Due to surplus sugar production during the last four consecutive sugar seasons over domestic consumption and depressed sugar prices, the liquidity of the sugar mills have been adversely affected leading to accumulation of cane price arrears of the farmers.
The Government of India has taken several initiatives to help the sugar industry to resolve liquidity problems and thereby facilitate clearance of cane price arrears of farmers:-
Provided incentive on Raw Sugar Export for evacuation of excess stocks of sugar in the country.
Extended Soft Loan of Rs.4305 crore to improve liquidity position of the sugar mill enabling them clearance of cane price arrears.
Facilitated sugar mills for supply of ethanol under Ethanol Blending Programme (EBP) to achieve enhanced ethanol blending target.
Providing Production Subsidy @ Rs.4.50 per quintal cane crushed to offset cane cost and timely clearance of cane dues of farmers.
S.No.
Name of State
Cane Price Arrears ( in rupees crores)
Sugar Season 2015-16
On FRP Basis
On SAP Basis
1.
Bihar
30
30
2.
Haryana
0
126
3.
Punjab
0
226
4.
Uttrakhand
73
211
5.
Uttar Pradesh
1657
3929
6.
Andhra Pradesh
81
81
7.
Telangana
30
30
8.
Gujarat
203
203
9.
Maharashtra
494
494
10.
Karnataka
185
185
11..
Tamil Nadu
479
1030
12.
Puducherry
10
10
13.
Chhattisgarh
1
1
14.
Odisha
19
19
15.
Madhya Pradesh
6
6
16.
Goa
1
1
All India
3269
6582
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