Farmers demand state-wide profit-sharing formula

Sugarcane farmers of Karnataka's Vijayapura district have demanded that the state government implement the profit-sharing formula, which was announced between factories and farmers by the Belagavi district administration, across the entire state. A delegation led by farmer leaders submitted a memorandum to the state government.

Farmers clarified that they will not allow sugarcane crushing operations to commence until the 10 sugar factories in Vijayapura district agree to accept a base price of ₹3,600 per tonne of sugarcane and promise to share profits if the sugar price exceeds ₹45 per kg. Under this formula, if sugar prices rise, farmers would receive 75% of the profit and the factory would receive the remaining 25%.

Assuming the current wholesale price remains between ₹45 to ₹55 per kg and if this price remains stable until the end of the crushing season, farmers could receive ₹4,000 to ₹4,400 per tonne of sugarcane. The delegation stated that this would assist farmers struggling due to the sharp increase in the costs of fertilizers, other inputs, and labor. This memorandum was signed by Arvind Kulkarni, Basavaraj Patil, Sangmesh Biradar, and other leaders.

The farmers' delegation met Deputy Commissioner K. Anand. He assured them of convening a meeting between the sugar factories and the farmers and stated that he would convey their concerns to the state government. Vijayapura MLA and sugar factory owner Basanagouda Patil Yatanale also supported this demand of the farmers.

Yatanale stated that after many decades, farmers are fighting for a purpose that benefits the entire industry, namely both farmers and factories. He added that until now, only factory owners were running to the central government to improve the Minimum Selling Price (MSP) of sugar. Farmers have now understood that only by increasing the MSP can factories pay higher prices for sugarcane, and the farmers' expectation to receive a share in the factories' profits is fair. He further added that if the state government announces that factories should share profits with farmers, his factory will be the first profit-sharing factory.

On the other hand, sugarcane producers in Bagalkot district have also started protest demonstrations at several locations. They are not ready to accept the ₹3,600 proposal because subsequent payments based on profit are subject to speculation. A team of leaders, including Irappa Hanchinal, met Deputy Commissioner Sangappa and requested him to ask the factories to pay ₹4,250 per tonne of sugarcane.

Irappa Hanchinal alleged that factory owners have formed a group and are cheating the farmers. He further added that factory owners are working in collusion with politicians who exploit the helplessness of farmers. Farmers have now understood their cunningness and will not allow any factory to begin crushing operations or the sale of sugar. They are also demanding that the state government ensure the payment of all outstanding dues to the farmers. On Monday, farmers also held a road blockade protest at Sangoli Rayanna Circle and demanded higher purchase prices. They threatened to intensify this movement if their demands are not met.