Sugar mills owe Rs 6,582 crore to cane farmers
FRP is the minimum price fixed by the Centre that mills have to pay to cane farmers.
New Delhi: Sugar mills owe Rs 6,582 crore to cane farmers as on July 15, the government said on Tuesday.
"As on July 15, 94 per cent of cane dues payable on Fair and Remunerative Price (FRP) basis for the sugar season 2015-16 has been cleared," Minister of State for Food C R Chaudhary said in a written reply to the Lok Sabha.
The cane price arrears of Rs 3,269 crore on Fair and Remunerative Price basis and Rs 6,582 crore on State Advised Price basis are outstanding against the sugar mills, he added.
FRP is the minimum price fixed by the Centre that mills have to pay to cane farmers. Some states like Uttar Pradesh announced their own cane price.
The minister said the liquidity of the sugar mills has been adversely affected due to surplus sugar production during the last four consecutive marketing years and depressed sugar prices, leading to accumulation of cane price arrears of the farmers.
Chaudhary said the government has taken several steps to help the sugar industry to resolve liquidity problems and facilitate clearance of cane price arrears of farmers.