Sugar Mills Told to Pay off their Arrears
New Delhi: The food ministry has asked sugar mills to pay off sugar arrears for the sugar year 2015-16 and also clear the dues for 2016-17 as soon as possible.
A senior official in the ministry said that they have also asked the millers to keep releasing the sugar stocks periodically and not hoard. It has also urged them to not increase the price as well for consumers, he said.
In regards to Fair and Remunerative Price (FRP) set by the centre, the total sugarcane arrears to be paid by mills to farmers for the 2015-16 season ending September 2016 is .₹ 334 crore while under the State Advised Price (SAP), which state governments set to protect interest of farmers, it is close to .₹ 1,206 crore, said the food ministry official. Most of the arrears were held by Tamil Nadu and Uttar Pradesh millers.
Further, till February 20, the total FRP dues for the current season beginning October’ 2016 was .₹ 6,054 crore owed by the sugar millers to farmers. The total SAP dues stands at .₹ 9,764 crore. In this regard, Preeti Sudan, secretary, Department of Food and Public Distribution held a meeting with industry representatives and officials from ISMA on Tuesday.