Mounting cane arrears: Sugar millers, farmers stage protest

Sugarcane farmers and millers from states like Uttar Pradesh and Bihar today staged a protest here demanding the government allow state-run agencies like MMTC and STC to export 3 million tonnes of sugar, thereby helping clear cane arrears of over Rs 21,000 crore.
Around 30-40 farmers and representatives from sugar factories like Riga Sugar Company and Tirupati Sugars Ltd are on a two day protest.
"As a long term solution, the government should buy 3 million tonnes of sugar from factories at a cost price and export through MMTC and STC. Losses incurred by these agencies should be compensated," Riga Sugar Company Chairman and Managing Director O P Dhanuka said.

He also demanded that the government should ban sugar imports and fix the sugar price based on the fair and remunerative price (FRP) so that sugar factories can realise the cost and make the cane payment.
Sugar companies are not able to clear dues as they are incurring losses for last four years. "Your recent relief announced will not serve any long-term solution to sugar woes," he said, adding that a representation has also been made Prime Minister Narendra Modi on this issue.
Early this month, the government had announced Rs 6,000 crore soft loans to sugar millers to help clear huge cane arrears. The loans will be given to units that have cleared at least 50 per cent of their outstanding arrears by June 30.

Other measures taken were hike in sugar import duty to 40 per cent from 25 per cent, and removal of excise duty on ethanol supplied for blending with petrol among others.
India's sugar production is estimated to cross 28 million tonnes in the 2014-15 marketing year (October-September), against 24.3 million tonnes the previous year. The total annual demand is pegged at only 24 million tonnes.