Amid sugar glut, ISMA says unable to generate funds for paying farmers on time.

Days after the government allowed export of 20 lakh tonnes of sugar to clear surplus stocks and improve cash flow to millers for making payment to sugarcane farmers, the Indian Sugar Mills Association voiced inability to generate sufficient funds for payment due to cane farmers on time, citing depressed global sugar market as the reason. Quoting the latest all-India sugar production of 281.82 lakh tonnes by March-end, the association also said cane price arrears were estimated to have touched Rs 16,000 to 17,000 crore over the past 14 days. Considering lower sugar realisation from domestic sales as well as depressed global sugar market, sugar mills are unable to generate sufficient funds for payment of cane price to the farmers on time.