹514/tonne

Transport charges vary from ₹273 to ₹421/tonne based on distance.