Karnataka Factory Owners and Unions to Meet Over Sugarcane MSP Row

Karnataka government is set to mediate talks between factory owners and unions to address the rising demand for higher sugarcane Minimum Support Price (MSP) amid ongoing farmer protests across the state.

Karnataka Government Mediates Sugarcane MSP Dispute

Karnataka factory owners association and unions are expected to hold a meeting on Tuesday over the demand for an increase in the Minimum Support Price (MSP), State Minister Satish Jarkiholi said, adding that the meeting will take place under the leadership of the Deputy Commissioner (DC). Jarkiholi said representatives of the organisation would participate in the meeting and that further developments would become clear after the discussions. “There will be a meeting involving representatives from the organisation, under the leadership of the DC. We will have to wait until tomorrow to see what kind of developments come out of these discussions,” he said on Monday. He added that the duration of the ongoing situation remained uncertain and that the matter was not entirely in the government’s hands, as discussions were taking place between the factory owners’ association and the unions. “We don’t know how long this will continue. It’s not in our hands, but the discussions are ongoing between the factory owners’ association and the unions,” he said. “If the MSP is not increased, people will face a lot of difficulties,” he added.

Protests and Farmer Demands

On October 31, farmers staged a black flag protest against Karnataka Chief Minister DK Shivakumar in Mandya when the Chief Minister was said to arrive in the district. Following the protest, several protesters were taken into police custody. The ongoing Minimum Support Price (MSP) and pricing crisis in Karnataka centers around a major sugarcane and sugar price dispute between farmers, sugar mill owners, the Karnataka state government, and the Central government.

Key Demands from Farmer Activists

Prem Chougala, General Secretary of Karnataka Raitha Sangha Hasiru Sene on Saturday (October 24), putting forward three demands of farmer activists, said, "The demands include a support price of Rs 1,000 per tonne from the state government, a price of Rs 4,500 per tonne from sugar factories, and action to stop alleged malpractice involving deductions for moss or muck during weighing."

Ethanol Allocation and Market Pricing

Earlier on October 17, Farmers from sugarcane-growing districts of Karnataka raised three demands before the state and Central governments amid their ongoing protest, with Belagavi Deputy Commissioner Mohammad Roshan stating that both governments have assured them that decisions would be taken in the interest of farmers. "Firstly, they want the sugar MSP increased to Rs 60, though they are ready to discuss it with the government. The farmers have also demanded 100 per cent ethanol allocation for Karnataka from oil marketing companies (OMCs). Roshan said that only 30-40 per cent of the allocation was made to the state last year, leaving several ethanol and sugar factories underutilised and causing cash flow problems that affected their ability to pay farmers", he said. He added that the demand, if met, would also benefit maize growers.The third demand is for separate pricing of domestic and commercial sugar, with commercial sugar priced higher to improve returns for sugar mills and farmers. (ANI)

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