Despite higher production and lower sugar prices in the current season as compared to previous sugar season, the cane price arrears are relatively lower than the previous season as a consequence of various measures taken by the Government of India and efforts of the State Governments. As on date, cane price arrears in current season on SAP basis is at Rs 7826 Crore in comparison to Rs.8982 Crore during the corresponding period of last sugar season. Even the cane price arrears for sugar season 2016-17 have been reduced to only Rs.52 Crores (on FRP basis) and Rs.1076 Crores (on SAP basis) against cane dues payable of Rs. 57,608 Crore. Thus, about 99.9% of cane dues (on FRP basis) in respect of sugar season 2016-17 have been cleared. Even in respect of 2015-16 sugar season, only Rs. 122 Crores (on FRP basis) and Rs. 710 Crore (on SAP basis) are pending and payments for earlier year arrears are in process.
The crushing of sugar cane during the current season is in full swing and the mills will be able to liquidate their cane dues by the sale of sugar and their by-products in coming days.
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