Sugar mills across Karnataka owe farmers Rs 12,397.33 crore for cane crushing during the 2025–26 sugar season, a figure that includes harvesting and transportation (H&T) charges. Of this amount, Rs 8,058.43 crore had been disbursed by December 31, 2025, according to figures from the Commissioner for Cane Development and Director of Sugar.
Addressing a report published by Deccan Herald on Friday, Commissioner Govindreddy rejected claims that sugar mills would incur losses of Rs 4,000 crore. He said any assessment of profits or losses could only be made once the crushing season concludes and all sugar and by-products are sold. “The current crushing season runs until September 30, 2026. Drawing conclusions at this stage would be premature,” he said.
Govindreddy also noted that the state government has directed sugar factories to contribute Rs 50 per tonne, which would collectively amount to Rs 300 crore across the state’s 81 mills. The government, he added, will match this contribution by paying an equal Rs 50 per tonne, sharing an additional Rs 300 crore burden from the state exchequer. “The net additional burden on factories is only Rs 300 crore,” he said.
As of December 31, outstanding sugarcane payments total Rs 4,390.35 crore. Govindreddy described these dues as routine payments that mills are required to make to their cane suppliers in the normal course of operations.
