Bangalore: The Karnataka government is caught in the crossfire between sugarcane growers and sugarmill owners, with the former demanding more remunerative prices and the owners unwilling to pay more.
The opposition has jumped into the fray taking up cudgels on behalf of sugarcane growers.
With the state legislature session being held in Suvarna Soudha, Belgaum, sugarcane farmers have been staging protest demanding more remunerative prices. One of the growers has committed suicide.
The state government raised the FRP (fair and remunerative price) of sugarcane by Rs 150 a tonne, adding it up to Rs 2,650 a tonne, but mill owners have said they won't pay more than Rs 2000 a tonne.
Karnataka is India's third largest sugar producing state after UP and Maharashtra, with Tamil Nadu in fourth position.
Though the Rangarajan committee has recommended decontrol of sugar sector, and the state government has scrapped 10 pc levy, the farmers want more for their produce.
Sugar prices have declined from Rs 3,400 a quintal last year to Rs 2,600 quintal now, and sugar factory owners are unwilling to pay more.
Sugarcane farmer leaders say, sugarcane is not only being used to make sugar, but also ethanol, bagasse, and for co-generation of electricity. They went the factories should pay them on time and abide by the prices fixed by the government.
For the moment, it appears to be a straight confrontation between the growers and the mill owners.