Centre must reconsider policy regarding sugarcane farmers: Siddaramaiah

Bengaluru, Nov 8 Karnataka Chief Minister Siddaramaiah said on Saturday that the Centre must reconsider its policy to ensure that sugarcane farmers receive their due in price, respect, and justice.

In his letter addressed to Union Minister Pralhad Joshi, Siddaramaiah said, “Union Government must reconsider its policies and take immediate steps to ensure that the sugarcane farmers of Karnataka receive their due in price, in respect, and in justice.”

Siddaramaiah said that the Union government continues to evade the core issue, which is the widening gap between the cost of cultivation and the price realisation of sugarcane, which has pushed lakhs of farmers into distress.

He stated that the Fair and Remunerative Price (FRP) fixed by the Central Government at Rs 355 per quintal at 10.25 per cent recovery is being projected as a major achievement, with claims of a 105.2 per cent margin over the cost of production.

The Chief Minister pointed out that every farmer in Karnataka knows that since 2014, the cost of fertilisers, labour, transportation, and other inputs has more than doubled, while the FRP has increased at a compound annual growth rate (CAGR) of just 4.47 per cent, from Rs 210 per quintal in 2014 to Rs 355 today.

He said that, moreover, the FRP was not increased for two consecutive years during the NDA regime, which resulted in severe losses for farmers, each of those years causing an average loss of Rs 20 per quintal to the growers.

“During the UPA years, when the FRP system was implemented to ensure farmers’ dignity and livelihood security, the CAGR was 12.96 per cent,” he said.

Siddaramaiah said that while it was 9.5 per cent during the UPA, the NDA government raised it to 10.25 per cent, reducing the effective FRP.

The Chief Minister emphasised that on a comparable 9.5 per cent recovery rate, the present FRP is only Rs 329 per quintal, making the real growth a meagre 3.8 per cent CAGR.

“This manipulation of numbers has betrayed the farmers, who deserve transparency, not tokenism,” Siddaramaiah pointed out.

The Chief Minister said that the Union Minister’s letter mentions ethanol blending and the increased ethanol procurement as a boon to the sugar sector. However, even here, despite ethanol blending reaching 10 per cent by 2023, the reality remains far from what is being projected.

“The ethanol supply from Karnataka distilleries has increased marginally, from 38 crore litres in 2022-23 to just 47 crore litres in 2024-25, while the installed capacity stands at 270 crore litres. The Union Government’s claim of massive ethanol procurement is not backed by its own data,” he said.

Siddaramaiah said that even though ethanol blending was less than 5 per cent in 2013 and the recovery rate was 9.5 per cent, the FRP recorded a robust CAGR of 12.96 per cent during the UPA period.

“Now, with ethanol blending at around 20 per cent and the recovery rate at 10.25 per cent, the CAGR has dropped to just 3.8 per cent,” he said.

The Chief Minister added that, unfortunately, the Union government has not evolved a pricing mechanism that ensures this equitable distribution, adding that as a result, farmers continue to remain vulnerable to unscientific FRP and recovery rates, even when the overall sector is performing better.

--IANS

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