Sugar mills owe Rs 2,400 crore arrears of last two seasons to sugarcane farmers


New Delhi: Yet sugarcane arrears of past two seasons have not been paid. According to the reports, a senior Food Ministry official stated that the sugar mills are yet clear arrears around Rs 2400 crore from last two seasons to the cane growers. Excess sugar production and falling sugar prices in the market during 2017-18 and 2018-19 seasons affected the millers’ capacity to clear dues of cane farmers. Till last month, mills have cleared about Rs 84,700 crore dues of the 2018-19 sugar season (October-September) and Rs 84,900 crore arrear of 2017-18.

Out of total pending dues of past two seasons, Rs 2300 crore is of 2018-19 season and Rs 100 crore for the season 2017-18. While as per reports millers are trying their best to pay the pending dues.

As sugar mills are suffering from financial scarcity, Central government introduced various measures for them to bring out of this grim situation. Recently, with an aim to reduce the sugar surplus and low down cane arrears, the government has approved the sugar export subsidy.

As per the sugarcane (control) act, the sugar mills should clear dues of farmers within 14 days of supply of cane and in case of delay will have to pay 15 per cent on the pending dues.

Sugarcane farmers across the country claim that their financial condition is worsening as yet they have not received the dues. Farmers say that they are unable to feed their families, nor able to pay school fees of their children.

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