New Delhi: As sugar mills are facing liquidity issue, sugarcane arrears have increased by 54 times in just one year, said Danve Raosaheb Dadarao, MoS, Ministry of Consumer Affairs in reply to a question in the Rajya Sabha. Sugar mills in India, who is suffering from surplus sugar, owe sugarcane farmers whopping 15,565 crore, which was Rs 285 crore in the previous year.
Farmers from major sugar-producing states like Uttar Pradesh, Maharashtra, and others are the most affected due to the financial scarcity of sugar mills. The maximum amount of cane arrears owed by sugar mills in Uttar Pradesh followed by Maharashtra.
Danve Raosaheb Dadarao said in Rajya Sabha, “With an aim to assist sugar mills and improve their financial position to clear cane arrears, the government has increased the minimum selling price of sugar from Rs 29 to Rs 31 per kg.”
Due to non-payment of sugarcane dues, farmers from various states have intensified their protest.
The Central government had introduced various measures, hike in the MSP of sugar, soft loan scheme, and others to help millers clear mounting sugarcane dues. But, sugar mills failed to clear it, citing surplus sugar and depressed sugar prices.
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