Centre Considers sugar MSP Hike: karnataka chief minister Siddaramaiah claimed credit for the central government’s decision to consider the sugar industry’s demand for a hike in the minimum selling price (MSP) of sugar.

Meeting with PM Modi: Siddaramaiah highlighted that this consideration followed his meeting with prime minister Narendra Modi, during which he raised the issue.

Government Statements and industry Demands

Union Minister’s Statement: Union Food and Consumer Affairs minister Pralhad Joshi stated that the Centre has allowed exports of 15 lakh tonnes of sugar for the 2025-26 marketing year starting October.

MSP Consideration: Joshi mentioned that the government will consider increasing the MSP from Rs 31 per kg (unchanged since february 2019) to Rs 40 per kg, in line with industry demands.

Industry Request: The indian sugar Mills Association (ISMA) had requested an increase to Rs 40 per kg, citing rising production costs.

CM’s and Deputy CM’s Comments

Siddaramaiah’s Statement: The CM said he had requested Rs 41 per kg during his discussions with PM Modi, and that the Centre has now agreed to consider an increase.

Deputy cm D K Shivakumar: He noted that sugar factories had requested an increase in prices after seven to eight years of stagnation. He emphadata-sized that both farmers and factories should benefit simultaneously.

Farmer Protests and State Intervention

Protests: Karnataka witnessed intense sugarcane farmer protests due to the pricing gap between MSP and production costs.

State Measures:After consultations with farmers and mill owners, the state government issued a government order (GO) providing an additional Rs 100 per tonne to farmers, split equally between the state and mills.

Net Cane Price: This ensured a net sugarcane price of Rs 3,200–3,300 per tonne, depending on recovery.

Other Demands Raised

Additional Requests: CM Siddaramaiah urged the prime minister to revise MSPs to ensure mills could pay farmers fairly, secure assured ethanol offtake for karnataka distilleries, and issue a Central harvesting and transport (H&T) cost notification to ensure transparent, farmer-friendly pricing.

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