Centre To Review Sugar MSP As Karnataka CM Siddaramaiah Says His Request To PM Modi Prompted Move Amid Farmer Unrest

Bengaluru: Karnataka Chief Minister Siddaramaiah on Wednesday claimed credit for the central government's decision to consider industry's demand to hike the minimum selling price of sugar.

He also pointed out that the move comes following his meeting with Prime Minister Narendra Modi on the issue.

Union Food and Consumer Affairs Minister Pralhad Joshi on Tuesday said the Centre has allowed exports of 15 lakh tonne of sugar for 2025-26 marketing year starting October and will look into the industry's demand to increase the minimum selling price of the sweetener.

The minimum selling price of sugar has remained unchanged at Rs 31 per kg since February 2019. Sugar industry's apex body ISMA has been demanding that the price be enhanced to Rs 40 per kg in view of an increase in production cost.

"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.

Deputy CM D K Shivakumar said sugar factories have demanded before the CM and him about the need to increase sugar prices as it has been seven to eight years since they were last increased. "So we have made a request to the PM."

"Both farmers and factories should benefit. If factories are there, farmers will be there, and similarly, if farmers are there, factories will be there...so there was demand from our side too to increase sugar price, as Centre decides on the issues raised by the factories like -- sugarcane, molasses, also power, rate of interest from banks. We had requested the Centre to do justice," he said.

Expressing happiness over Pralhad Joshi's statement, he said, "He (Joshi) too has understood (the situation)."

Siddaramaiah met PM Modi in Delhi on Monday, during which he discussed various issues concerning the state, and presented a wide-ranging memorandum that pressed for several long-standing state demands, including the sugarcane farmers issue.

After the meeting, the CM had said that the MSP (minimum selling price) for sugar has been frozen at Rs 31 per kg, leaving mills unable to pay farmers the fair and remunerative price.

He had urged the prime minister to revise the sugar MSP to ensure mills can pay farmers, provide assured ethanol offtake for Karnataka distilleries, issue a Central H&T (harvesting and transport) cost notification enabling states to ensure transparent, farmer-friendly pricing.

The CM's meeting had come following Karnataka witnessing intense protests by sugarcane farmers due to the pricing gap.

After marathon discussions with farmers and mill owners, the state intervened and issued a GO (government order) ensuring an additional Rs 100 per tonne for farmers - half paid by the state and half by mills - securing a net cane price of Rs 3,200-Rs 3,300 per tonne of sugarcane based on recovery.

(Except for the headline, this article has not been edited by FPJ's editorial team and auto-generated from an agency feed.)