High Court refuses interim stay on sugarcane price order

The Karnataka High Court has declined to grant an interim stay on the State government’s order fixing the sugarcane procurement price, even as several sugar mills challenged the decision through writ petitions. A single-judge bench, while hearing the matter, stated that an interim order was not feasible at this stage and issued notices to the State government. The case will next be heard on December 17.

The State government had fixed Rs 3,250 per metric tonne as the procurement price for sugarcane. Sugar factories argued that when harvesting, loading and transportation costs are included, the total expense reaches Rs 4,150 per tonne, leaving them with heavy losses. They accused the government of issuing a “one-sided order” without following due legal process.

Petitions were filed by Renuka Sugars, Nirani Sugars, Gem Sugars, KPR Sugars, and Godavari Bio-Refineries. Senior advocate H.N. Shashidhar appeared for the South India Sugar Mills Association (SISMA).

During the hearing, Justice Suraj Govindaraj, heading the bench, made sharp observations about the mills’ stand. “You must understand that without farmers, none of you exist. You earn from ethanol and several other by-products, yet you hesitate to pay farmers,” the bench remarked, questioning the reluctance of mills to pay even the minimum assured price.

The dispute comes at a time when farmers across Karnataka had taken to the streets demanding a fair support price for sugarcane. Their protests intensified in several districts, forcing the government to intervene and convene a high-level meeting.

While farmers demanded Rs 3,500 per tonne, the government eventually fixed the price at Rs 3,300 per tonne, including an additional Rs 100 as shared support — Rs 50 from the State and Rs 50 from factories.

Chief Minister Siddaramaiah had recently reiterated that Rs 3,200 plus Rs 100 was a balanced solution that protected both farmers and mills.

The High Court will examine the State’s justification and the mills’ financial concerns in the next hearing.