Sugar mills pay 92% dues to cane farmers; owe R4,225 crore

New Delhi, June 29: Sugar mills have paid R 48,675 cr ore to sugarcane farmers and owe about R4,225 crore for the current marketing year ending September, the government on Wednesday said.

Of the total cane arrears, the maximum amount pertainar Pradesh at R 1,975 crore. The cane price payable and arrears have been calculated on the basis off air and remunerative price (FRP), which is the minimum price, fixed by the Centre, to be paid to farmers. For the 2015-16 marketing year, FR P for sugarcane has been fixed at R 230 per quintal. “During the current sugar season 2015 -16, about 230 million tonne (mt) of sugarcane was procured from the farmers by the sugar mills across the country.

“Out of the total cane price dues payable of R52,900 crore, on the basis of the fair and remunerative price (FRP), only R4,225 crore are pending as cane price arrears for current sugar season,” the food ministry said in a statement.

Sugar mills have paid about 92% of their cane dues so far, it added. “Out of the total pending cane price arrears for current sugar season, about R1,975 crore pertains to Uttar Pradesh, which is about 14% of its dues payable,” the statement said, adding that a major portion of the pending arrears about R1,600 crore belongs to five sugar group companies namely, Bajaj, Mawana, Modi, Simbhaoli and Rana.

Maharashtra, being the major sugar-producing state, has cleared almost 96% of cane dues payable and only R590 crore are pending as arrears. Another major sugar producing state Karnataka has paid 94% dues to farmers.

During the 2014-15 sugar season, the cane price arrears had peaked at R21,800 crore in April last year and this has now come down to just R684 crore. “The central government has been consistently monitoring the position of cane price arrears and advising the state governments for speedy liquidation of arrears,” the ministry said.

The sugar production of India, the world’ s second largest producer after Brazil, is estimated to decline to 25 million tonne (mt) in the 2015-16 marketing year, as against 28.3 mt in the previous year. The annual domestic demand is pegged at 26 mt.

For the next 2016- 17 marketing year, the government has forecast further decline in output at 23-24 mt, although it has maintained that there would be no shortage.

Maharashtra has cleared almost 96% of cane dues payable and only R590 crore is pending as arrears