SUGAR MILLS OWE RS 13,899 CR TO CANE-GROWERS

SUGAR MILLS OWE RS 13,899 CR TO CANE-GROWERS

Sugar mills across the country owe Rs 13,899 crore to cane-growers as on March 21 during the current marketing year ending September. Mills in UP have the maximum cane arrears of Rs 5,136 crore, followed by Karnataka — Rs 2,539 crore and Maharasthra — Rs 2,348 crore. “As on March 21, out of total cane dues payment of Rs 55,553 crore for 2017-18 season, an amount of Rs 41,654 crore has been cleared and Rs 13,899 crore is pending,” Minister of State for Food CR Chaudhary said in a reply to the Lok Sabha. Liquidity position of mills has been affected due to downward trend in sugar prices in view of higher production in the 2017-18 marketing year (Oct-Sept). This has resulted in delay in cane payment to growers. “The mill owners are finding it difficult to pay the cane prices to the farmers on time due to decrease in sugar price,” he said in a separate reply. The Maharashtra government has issued notice to 228 sugar mills for recovery of cane payment dues to farmers, he added.

To stabilise domestic prices, Chaudhary said the government had doubled import duty on sugar to 100%, scrapped the export duty and also imposed stock limits on sugar mills for two months. Sugar output is estimated to rise to 27.2 million tonnes in 2017-18 marketing year, as against the demand of 25 million tonnes. India had produced 20.3 million tonnes in the 2016-17 marketing year.

Source: Daily Pioneer – Published on: 27th Mar 2018