Karnataka Deputy Chief Minister DK Shivakumar has said there has been a breakthrough in the negotiations between sugarcane farmers and sugar mill owners in Belagavi, with both sides moving closer to a settlement on the price for sugarcane farmers. They came to an agreement after nearly 10 hours of talks and five rounds of meetings following the Centre's decision to set the minimum sale price of sugar minimum.
According to the statement issued after the talks on October 27, 2026, farmers and sugar mill representatives will be able to make their final decision within two days. The agreement framework will be aimed at both sugarcane growers and mill operators, but the final price to be paid to farmers has not yet been publicly disclosed.
Five Rounds of Talks Held in Belagavi
Shivakumar held meetings with sugar mill owners and farmer representatives at Suvarna Vidhana Soudha and the Circuit House in Belagavi. They started around 11 am and concluded around midnight.
The negotiations involved nine ministers and about 70 legislators, the statement said. Representatives from 79 of the 80 sugar factories were also present, along with farmer leaders who raised their demands and concerns.
Shivakumar said a framework was agreed on for how the amount sugar factories would pay farmers would be determined after the Central Government finalised the minimum sale price of sugar.
He said the factory owners had agreed to the proposed approach and that farmers had asked for two more days to discuss the terms among themselves before they were ready to announce their final position.
Sugarcane Price to Be Linked to Centre's Decision
The central issue in the dispute is the price sugar mills should pay farmers for sugarcane supplied during the crushing season. According to Shivakumar, the proposed resolution depends on the Centre's decision on the minimum sale price of sugar.
The minimum sale price of sugar is the regulated floor price at which sugar mills can sell sugar. It is different from the Fair and Remunerative Price (FRP), which is the minimum price mills are required to pay sugarcane farmers under the central pricing framework.
The final arrangement will therefore depend on the policy made and the terms of agreement between farmers and mill owners. No specific sugarcane price was announced in the statement.
Shivakumar said the state government would continue to support both sides and work with the Centre if necessary. He said protecting farmers and maintaining the continuing operation of sugar factories was crucial to resolving the conflict, and that farmers’ livelihoods were very important.
Farmers Seek More Time Before Final Decision
The farmers were then asked for two days to discuss the proposed arrangement before communicating their final decision. Mill owners have agreed to the structure that links the payment decision with the Centre's announcement, according to newspaper reports.
Shivakumar added that farmers had already spoken to a Union minister and had been assured by the Centre. The state government would be willing to continue talks with the central government for a long time to get the issues resolved, he said.
The Deputy Chief Minister also said the government would work with farmers and sugar mill owners. The outcome, however, will depend on the farmers’ reaction and the decision on the suitable price.
After 10 hours and five rounds of talks, sugarcane farmers and factory owners have moved closer to an agreement, with CM @DKShivakumar mediating the discussions. The final price will be linked to the Centre’s sugar MSP decision. Both sides will announce their final decision within two days. Dialogue brings progress. 🌾 https://t.co/Nsn7PzVgFe
— Gk (@Ggk_here_) October 27, 2026
Ministers, Legislators and Industry Representatives Attend
Several ministers, legislators, farmer leaders and sugar industry representatives were involved in the negotiations.
The ministers named were Satish Jarkiholi, Laxman Savadi and Santosh Lad, MLA N.H. Konareddy and the farmers Badagalapura Nagendra, Chunappa Poojari, Kuruburu Shanthakumar and Chukki Nanjundaswamy.
Sugar industry representatives named included Sangameshwar Nirani, Yogish Patil, Channaraj Hattiholi and Vivek Hebbar. Chief Minister's economic adviser L. Athique, Additional Chief Secretaries Tushar Girinath and other officials were also present, as was Deputy Commissioner Mohammed Roshan of Belagavi.
The meetings moved between Suvarna Vidhana Soudha and the Circuit House as discussions continued into the night.
What Happens Next?
The next step is for farmers and sugar mill owners to complete their internal consultations and announce a final decision within two days. In the long run, the central government's position on the minimum sale price of sugar will be a key factor in determining the payment framework.
Until the final announcement, the revised sugarcane price remains unconfirmed. The mediation of the state government has brought the parties closer to an understanding, but the practical impact on farmers will only be known once the final terms and payable rates are made public.
What will happen to sugarcane growers in Karnataka if the price settlement affects their earnings from the crop? For sugar mills, the arrangement will need to align payments to farmers with the economics of sugar production and sales.
The next few days will tell if the proposed framework can win the agreement from both parties and bring the dispute to a formal conclusion.
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