Productivity of sugar mills increased, over 99% cane dues cleared: Goyal

Over 99 per cent sugar cane dues to farmers in the country have been cleared by mills which amounts to over Rs 1.14 lakh crore out of the Rs 1.15 lakh crore outstanding, Union Minister Piyush Goyal said in the Lok Sabha on Wednesday.

He also said that now only Rs 516 crore outstanding is due with regards to three sugar mills in Uttar Pradesh against whom action is being taken.

Goyal, Union Minister of Commerce, Industry, Consumer Affairs and food, said in 2013-14, Rs 57,000 crore had been given to farmers as sugar cane price.

Cane price dues used to be given to farmers after two-three years. However, in 2022-23, cane production increased by one-and-a-half times and cane dues stood at Rs 1,15,000 crore.

"Of this, Rs 1,14,000 crore has been paid to farmers on time which is more than 99 per cent," he said, inviting a sharp response from some opposition members who claimed the figures were not correct.

The minister said productivity of the mills has increased, cooperative mills have become active and they are on profits and employees jobs are getting secured.

He said 10-12 years ago, there were incidents of unrest in sugar mills and cane farmers were not getting their dues and they had to come out on the streets to protests.

However, he said, ever since the BJP government came to power in 2014, Prime Minister Narendra Modi took multiple steps keeping in mind various aspects of the sugar sector through his far sightedness.

These include steps to help sugar mills get proper prices, reducing their loans. Besides ethanol has been given primacy so that the sugar mills get help in paying cane farmers, he said.

Goyal said earlier, there was just one per cent mixing or blending of ethanol with petrol but now it is 12 per cent, which is a 1200 per cent increase.

"With these steps, sugar mills have started getting money and they have become viable. As a results, 99 per cent farmers are getting their dues on time. There is no agitation by the farmers anywhere in the country," he said.

The minister said ethanol blending is also good for the environment.

"As a results consumption of fuel gets reduced and we are saving on foreign exchange," he said.