WITH A bounce in sugar exports and a spike in diversion for ethanol manufacturing, sugarcane arrears to be paid by mills to farmers for 2021-22 have come right down to Rs 5,910 crore at finish of the season on September 30, which is the bottom in 5 years, in keeping with the newest knowledge out there with the Division of Meals and Public Distribution.
The information exhibits that sugarcane value Rs 1.18 lakh crore was procured from farmers throughout the 2021-22 season, of which Rs 1.12 lakh crore has been paid until September 30 — leaving Rs 5,910 crore in dues, which is 5 per cent of the quantity payable.
This assumes significance as the quantity of sugarcane procured within the 2021-22 season was “traditionally” excessive, in keeping with the Authorities. In the course of the 2020-21 seaon, mills procured sugarcane value Rs 91,676 crore.
Subodh Kumar Singh, Joint Secretary, Division of Meals and Public Distribution, attributed “the bottom stage” in arrears to “document manufacturing of ethanol and export of sugar”.
“That is regardless of the traditionally document procurement — Rs 1.18 lakh crore — of sugarcane by mills within the nation. The cane arrears are about Rs 6,000 crore, which is the bottom as in comparison with the arrears as on September 30 throughout the earlier years. Aside from this, the Agriculture Ministry has improved styles of sugarcane attributable to which yield and restoration have improved. Now, the restoration is about 11 per cent,” Singh informed The Indian Categorical.
“The Authorities’s insurance policies concerning sugarcane have been very secure. Now, we’re surplus in sugar. Subsequently, if the sugar inventory is larger and doesn’t get liquidated, then the sugar mills face issues in clearing dues to farmers. For this, the Authorities has launched an ethanol mixing programme. Underneath this programme, final yr (2020-21), sugarcane equal to about 22 lakh metric tonnes sugar was diverted for ethanol manufacturing, this time (2021-22), we have now diverted about 35 lakh metric tonnes,” he stated.
“Moreover, there may be…sugar export. Final yr, about 70 lakh metric tonnes of sugar was exported, this yr it’s going to be about 112 lakh tonnes,” Singh stated.
The information exhibits that the amount of ethanol provide has elevated to 302 crore litres throughout the provide yr (2020-21, December to November) from 173 crore litres in 2019-20. Sugar exports have additionally elevated in recent times — from 58.59 lakh metric tonnes in 2019-20 to 70 lakh metric tonnes in 2021-22. Within the season 2021-22, sugar exports have already crossed the 109 lakh metric tonnes mark. That is the provisional determine which can go up when the ultimate knowledge is out there.
Nevertheless, whereas the general sugarcane arrears have come down, it’s nonetheless larger in states like Uttar Pradesh, the info present. In UP, out of the Rs 35,201 crore payable to farmers by mills throughout the 2021-22 season, Rs 31,258 crore has been paid, leaving arrears of Rs 3,943 crore (12.6 per cent), which is the best throughout the nation.
In keeping with Meals Ministry knowledge, mills procured sugarcane value Rs 33,023 crore in UP throughout the 2020-21 season, of which Rs 5,053 (15.30 per cent) remained unpaid on the finish of the season on September 30, 2021.
One other state the place the sugarcane dues are larger is Gujarat. In Gujarat, in opposition to the payable quantity of Rs 3,891 crore throughout the 2021-22 season, Rs 2,892 crore has been paid to farmers, leaving arrears of Rs 1,035 crore (34.5 per cent).