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Farmers

Sugarcane Farmers Flee Karnataka for Better Opportunities in Maharashtra

Strategic Insights

— 1 min read

Sugarcane farmers in northern Karnataka are fleeing to Maharashtra in search of better infrastructure, policy support, and higher prices for their produce. Thousands of cultivators from Belagavi, Bagalkot, and Vijayapura districts are now supplying cane to mills in Maharashtra's Kolhapur region, drawn by higher prices, faster payments, and transparent operations. The shift is attributed to Karnataka's sugar mills delaying payments for cane supplied since 2023, with many farmers now relying on Maharashtra's mills for fair and reliable settlements.

Key Takeaways:

  • Over 25,000 farmers in the Kittur Karnataka region now depend on Maharashtra's mills for fairer and more reliable payments.
  • Karnataka's sugar mills, including those in Belagavi district, have not cleared payments for cane supplied since 2023.
  • Maharashtra's mills pay Rs.3,400- Rs.3,500 per tonne and settle bills within 15 days, compared to Karnataka's price of Rs.2,900- Rs.3,050 with often delayed payments.
  • Multiple factors contribute to Karnataka's lag, including lower sugar recovery rates, outdated machinery, and poor administration.
  • Farmer unions allege that many mills in northern Karnataka are controlled by politicians who delay payments worth hundreds of crores.

Statistics:

  • Over 1 million tonnes of sugarcane are crushed annually by mills in Maharashtra's Kolhapur region.
  • Karnataka's sugar mills have delayed payments for cane supplied since 2023.
  • Maharashtra's mills pay Rs.3,400- Rs.3,500 per tonne, compared to Karnataka's price of Rs.2,900- Rs.3,050.
  • Karnataka's sugar recovery rates in Belagavi and Bagalkot districts range between 9.5% and 12.8%.
  • The Centre has mandated a Fair and Remunerative Price (FRP) of rs 3,550 per tonne, which Karnataka has yet to follow.

Sources:

  • Karnataka Rajya Raita Sangha, state president Chunappa Pujeri
  • Bharatiya Krushik Samaj, president Siddagouda Modagi
  • Sugar sector analyst Rayanna R.C.
  • Hindustan Times, October 28 article

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