Karnataka Chief Minister Siddaramaiah on Wednesday claimed credit for the Centre’s move to consider the sugar industry’s demand for an increase in the minimum selling price (MSP) of sugar, noting that the decision follows his recent meeting with Prime Minister Narendra Modi.
On Tuesday, Union Food and Consumer Affairs Minister Pralhad Joshi announced that the central government has permitted the export of 15 lakh tonnes of sugar for the 2025–26 sugar season beginning in October and will consider the industry’s request to raise the MSP. The current MSP of Rs. 31 per kg has remained unchanged since February 2019, even as the Indian Sugar & Bio-Energy Manufacturers Association (ISMA) has been seeking a revision citing higher production costs.
“Joshi has said they (Centre) will consider increasing it (minimum selling price) from Rs 31 per kg to Rs 40 per kg. I had asked for Rs 41 per kg. After I requested (the Prime Minister) they have done this,” Siddaramaiah said in response to a question, reported PTI.
Deputy Chief Minister D.K. Shivakumar added that sugar factories had approached both him and the Chief Minister, stressing that sugar prices had not been revised for seven to eight years. “So we placed a request before the PM,” he said. Emphasising that both farmers and factories must benefit, Shivakumar noted that the Centre has the authority to decide on issues related to sugarcane, molasses, power tariffs and bank interest rates. “We had asked the Centre to do justice,” he said, welcoming Joshi’s announcement.
Siddaramaiah met Modi in Delhi on Monday and submitted a detailed memorandum outlining several long-pending state demands, including concerns of sugarcane farmers. After the meeting, the Chief Minister said the frozen MSP had left mills unable to pay farmers the cane price. He urged the Prime Minister to revise the MSP, guarantee ethanol procurement for Karnataka distilleries, and issue a Central harvesting and transport (H&T) cost notification to enable transparent, farmer-friendly pricing.
The Chief Minister requests that the following demands be taken into consideration as the sustainable solution:
1. Revise sugar MSP: The single most effective measure to resolve this crisis is to immediately revise the sugar MSP from 31/kg. This will instantly improve mill liquidity, enabling them to pay the farmers’ requested price without requiring State or Central subsidies.
2. Assured ethanol offtake: We request an increased and assured procurement allocation from Karnataka’s sugar-based distilleries. This provides a stable revenue stream and directly supports mill finances.
3. H&T Cost notification: We continue to seek a Central notification that empowers States to fix or endorse a net cane price, ensuring that the H&T costs are transparently managed and do not render the FRP unviable for the farmer.
