With surplus sugar production and falling market demand pulling down sugar prices and leading to an accumulation of farmers’ arrears, the Centre has asked sugar mills to divert the excess cane and sugar for the production of fuel grade ethanol.
In an advisory to the mills, the Union Ministry of Consumer Affairs, Food and Public Distribution underlined that surplus production was depressing the ex-mill price of sugar, thus adversely affecting sale realisation and cash flow, which contributed to the accumulation of cane arrears.
To improve the liquidity and clear farmers’ dues, the Centre had taken several measures in the 2017-18, 2018-19 and the current 2019-20 sugar seasons.
