Record sugar exports help reduce cane payment arrears

Pending dues to farmers a thorny political issue in several States

Sugar mills have surpassed their 60 lakh metric tonne export target this year, making it easier for them to pay cane farmers and reducing arrears for this year to less than ₹9,000 crore, according to government data. Pending dues to cane farmers are a thorny political issue in several States, provoking protests in western Uttar Pradesh and Punjab. Earlier this month, the Supreme Court issued notices to 11 States and major sugar producers to develop a mechanism to ensure that farmers are paid on time. Given that India produces more sugar than it consumes, leading to liquidity concerns for mills and delayed payments to farmers, the Centre has been encouraging diversion to exports and ethanol production. Exports have increased more than ten times from just 6.2 lakh metric tonnes in 2017-18, with the Centre now providing assistance to the tune of ₹6,000 per tonne to facilitate exports.