According to the ISMA, as on 28th February, 2021, total cane dues of about Rs. 22,900 Crore are pending for the cane procured in the current season. It is higher as compared to arrears one year back when it was around Rs. 19,200 Crore. The prevailing low ex- mill sugar prices for last several months, has adversely affected the liquidity of mills and their ability to pay the FRP to cane farmers.
The mills are hoping that the government would increase the minimum selling price (MSP) to help mills increase revenue and clear the cane dues to the farmers. ISMA issued a statement stating that if the situation persists, the cane arrears would jump to alarming levels.
The sugar mills have produced 27.75 million tonnes of sugar till March in the ongoing crushing season which is higher than 23.31 million tonnes last year.
As per ISMA, 503 sugar mills were crushing sugarcane during 2020-21 SS as compared to 457 mills, which operated last year. As on date, 282 mills have stopped crushing this year. As compared to 221 mills operating as on 31st March, 2021 this year, 186 mills were operating on corresponding date last year.
277.57 lakh tonnes of sugar have been produced till 31st March 2021 as against 233.14 lac tons produced last year by 31st March 2020, i.e. higher by about 44.43 lac tons.