Overview
- After nearly ten hours of talks in Belagavi on Monday, Chief Minister D.K. Shivakumar secured an in‑principle understanding between farmers and 79 of 80 sugar mills to link what factories pay growers to the Centre’s minimum selling price for sugar.
- Both farmer leaders and mill owners agreed to take the proposal back to their members and aim for a final decision within about 48 hours, giving growers time to consider the formula discussed at the marathon meetings.
- Karnataka will wait for a Central committee visit led by Ramesh Chand, scheduled for October 29, whose findings and any change in the Union MSP are now the decisive conditions for a binding settlement.
- State officials warned they cannot unilaterally meet large price demands because the government already carries heavy farm subsidies and past State Advised Price moves saw about 80% factory compliance but some legal challenges.
- If finalised, the arrangement would protect crushing this season by avoiding a wider blockade, but it also ties growers’ pay to national sugar policy and could prompt pressure on the Centre to raise MSP and clarify ethanol and power‑sale rules that affect mill revenues.