Sugar factories too have grievances, says Karnataka PWD Minister Satish Jarkiholi

Satish Jarkiholi, the Minister for Public Works Department in Karnataka, has brought attention to the financial distress currently facing the state's sugar industry. Speaking on the matter, he emphasized that sugar factories are not the sole entities with grievances but are struggling under the weight of existing economic pressures. His comments suggest a broader acknowledgment within the state government that the sector requires immediate policy attention to remain viable and continue contributing to the local economy.

A central point of contention raised by the minister is the current Minimum Support Price (MSP) structure. Jarkiholi argued that the existing MSP levels are insufficient to cover the rising costs of production, which include raw materials, labor, and operational expenses. He called for a revision of these prices to ensure that factories can sustain their operations without incurring heavy losses. This demand aligns with long-standing calls from industry bodies who have consistently argued that the current price floor does not reflect the true cost of sugarcane cultivation and processing in the region.

In addition to pricing issues, the minister pointed to the accumulation of pending power bills as a major hurdle for sugar factories. Many of these facilities operate on a seasonal basis, leading to significant energy costs that are often difficult to manage within short operational windows. The backlog of unpaid electricity bills has created a financial strain that further erodes their profitability. By highlighting these specific grievances, Jarkiholi aims to frame the sugar sector's challenges as systemic issues that require coordinated government intervention to resolve.