Karnataka CM Siddaramaiah meets PM, insists on sugarcane price, AIIMS

The CM sought a revision of the frozen ₹31 per kg sugar MSP, assured ethanol offtake from Karnataka distilleries, and a central notification allowing states to fix harvesting and transport costs

Karnataka Chief Minister Siddaramaiah met Prime Minister Narendra Modi and insisted on demands pertaining to the state, including on Fair Recovery Price of sugarcane, AIIMS for Raichur, the release of flood relief among others.

His demand on sugarcane price came in the wake of farmers' protest in the north Karnataka demanding an increase in the cane procurement price.

The chief minister highlighted several long-standing demands of the state, including the release of over Rs 2,100 crore in flood relief, and the clearance of crucial irrigation projects in his memorandum to Modi.

"The meeting, which comes amid ongoing state concerns over central fiscal devolution and disaster funding, covered five critical areas outlined in the document submitted to the PM," a statement issued by the chief minister's office said on Monday.

In his memorandum to the prime minister, Siddaramaiah sought a sustainable solution to the sugarcane pricing crisis.

"Following recent farmer agitations, the state government informed the PM that it had brokered a solution by mandating an additional payment of Rs 100 per tonne of sugarcane, with the state bearing half the cost (Rs 50)," the statement said.

The memorandum stressed that this is a temporary fix and placed the onus for a permanent solution on the Centre, it said.

The chief minister made three key requests -- an immediate revision of the 'frozen' Minimum Support Price (MSP) for sugar, currently at Rs 31 per kg; an assured offtake of ethanol from Karnataka's distilleries; and a central notification empowering states to fix harvesting and transport costs.

The chief minister demanded setting up an All India Institute of Medical Sciences (AIIMS) in Raichur, describing it as having 'sub-par' health and education indicators and a high populace of SC/ST and backward classes, hence in need of a high-quality Referral Medical Centre.

Siddaramaiah told Modi that the state has already submitted a detailed project report, identified land, and established a government medical college in Raichur to create a basic ecosystem for the national institute.

Regarding Jal Jeevan Mission, the CM said, "A significant point of discussion was the alleged financial shortfall in the Centre's share for the Jal Jeevan Mission (JJM). The state claimed that while it has achieved over 86 per cent functional household tap connections, the central government has a cumulative short release of Rs 13,004.63 crore up to 2025-26."  The memorandum stated that for 2025-26, no central funds have been released, while Karnataka has already advanced Rs 1,500 crore from its own budget to prevent work stoppages. Bills worth Rs 1,700 crore are pending, with another Rs 2,600 crore in the pipeline, prompting an urgent request for the release of balance funds, the statement said.

Siddaramaiah also sought the prime minister's intervention to break the logjam on several irrigation and drinking water projects.

Regarding the Mekedatu Balancing Reservoir on Cauvery, Siddaramaiah urged the Centre to direct the Central Water Commission (CWC) for expeditious clearance of the balancing reservoir project on the Cauvery.

On Krishna Tribunal, the CM told the prime minister the gazette notification of the Krishna Water Dispute Tribunal-II (KWDT-II) award is pending for over a decade.

About Upper Bhadra dam project, Siddaramaiah sought the release of the central assistance of Rs 5,300 crore announced in the 2023-24 Union Budget.

The chief minister also asked for forest and wildlife clearances for Kalasa Banduri project from the Environment Ministry for these drinking water projects for the Hubballi-Dharwad region.

Along with that, Siddaramaiah explained to Modi about the severe natural calamity from unprecedented rains and riverine floods this year.

He told the PM that the state has submitted two memoranda seeking assistance from the National Disaster Response Fund (NDRF). The floods damaged crops across 14.5 lakh hectares, affecting 19 lakh farmers, and destroyed thousands of houses, roads, and schools.

In this connection, Siddaramaiah requested assistance of Rs 614.9 crore under 'Rescue and Relief' to cover the shortfall in crop input subsidies and Rs 1,521.67 crore under 'Recovery and Reconstruction' for restoring damaged public infrastructure.

"The state government expressed hope for a positive consideration of its demands to address both immediate crises and long-term developmental needs," the statement said.