Factories are ready to pay higher prices if sugar MSP is revised: Satish Jarkiholi

A permanent solution to the problems of sugarcane growers lies in the Union government revising the Minimum Selling Price for sugar. The State government has little role to play in resolving issues raised by sugarcane growers, Minister and sugar factory owner Satish Jarkiholi claimed here on Sunday.

“As a Minister and sugar factory owner, I attended the two meetings held by Chief Minister D.K. Shivakumar in the Suvarna Soudha. During the meeting, sugar factories told the Chief Minister that they will make increased payment to farmers if MSP is revised.

I am confident they will keep their word,” he said. “However, confusion persists among farmers and sugar factory owners regarding the fixation of prices. It can be ended if the Union government announces new MSP,” he said.

“Farmers are demanding that factories pay higher prices. But to do that, the sugar factories must first possess the financial capacities. This issue is complex and does not fall entirely within the purview of the State government.

Sugarcane is a regulated crop and most of the laws and rules empower the Central government in this regard,” he said. “It is the Union government that fixes MSP and Fair and Remunerative Price for sugarcane. An increase in the MSP will provide financial relief to sugar factories.

Consequently, factory owners will pay a higher price to farmers for every tonne of sugarcane. Therefore, we have urged the Central government to take an appropriate decision in the matter,” he said. To a query, he said that cooperation and coordination between Union and State governments is essential for resolving the issues facing sugarcane growers.

He complained that the Union government has not released adequate funds for certain schemes and that it has not devolved funds collected as taxes from the State. In such a case, the State government is forced to arrange the necessary finances to continue the projects.

He said that factories in Belagavi district are paying ₹3,500 per tonne of sugarcane which is among the highest in the State. “The prices in most other districts are lower. A solution to this issue must be found by taking into account both the demands of farmers and the financial situation of the factories,” he said.

He said that there is a general talk that sugar mills are cheating farmers in weighing their inputs. “We need to put in place a system where farmers weigh their own produce and bring it to the factory gates. We also need weighbridges every 10 km or so, on the way to the factory from the farm.

Till now, the State government has not received any specific complaint about mills cheating farmers in weighing. If we get any complaint, then, an inquiry will be carried out,” he said. He defended the increase in milk prices by the Karnataka Milk Federation.

It has been done to help dairy farmers. The State government allowed the milk union to raise the prices to provide financial benefits to milk producers, he said. “The price hike will result in higher earnings for farmers.

The average hike in price of milk is ₹8 per litre, effective from November 1. Of this increase in price, ₹7 will go directly to the milk producers, while the remaining ₹1 will be allocated to the milk unions. This has been done because the costs associated with maintaining cattle such as fodder, animal feed and labour are continuously rising,” he said.