Sugarcane Farmers Await Payments as Rs 15,504 Crore Remains Unpaid

Sugar mills owe sugarcane farmers Rs 15,504 crore as of March 5, 2025, with the government implementing measures like fixing the sugarcane Fair and Remunerative Price and allowing surplus sugar diversion to ethanol. While payment processes are ongoing, substantial dues remain, especially in Uttar Pradesh, Karnataka, Maharashtra, and Gujarat.

Sugar mills across the country currently owe sugarcane farmers a staggering Rs 15,504 crore, as per government data up to March 5 in the ongoing marketing year. This financial obligation has prompted a series of government interventions aimed at stabilizing the sugar industry and ensuring timely payments to farmers.

Minister of State for Consumer Affairs, Food & Public Distribution, Nimuben Jayantibhai Bambhaniya, addressed the Rajya Sabha, highlighting that the payment of cane dues is an ongoing effort. She emphasized the government's initiatives, including the setting of the Fair and Remunerative Price (FRP) for sugarcane and the allowance for surplus sugar to be utilized in ethanol production, which have collectively contributed to easing the debt owed to farmers.

The government's strategic decision to allow the export of 10 lakh tonnes during the 2024-25 sugar marketing year has supported the sugar market by preventing a drop in ex-mill prices and reducing the buildup of arrears. Despite these efforts, a significant amount remains outstanding, with Uttar Pradesh leading in dues, followed by Karnataka, Maharashtra, and Gujarat.