Bengaluru, March 17 Karnataka Sugar Minister Shivanand Patil said on Tuesday that the state government had taken multiple measures to support sugarcane farmers and had fulfilled its promise of providing additional financial assistance, while asserting that most farmers were satisfied this year.
Responding to BJP MLC N Ravikumar during zero hour in the legislative council, Patil said the government had already acted on several farmer-centric demands and continued to explore further support measures for both farmers and sugar factories.
"In Karnataka's history, if any government has supported sugarcane farmers twice, it is the government of Siddaramaiah. This time as well, we had promised to provide Rs 50 per tonne from the government and Rs 50 per tonne from factory owners, and we have fulfilled that promise," the minister said.
He maintained that farmers are not in distress; in fact, most farmers are satisfied this year, adding that the government would continue efforts to ensure their well-being.
However, Patil questioned the nature of the issues raised by Ravikumar, stating, "Most of the issues you mentioned seem to favour factory owners. I am not sure whether you are speaking on behalf of farmers or factory owners."
He noted that the government had also taken steps to address concerns of sugar mill owners.
The minister said that the Power Purchase Agreements (PPAs) with sugar factories for cogeneration had not been renewed in some cases, earlier, due to the availability of cheaper wind and solar energy.
"Some PPAs have been cancelled, while some continue...We are considering reviewing this and possibly entering into new PPAs next year," he said, adding that open access allowed factories to sell power in other states where tariffs were higher.
He further said the government was examining demands such as exemption of water usage tax and extending support to both cooperative and private sugar mills.
Highlighting issues requiring central intervention, Patil said the Minimum Support Price (MSP) for sugar had not been revised since 2019 despite repeated representations.
"We have suggested differential pricing, one for essential consumption and another for industrial use," he said, citing large-scale usage by beverage companies.
On ethanol, he said, while incentives like a six per cent interest subvention were provided, lack of regulation on production capacity had led to overcapacity.
"Only 10 to 13 per cent of production is being procured, making factories financially unviable," he noted.
The minister said that Chief Minister Siddaramaiah had written to the Centre on November 6 and 8, 2025, and a delegation had also met Union Minister Prahlad Joshi to press for revision of sugar MSP and higher ethanol procurement or pricing.
Inviting cooperation, Patil said he was willing to lead a delegation, including opposition members, to take up the matter with the Centre.
The minister underlined that Karnataka was among the top three sugar-producing states and emphasised the sector's importance.
"If a single factory survives, it supports around 5,000 people... this is a vital industry, and with the support from both the state and central governments, it can thrive," he added.