Good Progress in Clearing Dues to Sugarcane Farmers

09-Apr-2026 03:39 PM

New Delhi: The Central Government states that sugar mills across the country are making good progress in clearing the outstanding dues owed to sugarcane farmers; to date, more than 85 percent of the outstanding amount for the 2025-26 season has already been paid. As the outstanding dues owed by sugar mills to farmers have not yet reached an unmanageable level, the government currently sees no need to intervene in the matter.

According to senior official sources, sugar mills have cleared dues amounting to an estimated ₹942.02 billion to sugarcane growers at the national level during the current marketing season, representing 85.5 percent of the total outstanding amount. Although a larger volume of sugarcane was crushed this season—and the Fair and Remunerative Price (FRP) for sugarcane was also increased—payments are nevertheless being processed at a pace consistent with the expected seasonal schedule.

The total outstanding dues owed by sugar mills to sugarcane growers had risen to ₹1.10 trillion; of this, ₹942 billion has already been paid, and the process for clearing the remaining ₹68 billion is currently underway. Typically, sugar mills clear approximately 85 percent of the outstanding sugarcane dues by April, 90 percent by May, and up to 95 percent by June.

Due to a lack of sugarcane supply, most sugar mills in the country have ceased operations; even in the few remaining units where work is still ongoing, the supply of sugarcane is rapidly dwindling. By April of last year, the outstanding dues owed by sugar mills to sugarcane farmers stood at ₹972.70 billion, of which ₹850.94 billion had been paid.