Punjab Sugarcane Growers Await ₹250 Crore Payments Following Crushing Season
Crushing season ends, Punjab cane growers still await ₹250-crore dues
Hindustan Times
Image: Hindustan Times
Despite the conclusion of the sugarcane crushing season in Punjab, farmers are still owed nearly ₹250 crore due to delays in state subsidies for private sugar mills. The state's sugarcane production has also decreased significantly this season, raising concerns about the sustainability of the industry.
- 01Punjab's sugarcane growers are awaiting ₹250 crore in payments linked to state subsidies.
- 02The state has a high state advised price (SAP) of ₹416 per quintal, but rising input costs remain a concern.
- 03Sugarcane production in Punjab decreased by nearly 20% this season, leading to early mill closures.
- 04Private mills have paid around ₹1,000 crore to farmers, but ₹250 crore remains pending.
- 05Efforts are underway by state officials to clear the outstanding dues.
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The sugarcane crushing season in Punjab, India, ended in March, but farmers are still waiting for payments totaling nearly ₹250 crore due to delays in state subsidies for private sugar mills. The Punjab government has set a state advised price (SAP) of ₹416 per quintal, one of the highest in India, with a subsidy of ₹68.5 per quintal to assist private mills. However, the rising input costs, with production costs estimated at ₹450 per quintal, have left farmers dissatisfied. This season, Punjab produced around 500 lakh quintals of sugarcane, a decline of nearly 20% from last year, which contributed to early mill closures. Of the total payments, private mills have disbursed around ₹1,000 crore, while approximately ₹250 crore remains unpaid. In the cooperative sector, ₹392 crore has been paid, but ₹303 crore is still owed. State officials have acknowledged the pending dues and are working to resolve the issue, with ₹62 crore already sanctioned for private mills and an additional ₹172 crore requisitioned for approval.
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The delayed payments could significantly affect the financial stability of sugarcane farmers in Punjab, impacting their ability to cover production costs and invest in future crops.
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