Farmers associations have demanded that sugar factories pay higher prices for sugarcane due to the drought and reduced yield this year.
Karnataka Rajya Raitha Sangha and Hasiru Sene leaders submitted a memorandum to the State government demanding that it ensures that all the factories pay at least ₹4,000 per tonne of sugarcane supplied.
Bheemasheppa Durgannanavar and other leaders have urged the State government to ensure that the factories pay at least ₹4,000 per tonne of sugarcane.
“The Union government has fixed a fair and remunerative price for sugarcane at ₹3,150 per tonne, which is 3.3% more than the price announced last year. However, this is not enough. Farmers will need at least ₹4,000 per tonne of sugarcane to tide over the losses suffered by them due to drought,” he said.
“Some factories like Satish Sugars have announced a procurement price of ₹3,000 per tonne, which is less than the fair and remunerative price. Sugar is likely to fetch higher prices as sugarcane production is low. Factories should hence pay higher prices for sugarcane,” he said.
Some other leaders argue that sugar factories should treat farmers as shareholders and share their profits with them.
“All factories are now buying sugarcane in bulk, as raw material. Post the purchase, the relationship between the farmers and the factories ceases. The farmers do not get any more money even if the factories make higher profits. We want this system to change. Farmers should get a part of the profits in all the products manufactured by the factories,” Krishik Samaj leader Sidagouda Modagi said.
Factories have diversified into various products now. They are making ethanol, bio-fertilizers, electricity, oxygen and other gases, apart from traditional products such as sugar, molasses and bagasse.
All these activities bring money to the factory management. But the farmers do not get a percentage of the profits from the sales of such material. “We demand that the government tweak its policy to ensure that farmer are made shareholders in the sugarcane factories for profits,” he said.
“Farmers are already shareholding members of cooperative factories. But this does not happen in private companies. We need to change the law to see that farmers are treated as shareholders in private factories too,” he said.
He recognises the risks in such a situation. “Farmers are willing to share profits and losses of the factories, if they become shareholders. That is alright. Today, we have a situation where farmers do not get remunerative prices even if the factories make profits,” he added.
