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The Parliamentary Standing Committee on Consumer Affairs, Food and Public Distribution, headed by senior DMK MP Kanimozhi Karunanidhi, has seen about a 32-fold increase in sugarcane arrears owed to farmers across the country compared to the last financial year. Farmer organizations have sought the Union government’s intervention to recover their dues as the next crop season is about to begin.
A report on the grant demands of the Union Ministry of Food and Public Distribution, tabled in both houses during the ongoing budget session, said the ministry informed the panel that the total arrears of cane price in the country as on February 16, 2026 is ₹16,087 crore. Sugarcane arrears during the same period in 2024–25 stood at ₹497 crore and in 2023–24 it was ₹34 crore. In 2025-26, the amount due to farmers was ₹79,818 crore, of which ₹63,731 crore has been paid and the remaining amount to be paid is ₹16,087 crore (79.85%), according to information provided in the report.
In Uttar Pradesh, arrears increased from ₹24 crore in 2023–24 to ₹321 crore in 2024–25 and ₹3,287 crore in 2025–26, a more than tenfold increase. In Maharashtra, it was ₹2, 123 crore and ₹4,252 crore in 2023–24, 2024–25 and 2025–26. Karnataka has the highest arrears. In the last two financial years, the arrears were nil and as on February 16 this year, the arrears stood at ₹4,956 crore. In Gujarat, arrears increased from ₹ 5 crore to ₹ 1,402 crore. In Tamil Nadu, the amount due to farmers is ₹ 203 crore and in Bihar ₹ 212 crore. Haryana owes ₹373 crore and Punjab’s arrears are ₹535 crore. Madhya Pradesh, Uttarakhand and Telangana owe sugarcane growers ₹366 crore, ₹235 crore and ₹152 crore respectively.
Farmer organizations have questioned the delay in payments. Senior All India Kisan Sabha leader from Maharashtra Ajit Nawale told The Hindu that the reason given to the farmers was that sugar prices are falling as exports have come down, so sugar mills are not able to pay farmers fair remuneration for sugarcane. “We were told that cooperative sugar mills in Maharashtra have asked the government for help. Payments owed to farmers have been stuck. We have protested demanding government intervention to resolve the farmers’ crisis,” Mr. Nawale said.
Bharatiya Kisan Union spokesperson in Uttar Pradesh’s Shamli district and young sugarcane farmer Shubham Malik said the reality on the ground is much worse. “The actual statistics of sugarcane arrears must be more than what the government announced. The farmers had to face two problems – one was a bad crop due to diseases and production dropped. Second, we didn’t get the prices for the sugarcane. The farmers are already feeling insecure because of the deal announced with the United States. If the government doesn’t help us get money for us, it will be very difficult, Mr. Mali.”
The panel noted that in every sugar season, sugar production is around 300-330 Lakh Metric Tonnes (LMT) against domestic consumption of 270-290 LMT, resulting in a huge transfer of sugar stocks to mills. “These excess stocks lead to blockage of funds and affect the liquidity of sugar mills, resulting in delayed payment of cane dues and ultimately leading to accumulation of cane arrears,” the report said.
The government told the panel that to address the problem of excess sugar and reduce cane arrears to farmers, it is encouraging sugar mills to convert surplus cane into ethanol. “Further, the minimum support price of sugar has also been revised from ₹29/- per kg to ₹31/- per kg along with imposition of stock holding limits on sugar mills,” the panel noted.
Published – 28 March 2026 22:21 IST
