UP sugar industry owes Rs 4,600 crore to cane farmers

Sugar mills in the biggest sugarcane-producing state, Uttar Pradesh, have accumulated dues of over Rs 3,600 crore to farmers in the sugar season that started in October 2013. The rising arrears are set to become an issue in the run-up to the Lok Sabha polls due by May as millions of farmers and their families are dependent on sugarcane. The industry also owes farmers Rs 1,000 crore for sugarcane purchased in the 2012-13 season. 


Based on purchases in the current season, the UP sugar mills should have paid Rs 5,900 crore to the farmers. However, as on 30 January, they had only paid Rs 2,300 crore. "This was expected to happen since the industry lacks the capacity to pay the announced sugarcane price. Sugar price has fallen further since the time this price was announced and we are helpless," said an industry executive.