Categories: Business

Sugar mills owe more than Rs 22000 crore to sugarcane growers

Sugar mill
Image Source: GOOGLE

New Delhi: During the complete lockdown of the entire country for prevention of Coronavirus infection, due to the relaxation in the activities of agriculture and allied sectors, the farmers did not stop any work, but their dues on the sugar mills kept increasing. Looking at the data received on Saturday from the Union Ministry of Consumer Affairs, Food and Public Distribution, the arrears of sugarcane growers on sugar mills have crossed Rs 22,000 crore by 28 May 2020, with sugarcane crushing season 2019-20 as well as 2018. -19 includes arrears. According to the data of the Union Food Ministry, the sugarcane price outstanding during the sugar production and marketing season 2019-20 (October-September) is Rs 21,238 crore till May 28 on the sugar mills (based on State Advisory Price i.e. SAP) Was. Apart from this, the outstanding of sugarcane crushing season 2018-19 is Rs 815 crore.

Sugar comes under the category of essential commodities, so during the lockdown, the exemption for its production, transportation and marketing was given initially. But industry insiders said that domestic demand for sugar was affected during the lockdown, due to which mills are finding it difficult to pay dues to sugarcane growers.

The Ministry said in a statement that the Department of Food and Public Distribution has taken several measures in the current sugar season 2019-20, including spending of Rs 1674 crore on the maintenance of buffer stock of 40 lakh tonnes of sugar and sugar exports up to 60 lakh tonnes. The mills are included with a support amount of Rs 10,448 per tonne, which will cost about Rs 6,268 crore.

According to the Food Ministry data, the current season is expected to produce 270 lakh tonnes of sugar as compared to last year's outstanding of 145 lakh tonnes. Thus the total supply of sugar in the current season will be 415 lakh tonnes. However, the ministry estimates that domestic consumption may be around 240 lakh tonnes and exports around 5 million tonnes. Thus the outstanding stock for the next season will remain 125 lakh tonnes.

This post was published on May 31, 2020 10:55 am

Content Team

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