scorecardresearch
Follow Us:
Tuesday, October 26, 2021

At end of sugar season, arrears to cane farmers lowest in 4 years

The official said that in 2020-21 sugar season, cane worth Rs 91,685 crore was procured by mills, against which most dues have been paid to farmers, and only Rs 6,667 crore — or 7% cane arrears — are pending.

Written by Harikishan Sharma | New Delhi |
Updated: October 1, 2021 8:04:32 am
Out of Rs 6,667 cane arrears at the end of sugar season 2020-21, a maximum Rs 5,053 crore is due in Uttar Pradesh alone.

Sugarcane arrears, to be paid by mills to farmers, have come down to Rs 6,667 crore at the end of sugar season 2020-21, the lowest in four years, according to an official of the Ministry of Consumer Affairs, Food and Public Distribution said.

The official said that in 2020-21 sugar season, cane worth Rs 91,685 crore was procured by mills, against which most dues have been paid to farmers, and only Rs 6,667 crore — or 7% cane arrears — are pending.

At the end of 2019-20 sugar season, the arrears figure was Rs 10,342 — or 13.62% — of Rs 75,928 crore, payable to farmers.

The figure of cane arrears for 2020-21 is provisional and is expected to go down to Rs 6,000 crore in the final data, the official said.

Sugar season in India begins October 1 and ends September 30 the following year.

Subodh Kumar Singh, Joint secretary, Food & Public Distribution, told The Indian Express that a higher sugar export and higher quantity of sugar diverted for making ethanol are two main factors that helped bring down arrears. “In the last three years, sugar exports have gone up. During 2020-21 sugar season, we expect sugar exports to reach 70 lakh metric tonnes — from 60 LMT the previous season,” he said.

“Besides, diversion of sugar for making ethanol has also increased from 9.3 lakh metric tonnes to 22 LMT in 2020-21 sugar season. It is expected to reach 35 lakh metric tonnes in coming years,” he said.

Singh said that the opening stock of sugar is also expected to come down to 90 LMT as on October 1, 2021 from 110 LMT the same day last year, and 145 LMT the same day in the year before that. It is expected to come further down to 70 LMT as on October 1, 2022, he said.

Out of Rs 6,667 cane arrears at the end of sugar season 2020-21, a maximum Rs 5,053 crore is due in Uttar Pradesh alone.

According to the Food Ministry’s data, sugar mills procured cane worth Rs 33,023 crore in UP during 2020-21 season, against which Rs 5,053 remained unpaid at the end of the season.

📣 The Indian Express is now on Telegram. Click here to join our channel (@indianexpress) and stay updated with the latest headlines

For all the latest India News, download Indian Express App.

  • Newsguard
  • The Indian Express website has been rated GREEN for its credibility and trustworthiness by Newsguard, a global service that rates news sources for their journalistic standards.
  • Newsguard
0 Comment(s) *
* The moderation of comments is automated and not cleared manually by indianexpress.com.
Advertisement
Advertisement
Advertisement
Advertisement