Demand to Determine Sugarcane Prices on an 'Ex-Field' Basis in Karnataka

Mysuru: When a high-level committee—constituted by the Central Government to suggest measures for addressing the problems and grievances of sugarcane farmers—arrived in Karnataka, representatives of sugarcane growers' organizations urged them to shift the basis for determining the Fair and Remunerative Price (FRP) of sugarcane from 'ex-factory' to 'ex-field'. This change would ensure that farmers receive the full benefit of the FRP and are relieved of the costs associated with harvesting and transporting the crop. Currently, sugar mills deduct these expenses before paying the FRP to farmers, preventing them from receiving the full amount.

On October 29, farmers from Karnataka met with members of the Central Committee in Bengaluru to present their views regarding sugarcane pricing and production costs. Following a vigorous protest by sugarcane growers in North Karnataka over various demands, the Central Government had formed this high-level committee, chaired by a former member of NITI Aayog.

The committee will now assess and analyze the issues raised by the sugarcane farmers and submit a report to the Central Government, including recommendations for appropriate measures. The government may then make a decision based on these findings.

In terms of sugar production, Maharashtra ranks first, Uttar Pradesh second, and Karnataka third. Sugarcane farmers in Maharashtra and Karnataka are demanding that the FRP for sugarcane be set between ₹4,500 and ₹5,500 per tonne, or alternatively, that the costs of harvesting and transportation be borne directly by the sugar mills.