April 21, 2024

Govt: 94% cane dues of current season paid to farmers

Government has ensured sufficient availability of sugar at reasonable prices throughout the country.

Measures of the Government have ensured sufficient availability of sugar at reasonable prices throughout the country for the whole year.

Measures of the Government have ensured sufficient availability of sugar at reasonable prices throughout the country for the whole year.

More than Rs 1.07 crores (94% of cane dues of the current season) have already been paid by mills to farmers, according to the government. The govt says that it creates enthusiasm among farmers about the sugar sector.

Measures of the Government have ensured sufficient availability of sugar at reasonable prices throughout the country for the whole year. As the current Sugar Season (Oct-Sep) 2022-23 is coming to an end on 30 Sep 2023, India has already crossed sugar production of 330 LMT excluding diversion of about 43 LMT for ethanol production. Thus, total sucrose production in the country would be about 373 LMT which is the second highest in the last five sugar seasons.

Restriction on Export

Ensuring priority to citizens and clearance of cane due to farmers, India restricted exports quota to about 61 LMT only. This has resulted in an optimal stock of approximately 83 LMT of sugar at the end of August 2023.

This stock is sufficient to meet approximately 3 and half months of consumption i.e. optimum stock available in the country at the end of the current sugar season 2022-23. This fact reassures domestic consumers that sugar is expected to be available for them at a reasonable price in the future.

Rains in Sugarcane Areas

As forecasted by IMD, till date monsoon has been normal in September 2023 and sugarcane areas of Maharashtra and Karnataka have also received rains improving prospects for better crops and recovery in the ensuing SS 2023-24.

State Cane Commissioners of all sugar-producing states have been requested to keep a watch on the status of crops and update their information on area under cane, yield, and anticipated sugar production. This information would become the basis for taking decisions regarding the sugar export policy for next season.

The government has always prioritised the availability of sugar for domestic consumption, diversion for ethanol production, and sufficient closing balance at the end of the season. Only surplus sugar, if available, is allowed for exports.

This mechanism ensures the stability of prices in the domestic market. It is the outcome of this policy only that Indian consumers are getting sugar at one of the lowest prices in the world with no government subsidy to the sugar mills.

As a proactive measure, the government has sought information related to traders from various sugar mills so that a mechanism may be put in place to closely monitor sugar stock in various parts of the country. Industry Associations also, in their feedback, have confirmed sufficient stocks and appreciated that achievement of optimum closing balance of sugar at the end of the season has resulted in better financial status of mills.

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