Sugar mills owe Rs 10,541 crore to cane farmers as on July 15

NEW DELHI: Sugar industry owes Rs 10,541 crore as arrears to sugarcane farmers as on July 15 mainly due to low realisation from sale of sweetener, Parliament was informed on Tuesday.

"As on July 15, 2014, the outstanding amount of sugarcane farmers of the country on sugar mills is Rs 10,541 crore, which is about 18.5 per cent of total amount payable during the current sugar season 2013-14," Food Minister Ram Vilas Paswan said in the Lok Sabha.

The dues in the current marketing year (October-September) have arisen mainly on account of low realisation from sale of sugar, he added.

According to the data, the total cane price payable as on July 15 of the ongoing 2013-14 marketing year stood at Rs 56,968.38 crore and out of that Rs 46,426.51 crore have been paid and Rs 10,541.87 crore is still outstanding.

Uttar Pradesh-based sugar mills owe the maximum at Rs 6,737 crore followed by Karnataka mills at Rs 1,836.59 crore, Tamil Nadu at Rs 638.33 crore and Bihar Rs 425.62 crore.

Paswan said the Sugarcane (Control) Order, 1966 stipulates payment of cane price within 14 days of supply, failing which interest at the rate of 15 per cent per annum on amount due for the delayed period is payable.

"State governments of Uttar Pradesh, Uttarakhand, Tamil Nadu, Karnataka, Haryana, Maharashtra, Telangana, Bihar, Andhra Pradesh and Punjab have informed that they have taken action against the defaulting sugar mills as per law," Paswan added.

India's sugar production is estimated to rise by 4 per cent to 25.3 million tonnes during the next marketing year starting October, despite a drop in cane area by 2 per cent, according to industry body ISMA.

Sugar production of India, the world's second largest producer, is estimated at 24.3 million tonnes in the 2013-14 marketing year (October-September).