Mills owe Rs 2,591 cr sugarcane arrears to farmers: K V Thomas
The sugar industry owes Rs 2,591 crore in arrears to sugarcane farmers till May 15 of the current 2010-11 season Sep-Oct: Thomas
By PTI | Updated:
NEW DELHI: The sugar industry owes Rs 2,591 crore in arrears to sugarcane farmers till May 15 of the current 2010-11 season (September-October), Food Minister K V Thomas said.
"As on May 15, an amount of Rs 2,591.79 crore, which is only 6.25 per cent of the total cane price payable for the 2010-11 season is still pending for payment," Thomas said in a written reply to the Lok Sabha today.
In addition, a sum of Rs 211.22 core is pending for payment for previous seasons, he said.
The minister said cane arrears build up mainly when there is excess sugar production in a season leading to decline in sugar prices, which adversely affects the capacity of the sugar mills to make payments including cane arrears to sugarcane farmers.
The State Advised Prices (SAP) which is generally higher than the Fair and Remunerative Price is another reason for building up of cane arrears, he said.
In order to augment the liquidity of the sugar mills, Thomas said the government allowed a total export of 2.1 million tonnes, which includes 1.1 million tonnes of sugar export under the Advance Authorisation Scheme.
Sugar exports have been allowed in view of higher domestic production. The country's sugar production is estimated to be higher at 24.2 million tonnes in the 2010-11 season, as against around 19 million tonnes last year.
The domestic demand is pegged at 21-21.5 million tonnes. Thomas said the sugarcane crushing has been completed in most parts of the country except for 20 mills in Tamil Nadu and one mill in Puducherry.
"As on May 15, an amount of Rs 2,591.79 crore, which is only 6.25 per cent of the total cane price payable for the 2010-11 season is still pending for payment," Thomas said in a written reply to the Lok Sabha today.
In addition, a sum of Rs 211.22 core is pending for payment for previous seasons, he said.
The minister said cane arrears build up mainly when there is excess sugar production in a season leading to decline in sugar prices, which adversely affects the capacity of the sugar mills to make payments including cane arrears to sugarcane farmers.
The State Advised Prices (SAP) which is generally higher than the Fair and Remunerative Price is another reason for building up of cane arrears, he said.
In order to augment the liquidity of the sugar mills, Thomas said the government allowed a total export of 2.1 million tonnes, which includes 1.1 million tonnes of sugar export under the Advance Authorisation Scheme.
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Sugar exports have been allowed in view of higher domestic production. The country's sugar production is estimated to be higher at 24.2 million tonnes in the 2010-11 season, as against around 19 million tonnes last year.
The domestic demand is pegged at 21-21.5 million tonnes. Thomas said the sugarcane crushing has been completed in most parts of the country except for 20 mills in Tamil Nadu and one mill in Puducherry.
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