Sugarcane arrears cross Rs 16k cr; UP third in pending dues
India’s sugarcane arrears have risen to ₹16,087 crore in 2025–26, increasing financial stress on mills and delaying farmer payments. Despite higher sugar production, rising cane prices and stagnant MSP are squeezing margins, prompting industry calls for price revisions to ensure sustainability and protect farmer incomes.
PILIBHIT: Sugarcane arrears in the country rose to Rs 16,087 crore in the 2025–26 crushing season, up by Rs 2,049 crore from the previous season, raising concerns over timely payments to farmers, industry experts said at a recent two-day conclave and hackathon organised by Indian Sugar & Bio-Energy Manufacturers Association (ISMA).Uttar Pradesh ranks third in pending dues, with 121 sugar mills owing Rs 3,287 crore to farmers as of Feb 16. Maharashtra and Karnataka reported higher arrears of Rs 4,252 crore and Rs 4,956 crore, respectively.
As of March 31, 2026, India’s total sugar production stood at 272.31 lakh tonnes, up 9% from 248.78 lakh tonnes during the same period last year. Currently, 56 mills are operational across the country, compared to 95 a year ago.UP has produced 87.5 lakh tonnes so far, matching last year’s output. However, only 28 mills are operational now, down from 48 during the corresponding period last year.Maharashtra and Karnataka recorded production of 99.3 lakh tonnes and 47.90 lakh tonnes, respectively, up from 80.26 lakh tonnes and 39.94 lakh tonnes last year. The crushing season is about to end, and present, only four mills are operational in these two states.ISMA director Deepak Ballani told TOI that the mismatch between sugar prices and rising cane costs was straining mill finances.
“MSP has remained Rs 31/kg since 2019, while fair and remunerative price (FRP) has risen to Rs 355/quintal. This gap is driving losses and delaying payments,” he said.He added that with production costs at around Rs 40/kg, the current MSP is unviable. “We have urged the govt to revise MSP in line with costs to sustain the industry and protect nearly five crore cane growers,” Ballani said.Apart from the centrally fixed FRP, states announce their own SAP, which is higher. In Uttar Pradesh, SAP stands at Rs 390 per quintal, Rs 35 above the FRP.
To Read more about Sugar Industry continue reading Agriinsite.com
Source : The Times Of India
