New Delhi: According to official data, Sugar mills across the country owe a staggering Rs 15,504 crore to sugarcane farmers as of March 5 in the ongoing 2024-25 marketing year, which began in October 2024.
Karnataka has the second-highest outstanding payments, with sugar factories in the state yet to pay Rs 3,365 crore to farmers. Deccan Herald reports that Uttar Pradesh tops the list with unpaid dues of Rs 4,793 crore, followed by Maharashtra at Rs 2,949 crore and Gujarat at Rs 1,454 crore.
The sugar factories in Karnataka have cleared all their dues to farmers for the 2023-24 fiscal year, the report stated. The sugarcane season, which includes planting and harvesting, runs from October to March in India.
“The payment of cane dues to farmers is an ongoing process, and sugar mills are making regular payments, leading to a gradual reduction in outstanding dues,” Minister of State for Consumer Affairs, Food and Public Distribution Nimuben Jayantibhai Bambhaniya stated in a written reply in the Rajya Sabha.
To ensure timely payments, the minister said the government has taken several steps, such as setting the Fair and Remunerative Price (FRP) for sugarcane and promoting the diversion of surplus sugar for ethanol production. Additionally, the Centre has allowed the export of 10 lakh tonnes of sugar during the 2024-25 marketing year to prevent a decline in ex-mill sugar prices and the accumulation of cane price arrears. The government has also set the Minimum Selling Price of sugar at Rs 31 per kilogram, she added.
“These initiatives have led to a significant reduction in cane price arrears. By the end of the 2023-24 sugar season, more than 99.9% of cane dues had been cleared, and in the ongoing 2024-25 season, over 80% of dues had been settled as of March 5, 2025,” the minister said.
Meanwhile, the Indian Sugar and Bio-Energy Manufacturers’ Association (ISMA) has revised its sugar production estimates for the current marketing year downward to 264 lakh tonnes. As of March 10, sugar production in the country has reached 233.09 lakh tonnes, with 228 mills currently in operation.
Important News:
Season 2024-25: ISMA revises net sugar production estimates to 264 lakh tonnes
Latest Sugar News: For more details and in-depth insights, keep reading ChiniMandi, your go-to source for the latest news on the Sugar and Allied Sectors
