Sugar Mills' cane arrears dip 13%

NEW DELHI: Sugar mills’ cane arrears for the 2017-18 season stand at Rs 7,826 crore, down 13% from a year ago, according to the food ministry. “As on date, cane price arrears in the current season on SAP (state-advised price) basis are at Rs 7,826 crore in comparison with Rs 8,982 crore in the corresponding period of the last sugar season,” the ministry said in a statement on Thursday.

SAP is fixed by state governments to protect the interest of farmers and is usually higher than the fair and remunerative price (FRP) set by the central government.

Despite higher production and lower sugar prices in the current season, cane price arrears are relatively lower than the previous season’s as a consequence of measures taken by the central and state governments, the ministry said.


The government also said that of Rs 57,608 crore that mills collectively owe to farmers for the 2016-17 season, only payment of Rs 52 crore (on FRP basis) and Rs 1,076 crore (on SAP basis) remains to be cleared.

According to the statement, some mills are yet to clear cane dues for the 2015-16 sugar season—this includes Rs 122 crore on FRP basis and Rs 710 crore on SAP basis—while there are others that are still clearing dues from earlier year.