Over Rs 12,000 crore cane dues pending in ongoing sugar season
India’s sugar mills have cleared most cane dues for 2024–25, but ₹12,779 crore remains pending for 2025–26. While payments progress steadily, delays concern farmers. The government approved a higher FRP for 2026–27 to support incomes and sector stability.
Kolhapur: The sugarcane crushing season in India is in its final stage, with almost all mills having closed their operations. Sugar mills across the country have cleared a substantial portion of sugarcane dues in both the previous and the ongoing crushing seasons, though a sizeable amount remains unpaid in the current 2025–26 season.
According to official data, in the 2024–25 sugar season, mills paid Rs 1,02,209 crore out of the total payable Rs 1,02,687 crore as of April 20, 2026, achieving a clearance rate of 99.5%. This near-complete settlement reflects strong payment performance compared to earlier years.
In contrast, during the ongoing 2025–26 sugar season, mills have so far paid Rs 99,961 crore against total dues of Rs 1,12,740 crore, resulting in 88.6% clearance. This leaves approximately Rs 12,779 crore still pending to be disbursed to farmers.
The remaining unpaid amount continues to be a concern for sugarcane growers, as timely payments are critical for meeting agricultural expenses and preparing for the next crop cycle.
Officials indicated that while the overall pace of payments remains steady, efforts are ongoing to expedite the clearance of the remaining dues in the current season.
On Tuesday, the Centre approved the Fair and Remunerative Price (FRP) of sugarcane for the 2026–27 sugar season (October–September) at Rs 365 per quintal for a basic recovery rate of 10.25%. The government also announced a premium of Rs 3.56 per quintal for every 0.1% increase in recovery above 10.25%, and a reduction of Rs 3.56 per quintal for every 0.1% decrease below this level.
The government said the decision will impact the livelihood of about 5 crore sugarcane farmers and their dependents, as well as around 5 lakh workers directly employed in sugar mills. Farmer leaders, however, stated that the government should take steps to ensure that sugar mills clear pending cane dues at the earliest.
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Source : ChiniMandi
