Concerned over pending sugarcane arrears worth ₹19,300 crore, the Centre has asked the 13 sugar–growing States to make all possible efforts to facilitate early payment to farmers.

“The Centre is conscious of the financial problems of the sugar industry, hence it has already taken a number of initiatives to help the industry to facilitate payment of arrears,’ said Food Minister Ram Vilas Paswan, after a meeting of with the State Chief Ministers here on Thursday.

‘Hike import duty’

Agriculture Minister Radha Mohan Singh, who was also in the meeting, said assistance given to sugar mills should be provided directly to farmers. 

He also called for encouraging sugar exports and hiking import duty by 40 per cent to “stop the imports”. 

Paswan assured the States that he would take up their suggestions with the Ministries concerned and take a final view in the interests of both farmers and industry. 

Key suggestions

The key suggestions made by the States include creation of a buffer stock of sugar, for loans to be made available from the Sugar Development Fund for ethanol production, modernisation of mills and co-generation and exemption for producing ethanol directly from molasses.

States also sought import of sugar to be banned and duty hiked to 40 per cent “immediately”, as also incentives for export of white sugar.  On Wednesday, Paswan had met 24 farmer organisations from cane-growing States and had assured them that his Ministry would push for import duty hike from 25 per cent to 40 per cent.