Payment of cane price to sugarcane growing farmers by the sugar mills is a continuous process: Centre

As per information received from State Governments, the amount of cane dues payable, cane dues paid and cane arrears against sugar mills state-wise during the last five sugar seasons (October – September) is at Annexure. The cane crushing in the current sugar season 2021-22 started late in some States due to the late retreat of the monsoon.

Payment of cane price to sugarcane growing farmers by the sugar mills is a continuous process. In sugar seasons 2016-17, 2017-18, 2018-19, 2019-20 & 2020-21, cane price payable to sugarcane farmers on all India basis was Rs55340cr, Rs83629cr, Rs86617cr,  Rs75907cr & Rs92881 cr respectively. As a result of various measures taken by the Government, the cane dues of farmers for sugar seasons 2016-17, 2017-18, 2018-19, 2019-20 & 2020-21 have been reduced to Rs.65cr, Rs185cr, Rs365cr, Rs130cr & Rs4445cr respectively, as on 06.12.2021.

There is no major delay in payment to sugarcane farmers and as mentioned above, the cane arrears are nominal & are declining.

However, with a view to facilitate prompt clearance of cane dues of farmers by sugar mills, the Central Government has been taking various interventions from time to time like promoting diversion of excess sugar to ethanol, providing assistance to sugar mills to offset the cost of cane, fixation of Minimum Selling Price of sugar, extending financial assistance to sugar mills for maintenance of buffer stocks, extending financial assistance to sugar mills to facilitate export of sugar, extending soft loans to sugar mills, etc.

As a result of these measures, more than 98% of sugarcane dues payable has been paid during last 5 years.