New Delhi: Cane farmers have received payments amounting to nearly Rs.1.04 trillion from sugar mills during the current marketing year, which concludes on 30 September. However, there are still unpaid dues worth Rs.9,499 crore, according to the government's latest report.
Among the states, Uttar Pradesh's millers are required to clear the highest amount of dues, which stands at Rs.6,315 crore. Meanwhile, cane arrears in Gujarat and Maharashtra are at Rs.1,651 crore and Rs.631 crore, respectively.
In a written response to the Rajya Sabha, Sadhvi Niranjan Jyoti, the Minister of State for Consumer Affairs, Food, and Public Distribution, stated that the payment of cane dues to farmers is an ongoing process. Fortunately, the outstanding arrears have shown a declining trend over the past five years.
To ensure the timely settlement of pending dues to sugarcane farmers, the central government has implemented various policy measures. One of these measures is the government-mandated Fair and Remunerative Price (FRP) of sugarcane, which takes into account the factors mentioned in Clause 3(1) of the Sugarcane (Control) Order, 1966.
Moreover, the minimum selling price of sugar has been set to prevent any significant drop in ex-mill prices, facilitating the clearing of accumulated cane arrears. Initially set at Rs.29 per kg, this price was later revised to Rs.31.
Over the past seven years, from the sugar season 2014-15 to 2020-21, the government has extended financial assistance amounting to over Rs.18,000 crore to sugar mills. This financial aid has played a crucial role in ensuring the timely clearance of farmers' dues.
To improve the financial conditions of sugar mills, surplus sugar has been diverted for ethanol production, enabling them to clear their dues owed to cane farmers at an earlier stage.
The minister highlighted that an impressive 99.9% of cane dues up to the sugar season 2020-21 have been successfully cleared. For the previous sugar season 2021-22, more than 99.9% of cane dues have also been cleared, while the current sugar season 2022-23 has seen approximately 91.6% of cane dues cleared as of July 17, 2023.
As per the latest data, the total amount payable as of July 17 is Rs.1.13 trillion, out of which Rs.1.03 trillion has already been paid, leaving Rs.9,499 crore to be cleared.
