Sugarcane arrears at Rs 5,695 crore in current season

NEW DELHI: Sugar mills owe Rs 5,695 crore dues to cane growers so far in the 2015-16 marketing year ending next month, Parliament was informed today.

As per the data placed by Minister of State for Food C R Chaudhary before the Lok Sabha, sugarcane dues of Rs 5,695.15 crore are outstanding against the sugar mills as on July 27 of of the 2015-16 season (October-September).

Of the total cane arrears, private sugar mills owe maximum dues of Rs 4,375.29 crore, followed by cooperatives at Rs 1,212.28 crore and public mills at Rs 107.58 crore in the said period.

In a written reply to the Lower House, the Minister said the financial health of sugar mills has been "adversely affected" due to surplus production during last four consecutive sugar seasons.

The Centre has taken several steps to help the sugar industry resolve the liquidity problems and facilitate clearance of cane price arrears of farmers, he added.

Indian Sugar Mills Association (ISMA) has requested the Centre to adopt a rationalised cane price policy linking cane price to sugar rate. "The request of ISMA has been forwarded to sate government for their consideration/adoption," he said.

Sugar production is estimated to be lower at 25.1 million tonnes in the 2015-16 season from 28.3 million tonnes in the previous year.