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Informist, Wednesday, Apr. 8, 2026

 

--Govt: Mills so far paid over 85% of cane payment dues to farmers in 2025-26
--Govt: Cane payments progressing well, no unusual build-up in cane arrears

 

By Afra Abubacker 

 

NEW DELHI - Sugar mills across the country have paid INR 942.02 billion so far for sugarcane purchases to farmers, clearing 85.5% of total dues in the 2025-26 (Oct-Sep), a senior government official said. The sugarcane payments are broadly in line with the seasonal trends, despite higher sugarcane crushing volumes and increased cane costs, the official said. 

 

Mills had to pay farmers INR 1.10 trillion for sugarcane purchases so far this season. With 85.5% of sugarcane dues cleared, the outstanding arrears stood at INR 160.26 billion so far in the 2025-26. "Mills usually complete 85% payments in April, 90% in May, 95% in June," the official said on the sidelines of ISMA SugarNXT 2026 on Wednesday. 

 

Sugar mills are required to pay farmers government-fixed prices for sugarcane within two weeks of purchase. In April 2025, mills had INR 972.70 billion as payable cane dues, of which they had paid INR 850.94 billion. With 87?ne dues cleared, mills had over INR 120 billion as arrears as of Apr. 28, 2025.

 

Citing a rise in sugarcane arrears compared with last year, sugar industry bodies have raised concerns about financial stress and asked the government to implement supportive policies. However, government officials pointed out that cane arrears were bound to rise above last year's level due to higher cane-crushing volumes and increased cane costs.

 

On Tuesday, Food Secretary Sanjeev Chopra said sugarcane arrears are largely under control. "Last year's (2024-25) sugarcane arrears are almost virtually negligible, probably 0.5%. This year, we are still trying to get the figures from various states," Chopra said on the sidelines of ISMA SugarNXT Tuesday.

 

Chopra hoped that mills would utilise the government-provided export quotas, as global sugar prices have recently firmed. In addition, ethanol sales to oil marketing companies have offered liquidity to the sugar industry, he said, hoping that these revenue streams would ensure cane arrears are cleared. 

 

Sugarcane prices have increased in 2025-26 as states including Uttar Pradesh, Punjab, and Haryana have raised their state-advised prices. The Centre also hiked fair and remunerative price by INR 15 to INR 355 per 100 kg in 2025-26.  End

 

Edited by Saji George Titus

 

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