Sugarcane farmers face Rs 16,087 crore in unpaid arrears amid policy criticism

The All India Kisan Sabha (AIKS) has criticized the Indian government’s sugar sector policies, alleging they favor private mills and corporate processors while leaving sugarcane farmers with significant unpaid dues. Total outstanding arrears to farmers have reached Rs 16,087 crore. Major contributions to this debt come from Karnataka (Rs 4,956 crore), Maharashtra (Rs 4,252 crore), and Uttar Pradesh (Rs 3,287 crore).

AIKS leaders Rajan Kshirsagar and Ravula Venkaiah noted that while domestic sugar prices have reached a 16-year high—with ex-mill prices rising to Rs 5,400-5,500 per quintal—farmers are not seeing the benefits. They argued that a large portion of the value generated from sugarcane is captured by industrial users in the food, beverage, and pharmaceutical sectors, which account for 60-75% of domestic consumption.

Furthermore, the organization highlighted that 18-20% of total cane crushed is diverted to meet the government’s E20 ethanol blending targets. While mills generate additional revenue from ethanol, power, and byproducts like bagasse, the AIKS claims an inadequate share of these profits is passed back to the farmers.