Cane arrears had touched Rs 21,000 crore during 2014-15 season (October-September) as sugar prices were subdued due to surplus production for the last five years. “Sugarcane price arrears for sugar season 2015-16 have come down to Rs 6,225 crore. As on today, 87 per cent cane dues have been paid for the season. During the same period last year, the dues amounted to Rs 19,437 crore,” the Food Ministry said in a statement.

 

Out of Rs 6,225 crore cane arrears, Uttar Pradesh has the maximum share of Rs 2,428 crore, followed by Karnataka at Rs 1,325 crore and Maharashtra at Rs 883 crore.Refuting the government’s claim, Bharatiya Kisan Union (BKU) leader Rakesh Tikait said, “The government has not done justice to farmers. It has benefitted millers and not poor farmers. The cane growers are still in distress as their payments are pending for over years.”

 

“The Rs 6,225-crore care arrears are still with millers, who are diverting farmers’ hard-earned money to nurture their other business consortiums. The government should first ban such practices, only then farmers can get their dues,” Tikait said, adding that a major protest would be soon launched against millers to release farmers' arrears.

 

The statement added that in the past one year, the government had taken several steps to improve liquidity position of sugar mills, enabling them to clear cane prices due to farmers. The government had provided soft loan to millers to clear cane arrears. It also increased import duty to 40 per cent and offered export subsidy on raw sugar and a production subsidy to sugar mills to offset cost of cane price.