Hirekop Rajan Samuel

Belagavi, 27 Oct

Thousands of sugarcane growers from Northern Karnataka are supplying their crop to mills across the Maharashtra border, lured by higher prices, prompt payments, and greater transparency.

Farmer organisations, including the Karnataka Rajya Raita Sangha and Bharatiya Krushik Samaj, have blamed the State government’s policies, lower procurement prices, and delayed payments for the exodus.

“Karnataka’s sugar mills, especially in Belagavi district, have not cleared dues for cane supplied since 2023,” said Chunappa Pujeri, State President of the Raita Sangha. “In Maharashtra’s Kolhapur district, mills pay Rs 3,400–3,500 per tonne and clear payments within 15 days. In Karnataka, the rate is Rs 2,900–3,050, and payments are often delayed by more than a year.”

According to farmer groups, over 25,000 growers from the Kittur Karnataka region regularly supply cane to Kolhapur-based mills such as Hemaras, Harali, Hamidwadi, Shahu, Datt, Gurudatt, and Panchaganga, which together crush over 10 lakh tonnes annually.

Bharatiya Krushik Samaj President Siddagouda Modagi said Maharashtra mills also have fairer practices. “Many mills in Karnataka manipulate weighing and sugar recovery calculations. We have protested repeatedly against such irregularities,” he said.

Modagi warned that the steady outflow of cane is eroding Karnataka’s agricultural tax revenue. He also criticised the State government for failing to announce the crushing season or fix cane prices, even as Maharashtra begins operations on 1 November. “The Centre has set the Fair and Remunerative Price at Rs 3,550 per tonne, but Karnataka has yet to implement it,” he added.

Sugar industry expert Rayanna RC attributed the price gap partly to lower sugar recovery rates—9.5 per cent to 12.8 per cent in Belagavi and Bagalkot districts—compared to higher yields in Kolhapur. “Old machinery and inefficient operations delay crushing and payments,” he said, noting that several northern mills are running losses due to poor management and inadequate State support.

Farmer groups allege that many sugar mills in North Karnataka are owned by politicians who delay payments worth hundreds of crores. However, Congress MLC and Harsha Sugar Mills owner Channaraj Hattiholi rejected the charge, saying, “Since inception, I have cleared all payments promptly and maintained transparency.”