Sugar mills yet to clear 17,134 crores in current crushing season

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New Delhi: As the 2019-20 sugarcane crushing season nearing end amid lockdown, the pending cane arrears continue to mount to Rs 17,134 crore.

As per PTI, according to the Union Food Ministry, till May 28, the mills have paid farmers cane bills around Rs 47,217 crore out of Rs 64,261 crore. They are yet to clear arrears worth Rs 17,134 crores so far.

Coronavirus has impacted the sugar industry in India. And sugar mills are finding it difficult to sustain as sugar sales are down, which has created liquidity problem for the mills. The demand for sugar has been reduced as the industries like cold drinks, ice cream, bakeries and sweet shops are shut due to lockdown. As sales are down, sugar stocks are piling up in warehouses. And also they are unable to clear cane payment due to financial scarcity.

The State-level and national-level organisations associated with sugar industry have written to the state government as well as centre to provide financial assistance to the ailing sugar sector.

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