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Government asks Sugar Mills to Clear Farmers’ Arrears

Chander Mohan
Chander Mohan

It is good news that the Government has taken stringent action advising the Sugar Mills to clear sugarcane farmer’s arrears.  In order to improve the liquidity of the sugar mills to facilitate them for clearance of cane price arrears of farmers, the Central Government has set export targets by allocating mill-wise Minimum Indicative Export Quotas (MIEQ) of 50 LMT of sugar for export in current season 2018-19.  

In view of huge carryover stock and estimation of excess production of sugar in the current season 2018-19 (October-September), it has been observed that the sugar mills are not undertaking export of sugar at a preferred pace. Only around 2.46 LMT of sugar has been exported and contracts of just about 6 LMT in the 1st quarter of the season. The Central Government has taken a very serious view about non compliance of the directives of the Government by most of the sugar mills. All the sugar mills have been once again advised to start export of sugar as per their allocated quantity of MIEQ failing which proper action would be taken against them.  

Further, as indicated previously in the monthly stock holding limit order issued to these mills, they are required to set their quarterly export targets and inform the same to the Food & Public Distribution (DFPD) Department. It must be noted that the fulfillment of the quarterly export target by the sugar mills is checked by the DFPD. If a sugar mill fails to attain its quarterly sugar export target, the equal quantity of un-exported sugar during the quarter in question shall be subtracted in 3 equal installments from the quantity of sugar to be allocated to them.

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