Mills facing financial crisis due to decline in sugar sales

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New Delhi: The lockdown imposed to prevent the spread of coronavirus pandemic has increased the woes of sugarcane cultivators as they are yet to receive sugarcane. The sugar mills, on the other hand, are facing the financial scarcity as the sugar sale has gone down due to lockdown.

Mills are unable to sell the sugar amid lockdown, due to which sugar stocks are piling up in warehouses. According to the Indian Sugar Mills Association (ISMA), as compared to last year’s sugar sales in the first 5 months of the season, the sugar despatches from sugar mills this year was higher by 10.24 lakh tonnes till Feb, 2020. Due to lockdown, the sugar sales in March and April, 2020, was lower than what was sold last year, by about 10 lakh tonnes, bringing us back to same levels as last year.

Due to low sales, mills are under deep financial crisis and are unable to pay cane dues.

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