Sugarcane Growers, Factory Owners Reach Agreement After Marathon Talks: CM DK Shivakumar

Belagavi: The prolonged negotiations between sugarcane growers and sugar factory owners have ended in an agreement following continuous discussions that went on until midnight, Chief Minister DK Shivakumar said on Tuesday, reiterating that the state government remains committed to protecting farmers’ interests.

Speaking to the media at the Circuit House in Belagavi and near the Karnataka Badminton Association in Bengaluru, Shivakumar said sustained efforts over two days had helped resolve the immediate impasse over sugarcane pricing. “Farmers are a great asset to this country. It is our duty to protect their livelihoods and ensure justice for them,” he said.

The meeting was attended by representatives of more than 80 sugar factories, along with legislators and other stakeholders. The financial difficulties faced by the factories and the demands of sugarcane growers were discussed in detail, he said. Shivakumar said farmers were justified in demanding a better price, particularly as the cost of essential commodities and other expenses had increased. However, the minimum selling price (MSP) of sugar had not been revised for nearly a decade, contributing to the current difficulties.

He also pointed out that sugarcane production had declined this year and crushing operations were yet to begin in several places. Any further delay could cause the crop to dry up, resulting in additional losses for farmers. Protests by growers had also continued in various parts of the state.

“Factories need farmers, and farmers need factories. They are interdependent,” he said. According to the Chief Minister, factory owners had told the government that nationalised banks were reluctant to extend loans to them, forcing them to depend on cooperative banks that charge higher interest rates. Some owners had even offered to hand over their factories to the government, saying they were struggling to manage their operations and repay existing loans.

Shivakumar cited the example of a sugar factory in Mandya district, which had earlier been handed over to a farmers’ organisation with government assistance. Despite subsequent support, the factory had not achieved the expected level of performance, he said, adding that factory owners had placed several financial and operational difficulties before the government.

The Chief Minister said an understanding had been reached during the marathon meeting in keeping with his assurance to farmers. He attributed the dispute largely to the Centre’s failure to revise sugar and sugarcane prices over the past decade.

Union Minister Pralhad Joshi had acknowledged the farmers’ concerns and assured them that a committee would be constituted to determine the price, Shivakumar said. Trusting the Union Minister’s assurance, the farmers had withdrawn their plan to lay siege to his residence.

Shivakumar said the price to be paid by sugar factories to growers would be determined in accordance with the price fixed by the Centre. Farmer representatives, including farmers’ union president Pujari, had agreed to the arrangement. However, he declined to disclose the price discussed during the meeting.

Representatives of farmers from Dakshina Kannada, Bagalkot, Vijayapura, Haveri and Mandya also participated in the discussions. Farmers had additionally sought separate pricing mechanisms for sugar sold to consumers and for commercial purposes, an issue that would require a decision by the Union government.

The Chief Minister noted that sugar factories operate in several states, including Tamil Nadu, Maharashtra, Karnataka, Bihar and Uttar Pradesh, with Uttar Pradesh having the largest number of factories. He also highlighted the financial pressure on Karnataka, which spends around ₹30,000 crore annually on providing free electricity. Despite the burden on the state exchequer, he said, the government remained committed to supporting farmers, whom he described as the state's food providers.

Shivakumar said farmers cultivating crops such as grapes, arecanut, coconut and flowers, as well as those in the dry regions of the state, had raised various demands. The government had explained its financial position to them, and discussions had taken place on their concerns. Both sides had agreed to resolve the issues through mutual understanding.

Preparations were under way for a tripartite agreement on price determination, he said. Farmers had also withdrawn their call for a shutdown, and the Chief Minister thanked them for their cooperation.“The sugarcane growers’ issue has reached a positive conclusion. Even a delay of another week could cause substantial losses to farmers. Factory owners, too, incur heavy interest costs every day,” he said.

Shivakumar expressed confidence that Union Minister Pralhad Joshi would help arrive at a favourable decision on pricing. He said farmers had assured the government that they would accept the price determined by the Centre.

Ministers Satish Jarkiholi, Laxman Savadi and Channaraj had played an important role in the negotiations by explaining the situation to both sides. Their experience in running sugar factories had also helped bring the discussions to a conclusion, he said. The Chief Minister thanked legislators, farmer representatives, MPs, ministers, officials and the media for their participation.

