As on August 31 of 2011-12 marketing year that ended last month sugar mills owe Rs 1,233 crore to sugarcane growers. The sugar mills have already paid Rs 49,899 crore till August 31 of 2011-12 marketing year (October-September) period while the cane arrears stood at Rs 1,233 crore, as per the report compiled by the Food Ministry. The data showed that as against Rs 44,530 crore in the previous year the total cane price payment is estimated at Rs 51,132 crore for the entire 2011-12 marketing year.
Of the total cane arrear, Uttar Pradesh mills accounted for a maximum of Rs 440.84 crore, followed by Tamil Nadu and Uttarkhand which stood at Rs 304 crore and Rs 151.89 crore respectively. On the other hand, the country's largest sugar producing state, Maharashtra cane arrears were mere Rs 16 crore.
For the 2011-12 marketing year, the Centre had fixed the Fair and Remunerative Price (FRP) of sugarcane at Rs 145 per quintal but the states like Uttar Pradesh, Tamil Nadu and Uttarkhand had announced State Advisory Price (SAP), which is much higher than the FRP. Under SAP, the cane price is around Rs 250 per quintal in Uttar Pradesh.
In the 2011-12 marketing year sugar mills had produced 26.2 million tonnes (MT) of sugar as against 24.42 MT in the previous year while the country’s annual domestic demand is 22 MT. The country is exporting sugar on account of surplus production and about 3.5 MT of the sweetener has been shipped so far.
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