More than 91.6 % cane dues cleared in ongoing sugar season; 99.9% dues cleared in previous season

With a view to facilitate payments of outstanding dues to the sugarcane farmers, the Central Government has taken various steps in the form of policy interventions from time to time as and when required, which are as under:

1. Central Government fixes Fair and Remunerative Price (FRP) of sugarcane having regard to the factors mentioned in Clause 3(1) of the Sugarcane (Control) Order, 1966.
2. Minimum Selling Price of sugar was fixed to prevent fall in ex-mill prices of sugar & accumulation of cane arrears (initially at ₹ 29/ kg w.e.f 07-06-2018; revised to ₹ 31/kg w.e.f. 14-02-2019).
3. Financial assistance of more than ₹ 18,000 crore extended to mills resulting in clearance of farmers’ dues during 7 years i.e. sugar season 2014-15 to 2020-21.
4. Diversion of surplus sugar to production of ethanol led to improved financial conditions of sugar mills. As a result, they are able to clear cane dues early.

As a result of these measures, about 99.9% of cane dues up to sugar seasons 2020-21 have been cleared. For the previous sugar season 2021-22, more than 99.9% cane dues have been cleared and in the current Sugar Season 2022-23, about 91.6 % cane dues are cleared as on17.07.2023.

As per information received from State Governments, total overdue payment to sugarcane farmers by sugar mills during the last five years including current year, year-wise and state-wise is given at Annexure.

Payment of cane dues to farmers is a continuous process and from the Annexure it may be seen that the outstanding cane arrears are decreasing continuously during last five years.

The powers have been delegated and vested with the State Governments/UTs for monitoring the cane price payment position of sugar factories on periodical basis and in case of delay in payments, suitable action is taken by them.