Protecting Farmers is Our Duty: CM DK Shivakumar Tackles Sugar Crisis in Belagavi
Karnataka CM DK Shivakumar meets sugar factory owners and farmers in Belagavi to resolve MSP disputes and pending industrial dues.
In a decisive move to quell a growing agrarian crisis, Karnataka Chief Minister DK Shivakumar conducted a series of high-level deliberations in Belagavi on Monday. The Chief Minister engaged in separate, intensive discussions with sugar factory owners, local MLAs, and farmer representatives to resolve a persistent deadlock over minimum support prices (MSP) and outstanding industrial dues.
The urgency of these meetings follows significant pressure from agricultural unions and concerns voiced by farmers during the Chief Minister's recent visit to Kittur. Addressing the media, CM Shivakumar reiterated that the administration's primary obligation is to safeguard the welfare of the cultivators, though he acknowledged that the struggles of the factory owners cannot be ignored.
"Two important meetings are on the issue. I have asked the opinions of officers and MLAs, the MLAs and farmer representatives," Shivakumar stated. "It is our duty to protect the farmers. I will listen to the factory owners' suffering... A decision should be made after discussing with everyone. The central government should also be taken into confidence."
The Factory Owners' Dilemma
While the farmers are fighting for better procurement rates, the sugar mills are grappling with their own financial hurdles. Belagavi District In-charge Minister Satish Jarkiholi, who coordinated the negotiations, highlighted several critical pain points that have previously stalled any agreement:
- Liquidity Crunch: Industrial plants are facing severe financial strain because payments for electricity purchased from the factories have not been received.
- Power Agreements: Mill owners are pushing for power purchase agreements to be extended to a more sustainable 20-year term.
- Tax Burden: There is a strong demand to reduce the recently increased water taxes levied on sugar factories.
- MSP Restructuring: The owners argue that a revised Minimum Support Price (MSP) structure is essential, claiming it would eventually benefit both the processors and the sugarcane growers.
Seeking a Balanced Compromise
The state government is currently attempting to engineer a balanced compromise package that satisfies both ends of the supply chain. On one side, farmer representatives are demanding immediate and firm assurances regarding the rates at which their sugarcane will be procured.
On the other side, the factory owners maintain that without relief on power arrears and utility taxes, they cannot sustain the operations necessary to support the farmers.
Minister Satish Jarkiholi noted that the government is actively trying to solve the problem, stating, "Those demands were not met, so let's see what happens in today's meeting."
With the coordination of local administrative teams and the direct intervention of the Chief Minister, the Karnataka government is expected to finalize a roadmap to resolve the crisis following these back-to-back stakeholder sessions in Belagavi.