While presenting the 2021-22 Union budget on February 1, finance minister Nirmala Sitharaman termed the government ‘farmer friendly’ and announced a slew of measures related to agriculture. But, one category has been left thoroughly disappointed — sugarcane farmers.

According to official records, sugar mills in the country owe more than Rs 15,000 crore to sugarcane farmers. Sugarcane farmers had hoped that even if they did not receive any sops, some decision would be taken to ensure they got their dues. “I have given about 500 quintals of sugarcane to sugar mills and put in 25 slips seeking payment. I’ve received just one payment in two months, and the mills owe me about seventy five thousand rupees. I had a lot of hope in the budget, but nothing happened,” Achal Sharma from Bijnor district of Uttar Pradesh told Gaon Connection.

However, the government has provided some sops for sugar mills. The finance minister told Parliament a provision of Rs 1,000 crore has been made for a scheme to provide assistance to sugar mills. In addition, a provision of Rs 600 crore has been made for sugar stock of 40 lakh metric tonnes and of Rs 2,000 crore towards sugar exports. 

On September 15, 2020, during the monsoon session of Parliament, Ajay Mishra, BJP MP from Kheri in Uttar Pradesh, had sought details from the Centre on the status of pending payments of sugarcane farmers. Rao Saheb Dadarao Danve, minister of state, consumer affairs, food and public distribution, told the house that as on September 11, 2020, Rs 12,994 crore was yet to be paid to sugarcane farmers for the 2019-20 season. 

In addition, sugar mills owed Rs 548 crore for the year 2018-19, Rs 242 crore for 2017-18 and Rs 1,899 crore for 2016-17. So far, payments worth Rs 15,683 crore is due from sugar mills to farmers, across the country.

The highest pending payment is in Uttar Pradesh, the largest sugar producing state in the country. As per data presented in the Lok Sabha, till September 11, 2020, the total arrears in the state is Rs 10,174 crore. 

Sharma cultivates sugarcane in about 10 bighas (2.5  hectares) in Tisotra village of Bijnor’s Najibabad block. “Although the government had promised direct help just a few days ago, we are still waiting. I received payment due for 2019 towards the end of 2020. Sugar mills owe farmers in my district about hundred crore rupees towards sugarcane,” he said over the telephone.

Anjani Dixit, a sugarcane farmer of Sherpur Simria village in Lakhimpur Kheri district of Uttar Pradesh, has sown sugarcane in 15 acres (6.07 hectares). “So far, I have just sold pedhi (ratoon crop or stubble crop) this season. I had received payment from Gola Sugar Mill in March last year. I still have a pending payment of about four lakh rupees for my pedhi crop. Modiji had said money would directly land in our accounts, and I am still waiting,” he rued.

“Even if the money that the mills owe us for sugarcane had been deposited in the bank, it would have earned us substantial interest by now,” Dixit told Gaon Connection.

Minister Danve had said in the Lok Sabha that 14 mills of Bajaj Hindustan were yet to pay Rs 2,961 crore to the farmers in Uttar Pradesh for the sugar season 2019-20. Besides this, three sugar mills in Lakhimpur owe farmers Rs 992 crore towards payment for sugarcane. 

Meanwhile, the central government took a decision to subsidise sugar exports in December last year. For the marketing year 2020-21, the Economic Affairs Committee of the Union Cabinet had also approved an aid of Rs 3,500 crore for direct transfer to beneficiary farmers.

Replying to a question in the Lok Sabha on February 2 this year, a day after the Union budget was presented, minister Danve said a provision of Rs 3,500 crore has been made for sugar mills for handling, upgrading and other costs on sugar exports so that the farmers do not face cash problems during the current crop season. 

Read the story in Hindi.