Sugar mills owe Rs 9,252 crore to cane farmers as on July 31

Sugar industry has paid Rs 47,852 crore to cane farmers till July 31 of the current marketing year ending September while Rs 9,252 crore is still unpaid, Parliament was informed today.
"As on July 31, 2014, the outstanding amount of sugarcane farmers of the country on sugar mills is Rs 9,252 crore which is about 16.20 per cent of total amount payable during the current sugar season 2013-14," Minister of State for Food and Consumer Affairs Raosaheb Patil Danve said in a written reply to Lok Sabha.
Sugar marketing year runs from October to September.
Sugarcane arrears to farmers stood at Rs 10,541 crore as on July 15.

"The dues in the current sugar season have arisen mainly on account of low realisation from sale of sugar," he said.
According to data presented by the minister, the total cane price payable for 2013-14 marketing year is Rs 57,104.44 crore, of which Rs 47,852.34 crore have been paid till July 31. Cane price arrears stood at Rs 9,252.10 crore.

Out of Rs 9,252 crore arrears, Uttar Pradesh millers owe maximum to cane farmers at Rs 5,741.74 crore followed by Karnataka mills at Rs 1,794.68 crore and Tamil Nadu mills at Rs 504.40 crore.
Danve said the Centre has notified a scheme in January this year to extend interest free loans up to Rs 6,600 crore to sugar mills for clearing cane arrears.

Till July 18, State Bank of India, the nodal bank, has informed that banks have sanctioned Rs 5,914 crore under this scheme, he added.
The Sugarcane (Control) Order, 1966 stipulates payment of cane price within 14 days of supply, failing which interest at the rate of 15 per cent per annum on amount due for the delayed period is payable. The powers for enforcing this provision lie with the States/UTs.
India's sugar production is estimated to rise by 4 per cent to 25.3 million tonnes during 2014-15 marketing year starting October, despite a drop in cane area by 2 per cent, according to industry body ISMA.

Sugar production of India, the world's second largest producer, is estimated at 24.3 million tonnes in the 2013-14 marketing year. The annual demand is about 24 million tonnes.