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Karnataka Court Weighs Higher Sugarcane Prices
9 Dec
Summary
- Court refuses to halt higher sugarcane price notification.
- Sugar mills argue they cannot afford higher prices.
- Government and factories to contribute to farmer payout.
The Karnataka High Court has refused to issue an interim stay on a November 8 notification that establishes a sugarcane price exceeding the Union government's Fair and Remunerative Price (FRP) for the upcoming 2025-2026 season. The South Indian Sugar Mills Association (Karnataka) and other industry players approached the court, citing financial distress that prevents them from paying the FRP on time.
Justice Suraj Govindraj opted not to grant an immediate stay without hearing the respondents, acknowledging the sugar industry's profitability from sugar and ethanol. The judge noted the industry's reluctance to share these profits with sugarcane growers. The case has been scheduled for further deliberation on December 17.
The sugar mills' association is seeking the quashing of the government notification, asserting that the State lacks the authority to mandate prices higher than those set by the Centre. Chief Minister Siddaramaiah had previously announced that both sugar factories and the government would contribute an additional Rs 50 per tonne of sugarcane on top of the existing purchase price for farmers.
