Belagavi sugar factories cannot start crushing without farmer consent, says minister
Minister Satish Jarkiholi stated that factory owners are unwilling to take risks regarding uncertain prices or policy changes.
Karnataka Minister Satish Jarkiholi said in Belagavi on Monday that sugar factories cannot begin crushing operations without the consent of farmers. According to The Hindu, Jarkiholi, who also owns a sugar factory, noted that factory owners are hesitant to take risks related to policy changes or uncertain prices.
The minister stated that the Central government is playing politics regarding sugar and sugarcane issues. He explained that because sugar and sugarcane are highly regulated commodities, all related laws are Central laws. He said the Union government fixes or revises the Minimum Selling Price (MSP) for sugar and the price for sugarcane.
Jarkiholi said that sugar factories are prepared to pay higher prices if the MSP for sugar is revised. He added that sugar mills believe an increase in the MSP would improve their financial condition. He also mentioned that the Union government controls ethanol trade and pricing, noting a recent decision not to allow oil companies to buy ethanol produced from sugarcane.
The minister said the state government has minimal involvement in addressing the problems raised by sugarcane growers. He suggested that the confusion regarding price fixation stems from a lack of understanding of basic facts by some leaders and the public.
A deadlock regarding sugarcane prices is nearing resolution following a 10-hour discussion with Karnataka Chief Minister D.K. Shivakumar. Farmers and mill owners are expected to announce a final decision in two days.