Farmers demanding more price for sugar cane; Factory owners denied

Haveri: With the upcoming sugarcane harvesting season, the ongoing price dispute between sugar factory owners and sugarcane growers in the district has escalated. The sugarcane price-setting meeting, conducted at the sugar factory premises and the DC s office, failed to reach an agreement, leaving the final rate of compensation in question.

In a lengthy price-setting meeting on October 19th at the sugar factory, there was a fierce battle over pricing between sugarcane growers and factory owners. However, as neither party yielded, the sugarcane growers had no choice but to schedule a meeting with the DC.

During the meeting, officials representing the factory, management board members, and grower organization leaders effectively presented their price demands. Ultimately, after listening to both sides' arguments, the DC stated that the government has already fixed the Fair and Remunerative Price (FRP) rate, which the factory is obligated to pay. He suggested that if the growers have a demand for more than the FRP, they should engage in discussions themselves to determine the price.

There is a possibility that Mylara and Shiggavi sugar mills may benefit from this price standoff between sugarcane growers and factory owners.

According to sugarcane growers, the factory has been in operation for nearly 40 years. When the management board managed the factory for 24 years, the sugarcane recovery rate was above 10.50 per ton. However, GM Sugars has been operating the factory for 16 years, and the sugarcane recovery has declined from 9.5 to 9.95. This price difference is seen as unfair by the growers, who demand Rs. 2,600 if their sugarcane is taken directly from the field (Field Cane) and Rs. 3,600 if it's delivered to the factory.

Sugarcane growers did not agree to the factory owners' offer and demanded more than rs 2923 FRP, which was fixed by the government. The factory owners agreed to add rs 50 per tonne , bringing the total to Rs. 2,973, stating that no higher rate was feasible. They asserted that there was no unfairness in sugarcane recovery and explained the financial difficulties they faced.

Currently, three factories in the district are preparing for sugarcane crushing. Hebbara's factory in Shiggavi has set a price of Rs. 3,070, and Haveri GM Sugars has fixed it at Rs. 2,973. The Tumminakatti factory has commenced sugarcane crushing without yet determining a price. The neighboring Bellary district's Mylar Sugars has set a price of Rs. 3,015. According to reliable sources, factory owners are likely to pay between Rs. 2,973 and Rs. 3,000, while sugarcane growers are expected to receive between Rs. 3,200 and Rs. 3,300. It is likely that both sides will reach a consensus, settling on a price of Rs. 3,050 per ton in time for the sugarcane crushing puja on the 25th.

The meeting heard arguments from both parties, with the factory owners emphasizing the government-fixed FRP rate of Rs. 2,923, and growers seeking a price of up to Rs. 3,200 per ton. DC Raghunandana Murthy assured that there would be no injustice towards sugarcane growers for any reason, and he would monitor sugarcane recovery and weight differences.

Rajasekhara Betageri, President of Haveri District Sugarcane Growers Association, emphasized that they could not compromise on the price, with field cane set at Rs. 2,600 and gate cane at Rs. 3,300. He stated that they would be content with a price of up to Rs. 3,200 per ton, exceeding the government-fixed FRP rate. The sugarcane price dispute remains a key issue in the district, with both factory owners and sugarcane growers standing firm in their positions. The resolution of this matter will significantly impact the upcoming sugarcane harvesting season.