News Capsule: Over 85% Cane Payments Completed, No Unusual Build-up in Arrears: Govt
09-Apr-2026 11:34 AM
News Capsule: Over 85% Cane Payments Completed, No Unusual Build-up in Arrears: Govt
★ In the 2025-26 (October–September) season, sugar mills have so far paid about INR 942.02 billion to farmers for sugarcane purchases, clearing around 85.5% of the total dues.
★ This season, mills were required to pay about INR 1.10 trillion in total, out of which around INR 160.26 billion remains outstanding so far. An official said that typically mills complete about 85% of payments by April, 90% by May, and 95% by June.
★ As per norms, sugar mills are required to pay farmers the government-fixed price within two weeks of cane procurement.
★ In April 2025, mills had total payable dues of INR 972.70 billion, out of which INR 850.94 billion had been paid, leaving around INR 120 billion as arrears.
★ Industry bodies have raised concerns over higher arrears this year, citing financial stress and urging the government to introduce supportive measures. However, government officials said that the increase in arrears compared to last year is expected due to higher cane crushing volumes and increased costs.
★ The Food Secretary said that sugarcane arrears are currently under control, noting that last year’s (2024-25) arrears were almost negligible at around 0.5%.
★ Sugarcane prices have also increased in the 2025-26 season, as states such as Uttar Pradesh, Punjab, and Haryana raised their State Advised Prices (SAP). The Centre also increased the Fair and Remunerative Price (FRP) by INR 15 to INR 355 per quintal.