Why sugar farmers remain under the stress of mounting payment dues

Cost-price mismatch is only part of the story; lack of working capital for mills and delay in release of subsidy add to the strain in the entire system

India’s sugarcane dues accruing to farmers have remained stubbornly high despite the government announcing a series of measures in the past few years to provide alternative revenue streams so that reliance on sugar and the volatile nature of the commodity's prices is minimised.

According to senior industry officials, as the 2019-20 sugar season (October-September) draws to a close, around Rs 16,000 crore still remains to be paid to farmers for sugarcane purchased from them in the previous years. Of this, a  maximum of about Rs 11,000 crore is due to be paid to Uttar Pradesh farmers alone.

UP and Maharashtra