Sugarcane arrears of farmers down: Ram Vilas Paswan

Food Minister Ram Vilas Paswan on Friday said sugarcane arrears of farmers have come down significantly to Rs 1,314 crore from peak Rs 28,222 crore for 2018-19 marketing year on back of several measures taken by Centre. Sugar marketing year runs from October to September. During Question Hour in Rajya Sabaha, Paswan said sugar production was high in 2017-18 and 2018-19 marketing years which led to a sharp decline in domestic ex-mill prices of sweetener.

"Low realisation from sale of sugar due to surplus sugar stocks h versely affected financial health of sugar mills, resulting in accumulation of cane arrears of farmers which peaked at Rs 23,232 crore during sugar season 2017-18 in May 2018 and at Rs 28,222 crore during sugar season 2018-19 in April 2019," Paswan said.

To boost liquidity position of mills and enable m clear cane price dues of farmers, he said Centre took various remedial measures such as providing assistance to mills to offset cost of cane, fixation of minimum selling price of sugar, financial assistance to maintain buffer stocks as well as exports, and soft loans. Paswan said cane price arrears w are almost "negligible" for last two sugar marketing years.

As a result of se measures, all-India cane price arrears of farmers have come down to Rs 251 crore for 2017-18 based on state-vised price (SAP) and Rs 134 crore based on central price called Fair and Remunerative Price (FRP). For 2018-19, arrears have come down to Rs 1,314 crore on SAP basis and Rs 931 crore on FRP basis, he said. Paswan said some states, including Uttar Presh, anunced ir own cane price called SAP, which is higher that Centre's FRP.

minister highlighted that Centre has taken many steps in 2019-20 as well to help sugar mills clear cane dues. He said Centre has created buffer stocks of 40 lakh tonnes of sugar, costing Rs 1,674 crore to exchequer. That apart, an assistance of Rs 6,268 crore is being provided to help mills export 60 lakh tonnes of sugar. Centre is also encouraging diversion of excess sugarcane and sugar to produce ethal for blending with petrol.

Paswan said sugar production is estimated at 273 lakh tonnes in 2019-20 as against domestic consumption of 260 lakh tonnes. In previous year, sugar output was 331 lakh tonnes as compared with 259 lakh tonnes domestic demand.