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Karnataka HC Refuses to Stop Higher Sugarcane Price — Sugar Mills Face Setback

By Sugar Times Team

10 December 2025

Karnataka HC Refuses to Stop Higher Sugarcane Price — Sugar Mills Face Setback

The Karnataka High Court has refused to pause the state government’s decision to increase the price paid to sugarcane farmers for the 2025–26 season. This higher rate is above the Fair and Remunerative Price (FRP) fixed by the central government.

Why Sugar Mills Went to Court

The South Indian Sugar Mills Association (Karnataka) and other mill owners argued that:

  • The sugar industry is currently struggling.

  • Mills are finding it difficult to pay even the FRP on time.

  • The state government did not follow proper legal procedures before announcing the higher price.

They requested the court to cancel the November 8 government notification and to stop its implementation.

What the Court Said

Justice Suraj Govindraj refused to grant a temporary stay.
He said the court would hear the government and farmers first before giving any relief.

The judge also pointed out that:

  • Sugar mills earn good money not just from sugar but also from ethanol.

  • Mills supply ethanol to other industries and benefit financially.

  • Yet they hesitate to share this profit with sugarcane farmers.

The matter will now be heard again on December 17.

Background

Last month, Chief Minister Siddaramaiah announced that sugar factories and the state government would each contribute ₹50 per tonne extra to the sugarcane price, giving farmers a higher payment.

Karnataka has 81 sugar mills

  • 1 government-run,

  • 11 cooperative mills, and

  • The rest privately owned.

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Sugar Times Team

http://sugartimes.co.in

Published: 10 December 2025

Covering India's sugar & bio-energy industry — market news, policy updates, and agricultural intelligence for the industry.

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