BENGALURU: South Indian Sugar Mills Association (SISMA), the representative body of private sugar mills, has expressed its inability to clear about Rs 900 crore sugarcane dues pending since 2013-14 due to the slowdown in the sugar industry.

“Under the present financial condition, it is impossible to pay the dues of Rs 200 per tonne fixed by the state government over and above the Fair and Remunerative Price (FRP). The state government, therefore, should try and convince the farmers to accept this fact or pay from its pockets,” SISMA president Pavan Kumar told reporters here on Tuesday.

Sugar mill owners claim that they have already paid what was due and that the government was forcing them to pay more because of its commitment to farmers.

“During 2013-14, we were asked to pay Rs 2,825 per tonne, including harvesting and transportation (H&T) charges of Rs 325 per tonne. Since the H&T rates were much higher on the ground, we have paid Rs 525 as H&T and Rs 2,300 per tonne of sugarcane. 

“This means there are no dues at all. But the government is insisting that we pay Rs 200 more per tonne as it had promised farmers Rs 2,500 per tonne, which is unfair,” said Vidya Marakumbi of Shree Renuka Sugars. The mill owners also took exception to the methodology adopted to fix the FRP and accused authorities of not taking into account actual costs.

“There is a slowdown in the sugar industry all over the world. Since there is excess production, sugar prices are crashing. But sugarcane procurement prices are being fixed at higher levels. There should be a market-driven mechanism to fix cane prices or there should be a revenue-sharing formula between the mills and the farmers,” Pavan Kumar said.