Karnataka Chief Minister Siddaramaiah met Prime Minister Narendra Modi in New Delhi on Monday and submitted a detailed petition urging the release of long-pending funds and approvals for several key state projects. The requests include establishing AIIMS in Raichur, clearing major irrigation proposals, revising the Minimum Support Price (MSP) for sugarcane, assured ethanol offtake and releasing compensation for flood damage.
In the memorandum, Siddaramaiah sought the Prime Minister’s intervention for “the establishment of AIIMS in Raichur, fixing of sugarcane prices, release of Rs 2,100 crore towards flood relief, and funds for major irrigation projects.”
The Chief Minister highlighted the financial strain on sugarcane growers, noting that the sugar MSP has remained unchanged at ₹31 per kg, which has affected the ability of sugar mills to pay farmers on time.
He explained, “Our Government Order mandates an additional payment of ₹100 per tonne as a second instalment, over and above the mills’ agreed price. To support this, the State Government has committed to bearing 50% of this additional amount (₹50 per tonne), while mills bear the remaining ₹50. This intervention ensures a total net price (excluding harvesting and transport costs) of ₹3,200 per tonne for a 10.25% recovery rate and ₹3,300 per tonne for an 11.25% recovery rate. This decisive action, backed by state funds, has defused the immediate crisis and halted protests. However, while the G.O. has provided essential relief, it has not fully resolved the issue, as the mills’ financial difficulty stems directly from the stagnant MSP of ₹31 per kg.”
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.
