Arrears to sugarcane farmers touch Rs 21,000 crore: Govt

However, Paswan said that govt was not currently considering any proposal to provide interest-free working capital loan to sugarcane growers

The arrears to be paid to sugarcane farmers stands at Rs 21,000 crore and all efforts are being made to address the problems, the government said today.

Union Minister Ram Vilas Paswan told the Lok Sabha that the government would take "appropriate decision at appropriate time" but said it was not currently considering any proposal to provide interest-free working capital loan to sugarcane growers.

Noting that "whatever needs to be done the government is doing", Paswan said the arrears to sugarcane farmers now stands at Rs 21,000 crore.

Paswan, who is the Minister of Consumer Affairs, Food and Public Distribution, said the matter has been taken up at the highest level and the government is making efforts to address the problems.

"The central government has received proposals and suggestions from various state governments including Maharashtra, which include financial assistance such as continuance of incentive for raw sugar export, creation of strategic buffer stock of sugar, interest free working capital loan," Paswan said during Question Hour.

The Minister said the government has already extended raw sugar incentive scheme for providing incentive at the rate of Rs 4,000 per metric tonne upto 14 lakh metric tonne for the current sugar season 2014-15.

"As regards creation of strategic buffer stock of sugar and interest free working capital loan, presently there is no proposal under consideration," he noted.

There are 302 private sugar mills and 221 in the cooperative sector, among others, that are operating in the current sugar season.