Karnataka cane prices remain at the center of a dispute between sugar mills and growers, with DK Shivakumar urging factory owners to discuss farmers’ demands and seek a mutually acceptable solution.

Key Takeaways

  • Farmers are seeking a cane price of up to Rs 6,000 per tonne.
  • Shivakumar said he had sought time to consult stakeholders before a final decision.

Karnataka cane prices under dispute

Speaking to sugar mill owners in Belagavi on October 26, 2026, Shivakumar said farmers had taken to the streets because their concerns had not been addressed. He asked mills to consider their demands even if doing so involved a limited financial burden.

He said responsibility for finding a solution rested with the mills, the state government and India’s central government. Similar demands were being raised by farmers in Maharashtra, Andhra Pradesh, Telangana, Bihar and Uttar Pradesh, he added.

Cost pressures on growers and mills

Shivakumar said the Siddaramaiah government had decided that the state and mills would share the financial burden of cane price support. Around 80% of factories had complied, he said, while some had challenged the decision in court.

He said sugar prices had remained largely unchanged for a decade while cultivation costs had risen. He also acknowledged financial and banking constraints facing mills, as well as concerns over ethanol and power tariffs.

Shivakumar said lower rainfall had increased agricultural power consumption and affected sugarcane yields, contributing to a decline in sugar production.

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