Asked how the month-long agitation had been resolved without imposing a financial burden on the state government, Shivakumar said the government had not made any fresh financial commitment as part of the settlement. He recalled that the previous government led by Siddaramaiah had offered ₹300 per tonne, while some factory owners had agreed to pay ₹250 per tonne. While some had made the payments, others had not, he said.

The state was already spending around ₹1 lakh crore annually on welfare programmes, including the five guarantee schemes, apart from approximately ₹30,000 crore towards free electricity. Drought conditions had also led to a 37% increase in electricity consumption this year, adding to the financial strain, he said.

“Providing additional financial assistance directly from the state government is difficult. However, the government will stand by farmers and put pressure on the Centre to address their demands,” he said.

He added that the state would meet the Union Minister to discuss the matter further. While farmers had every right to put forward their demands, he said, laying siege to a minister’s residence was not appropriate.

Mysuru Dasara traditions

Responding to questions about objections raised by Rajamata Pramoda Devi Wadiyar regarding the conduct of Mysuru Dasara, Shivakumar said he had learnt about the concerns through newspaper reports and that the government would respect the Mysuru royal family.

He said the government would examine the legal aspects raised by the royal family and hold discussions before taking a view. The issue, he added, was not a personal matter but one concerning the state and its traditions.

“The royal family has served the state for generations. We must respect that legacy and carry forward the traditions. It is difficult if allegations are suddenly made that officials did not show respect or that the elephant did not obey,” he said.

The Chief Minister said ministers and legislators had been assigned responsibilities for different days of the Dasara celebrations to ensure the festival's smooth conduct. A new elephant, Prashanth, had been brought in and trained for the event.

He said it was not possible to consult the palace on every aspect of the arrangements but assured that the established customs would be examined. Following the mishap involving an elephant in Shivamogga, he had instructed the Forest Minister to exercise caution, he added.

Describing Dasara as the state's festival, Shivakumar said it was a major event involving several arrangements and the participation of film personalities, sportspersons and dignitaries. As this was his first Dasara as Chief Minister, he said, the government had gained experience and would correct any shortcomings.

Asked about suggestions that Dasara should be celebrated for seven days, he said he was not aware of the proposal and that the historical record and established traditions would have to be examined.

He added that the arrangements had been made within the framework of democracy and the law, while keeping traditions in mind, and that the state's interests and dignity should not be compromised.

On preparations for the winter session of the Karnataka Legislature in Belagavi, Shivakumar said arrangements were under way for the session scheduled in December.

Asked about meetings with Bengaluru legislators, he confirmed that discussions had been planned on several issues. A meeting with SC/ST legislators had been called to discuss a matter related to the Supreme Court, followed by consultations with legislators and leaders from backward communities, Lingayat and Vokkaliga communities, and various organisations.

He also clarified that he would not travel to Delhi on November 1 because of the Karnataka Rajyotsava celebrations.

₹2,500 relief for farmers

Responding to a question about the pending release of ₹2,500 in relief announced for farmers during a previous Assembly session, Shivakumar said the delay was due to a technical issue. “The documents are being corrected and phone numbers are being reverified. The relief will be provided to farmers,” he said.

Karnataka committed to promoting sports

Speaking at the Karnataka Badminton Association in Bengaluru, the Chief Minister said the state government was committed to promoting badminton and other sporting activities. “India has a bright future in sports. Karnataka will contribute more medals to the country at the next Olympic Games,” he said.

Shivakumar inaugurated the Yonex-Sunrise KBA Diamond Jubilee India International Challenge 2026 on behalf of the state and wished the participating athletes success. He said the necessary facilities had been provided for competitors from different countries.

He welcomed the Karnataka Badminton Association's role in organising the international tournament and recalled that former Chief Minister S. Bangarappa had played a key role in establishing the association. Shivakumar also congratulated association president Kumar Bangarappa for taking up development initiatives aimed at helping Indian athletes win Olympic medals.

ABOUT THE AUTHOR

Bharath Anjanappa

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Bharath Anjanappa is an experienced journalist specializing in Politics and Civic issues. With over a decade (2012 till date) of writing expertise, he handles or contributes towards Bengaluru sector/area. Bharath Anjanappa has completed his graduation/post-graduation from Bangalore University (with a specialization in Finance, Marketing and HR). When not immersed in writing, he can be found spending time farming. Bharath Anjanappa is an accomplished writer with a passion for writing on current political situation and Civic issues. With 12 years of experience, he has honed his craft in various genres, including entertainment, crime, education and Politics. Bharath's diverse family history and embracing cultures have enriched his writing with unique perspectives.

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