Bengaluru, February 25 The Karnataka government has released ₹300 crore as financial assistance to sugarcane growers for the 2025-26 season, with ₹50 per tonne to be credited directly to farmers who supplied cane to sugar factories across the state, Minister Shivanand Patil said on Wednesday.
The assistance is part of the state's commitment to provide ₹100 per tonne over and above the Fair and Remunerative Price (FRP), with the burden to be shared equally between the government and sugar factories, he added.
"As announced by the state government, ₹300 crore has been released as financial assistance of ₹50 per tonne to farmers who supplied sugarcane to sugar factories in the state during the 2025-26 season," Patil, who holds portfolios of Sugarcane Development, Sugar, Textiles and Agricultural Marketing, said in a statement.
The minister recalled that at a meeting of sugar factory owners and sugarcane growers convened by the chief minister at Vidhana Soudha on November 8 last year, a decision was taken to provide ₹100 per tonne over and above FRP.
"It was decided that of the ₹100 assistance, the state government would bear ₹50 and the sugar factories would contribute ₹50," Patil said, adding that the government has now released its share of ₹300 crore in accordance with the decision.
Based on proposals submitted by sugar factories, the Sugarcane Development Commissioner will release the funds to the Deputy Commissioners. Directions have been issued to ensure that ₹50 per tonne is directly credited into the bank accounts of farmers, based on the quantity of cane supplied, he said.
Similarly, the Deputy Commissioners have been instructed to ensure that sugar factory managements provide their share of ₹50 per tonne to eligible farmers, Patil explained.
Providing details of the ongoing crushing season, the minister said, "So far, 521 lakh metric tonne of sugarcane have been crushed, and about 600 lakh metric tonne are expected to be crushed during the season."
During the 2025-26 season, 81 sugar factories have undertaken crushing operations, of which 29 have completed the process, he added.
According to him, the crushing season is expected to conclude by the first week of March, and the financial assistance has been calculated based on the estimated crushing of 600 lakh metric tonne, the minister added.