WATCH : Karnataka's sugarcane crisis explained

WATCH : Karnataka's sugarcane crisis explained

The sugarcane crisis seems to have touched boiling point in Karnataka. A mix of unsold inventory and overdue payments have forced farmers to launch a stir, reaching as far as Bengaluru and planning to lay siege to the Vidhana Soudha. The problem has been compounded by some controversial statements by Chief Minister H D Kumaraswamy.

But what is the problem? Deccan Herald explains.

  • The government owes farmers over 1,500 crores in dues for FY17-18. Of this, Vijayapura, Belagavi and Bagalkot alone account for over a third of the dues.
  • Sugar import, combined with a huge stock of unsold inventory in sugar factories, led to prices falling as low as Rs 30 per kg.
  • India produced 32 million tonnes of sugar between October 2017 and April 2018, over seven million tonnes more than the country's consumption.
  • Despite a recent ban on sugar imports to help farmers, the situation has not changed much as a significant stock of the product remains unsold, leading to mounting dues to farmers.
  • Despite the massive unsold stock, sugarcane growth in Karnataka has dropped significantly as a result of the unhealthy use of fertilisers and ratoon cropping.
  • Sugarcane farmers are demanding Rs 3000 per tonne as minimum support price for their crops, Rs 500 more than the price set by the previous Congress government in the state.

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