Crushing season ends, Punjab cane growers still await ₹250-crore dues
Punjab’s sugar mills still owe farmers nearly ₹250 crore in subsidy-linked cane payments despite the crushing season ending in March. Lower sugarcane output and delayed state subsidy releases have slowed dues clearance, while farmers argue the current SAP fails to cover rising production costs.
The sugarcane crushing season in Punjab concluded in March, but cane growers across the state are still awaiting payments worth nearly ₹250 crore linked to the state government’s subsidy for private sugar mills.
Punjab has fixed a state advised price (SAP) of ₹416 per quintal for sugarcane — one of the highest in the country. Of this, the state government provides a subsidy of ₹68.5 per quintal to private mills to help them meet the SAP. However, delays in releasing this subsidy have held up payments to farmers, even though mills ceased operations over two months ago.
According to official data, private mills have already paid around ₹1,000 crore to farmers, but nearly ₹250 crore remains pending. In the cooperative sector, ₹392 crore has been disbursed, while dues of about ₹303 crore are yet to be cleared.
Punjab’s sugarcane production also witnessed a dip this season. The state produced around 500 lakh quintals, down from 632 lakh quintals last year — a decline of nearly 20%, which led to mills shutting operations earlier than usual.
The state has a mix of private and cooperative sugar mills. Six of the seven private mills operated this season, including units in Mukerian, Dasuya, Keeri Afgana, Butter Sevian and Amloh, while the Dhuri mill remained closed for the third consecutive year.
In the cooperative sector, nine mills — including Morinda, Budhewal, Nawanshahr, Nakodar, Fazilka, Bhogpur, Gurdaspur, Batala and Ajnala — were operational.
Despite Punjab offering a higher SAP compared to neighbouring states — Haryana ( ₹415 per quintal) and Uttar Pradesh ( ₹400 per quintal) — farmers say the price does not cover rising input costs. “The cost of producing a quintal of sugarcane is at least ₹450. The SAP should be fixed above that,” said Mukesh Chander Sharma, vice-president of the Bharatiya Kisan Union (Rajewal) and a farmer from Rani Bhatti village near Jalandhar. He added that repeated reminders have been sent to the cane commissioner and the state agriculture department seeking early release of payments.
Officials in the state cooperative department confirmed the pending dues and said efforts are underway to clear them. Cane commissioner Amrik Singh said that ₹62 crore has already been sanctioned towards subsidy payments for private mills, while an additional ₹172 crore has been requisitioned for approval.
Sugarcane is cultivated on approximately 1.25 to 1.3 lakh hectares in Punjab annually, making it a relatively small but economically significant crop, especially in regions with access to mill infrastructure.
To Read more about Sugar Industry continue reading Agriinsite.com
Source : Hindustan Times
