Karnataka Cane Row: CM Writes to Union Minister Prahlad Joshi
Karnataka Chief Minister D K Shivakumar has written to Union Minister Prahlad Joshi seeking urgent central action on five demands linked to sugarcane pricing and the sugar and ethanol policy. The development follows continuing protests by cane growers in the state.
The letter refers to a meeting at Krishi Bhawan on October 14, 2026, in which the state was represented by Cooperation Minister Laxman Savadi, Agriculture Minister Narendra Swamy and Sugarcane Minister Rudrappa Lamani. The Chief Minister stated that the demands raised by farmers and the state government concern cane price fixation, a matter under central authority through the Sugarcane Control Order, 1966 and the Sugar Control Order, 2025.
The first demand is a cane price based on the Swaminathan Commission's C2 plus 50 per cent formula. Farmers want Rs 5,500 per tonne at 10.25 per cent recovery, while the present FRP is Rs 3,650 per tonne.
Second, the base recovery under FRP should be brought back to 9.5 per cent. The rise from 8.5 per cent to 10.25 per cent has cut the base price for farmers in low-recovery areas. The state had recommended Rs 4,440 per tonne at 9.5 per cent recovery on January 16, 2026.
Third, the minimum selling price of sugar needs to be raised. It has been fixed at Rs 31 per kg since February 14, 2019, whereas the state had recommended Rs 41.50 per kg on August 9, 2024.
Fourth, cane-based distilleries in Karnataka should get a reasonable share of ethanol allocation. The state received 117 crore litres in ESY 2025-26 against a capacity of 225 crore litres. The state had recommended Rs 73, Rs 67 and Rs 61 per litre for ethanol.
Fifth, the Dr Rangarajan revenue-sharing formula should be revised so that ethanol income is also shared with farmers.
To build trust, the state has introduced several measures, Shivakumar said. Agricultural scientists inspect mills twice a month to check recovery, with farmer leaders present. All mills have been asked to obtain NABL accreditation. The state's average recovery improved from 10.50 per cent in 2024-25 to 11.09 per cent in 2025-26.
Digital load cells have been fitted in all 81 mills under the SOP of November 27, 2023, and are tested every 15 days to ensure fair weighment. There are free APMC weighbridges in 170 taluks, and a Rs 5 lakh reward is available for proof of weighment fraud.
Shivakumar argued that applying the Tamil Nadu model of State Advised Price (SAP) would cost the state Rs 4,090 crore annually, and that it cannot replace reforms in FRP, MSP and ethanol policy. He said 99.85 per cent of 2025-26 cane payments have been completed and mills have paid Rs 500 to Rs 600 per tonne above FRP. The state has also spent Rs 290 crore of its own to provide an extra Rs 100.
He asked the Centre to revise sugar MSP for the current season, review the October 22, 2026 ethanol directive after the February 2027 crop estimates, and declare FRP with and without harvesting and transport charges. This, he said, would help end the agitation and allow the crushing season to begin.