Sugar mills owe Rs 15,504 crore to sugarcane farmers till March 5 of the current marketing year starting October 2024, according to the government data.
In a written reply to the Rajya Sabha, Minister of State for Consumer Affairs, Food & Public Distribution Nimuben Jayantibhai Bambhaniya said, "Payment of cane dues to farmers is a continuous process and cane payment by the sugar mills to the farmers are being made on a regular basis, resulting in reduction of cane dues."
To facilitate payment to farmers, she said the Centre has taken various measures, including fixing the Fair and Remunerative Price of sugarcane. It has allowed the diversion of surplus sugar to ethanol production.
The government has allowed the export of 10 lakh tonnes during the current 2024-25 sugar marketing year (October-September) to prevent a fall in ex-mill prices of sugar and accumulation of cane price arrears.
It has also fixed the Minimum Selling Price of sugar at Rs 31 per kg.
"As a result of these measures, a significant reduction has been seen in cane price arrears. Up to sugar seasons 2023-24, more than 99.9% of cane dues have been cleared and in the current Sugar Season 2024-25, more than 80% of cane dues have been cleared as on March 5, 2025," the minister said.
The total outstanding dues of sugarcane farmers stood at Rs 15,504 crore. Of this, Uttar Pradesh sugar millers owe Rs 4,793 crore, followed by Karnataka (Rs 3,365 crore), Maharashtra (Rs 2,949 crore) and Gujarat (Rs 1,454 crore).
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