Karnataka Sugarcane Farmers Urge Committee to Adopt Ex-Field Pricing for FRP

A section of Karnataka sugarcane farmers met with the Prof Ramesh Chand Committee in Bengaluru to press for structural changes in cane pricing and the adoption of an ex-field pricing mechanism for the Fair and Remunerative Price (FRP).

The delegation submitted a detailed memorandum to Prof Ramesh Chand, former NITI Aayog member, who is heading a specially constituted committee to examine issues raised by sugarcane growers following recent farmer agitations in North Karnataka. The committee is tasked with reviewing current pricing structures and recommending appropriate measures.

During the consultations, farmer leaders argued that growers should receive the full government-announced FRP at their farm gate without any deductions made by factories toward harvesting and transportation costs. Kurbur Shantkumar, State President of the Indian Sugarcane Farmers Association, noted that substantial deductions significantly lower the actual payouts received by producers.

Farmers are demanding an increase in the FRP to a minimum of ₹4,500 to ₹5,500 per tonne, alongside a hike in the minimum selling price of sugar to ₹60 per kg from the current ₹31 per kg. For the 2026-27 season starting in October, the Centre has fixed the FRP at ₹3,650 per tonne.

Growers highlighted rising agricultural production costs encompassing seeds, fertilizers, farm wages, irrigation, electricity, diesel, harvesting, and transportation. Citing a report by the Sugarcane Development Commissioner of Karnataka, which estimated the cost of producing one tonne of sugarcane at ₹4,450 last year, farmers argued that the current FRP does not reflect operational expenses.

Beyond the primary pricing demands, the memorandum called for a profit-sharing mechanism that accounts for additional revenues earned by sugar mills from by-products such as molasses, bagasse, ethanol, and co-generated power. Referencing the Sugarcane (Control) Order, 1966, farmers urged that these earnings be factored into grower payouts.

Additional grievances included the method of calculating sugar recovery. Farmers demanded that sugar recovery be scientifically assessed for each individual field rather than averaged across total cane supplied by all growers, which they argue disadvantages those producing higher-quality sugarcane. They also called for an end to the practice of deducting 8 to 10 percent of cane weight as wastage during mechanical harvesting in the absence of scientific standards.

"The demands raised by sugarcane farmers highlight the ongoing economic pressures within the agricultural sector, particularly regarding production costs versus statutory pricing. Implementing an ex-field pricing model and addressing deductions for harvesting and transportation would directly impact the operational margins of both growers and sugar mills. For sustainable agribusiness ecosystems, policy frameworks must balance fair grower remuneration with the financial viability of processing units while fairly accounting for revenue generated from valuable by-products like ethanol and power." — Dr. Shishir Gupta, Founder & CEO, StartupLanes