Why Ambala sugarcane farmers are worried

The sugarcane crushing season is set to begin at Naraingarh Sugar Mills Limited in Ambala. However, farmers are yet to get their dues cleared for the sugarcane delivered to the mills the previous season. The farmers have to face the same situation every year and wait for the next season to get the dues cleared. While the situation has started improving over the past few years, delayed payment continues to be a concern for the sugarcane growers.

What is the cause of concern for sugarcane farmers?

The sugarcane farmers who have been delivering sugarcane to the Naraingarh Sugar Mills are forced to wait for the next season to get dues cleared due to poor financial condition of the mills. The sugarcane growers have resented the delay in payment and have repeatedly requested the state government to take over the private sugar mills, which is being run under the supervision of the stage government since 2019.

What are the dues of the previous season?

During the 2024-25 crushing season, over 42 lakh quintal sugarcane worth over Rs 168 crore was crushed, of which the dues are around Rs 11 crore. However, the situation has gradually improved in the past few years. Last year, the season started with dues of around Rs 22.74 crore and this year the dues are around Rs 11 crore. The mill authorities believe that if they receive adequate stock, no dues will be left for the next season.

What do the sugarcane  growers claim?

The sugarcane farmers said the issue had persisted for years due to the poor financial condition of the sugar mills. As per norms, the payment should be cleared within 14 days of the purchase. Some part of their entire payment is stopped and then the farmers are forced to wait till the start of the next crushing season and sale of sugar to get the dues of the previous year cleared. Due to the delay in payment every year, the sugarcane farmers have started shifting to other crops. The government and mills should clear the dues in time as the farmers had to pay labourers, prepare fields for the next crop and manage household expenses. In case of delay, the mills should pay interest on the delayed payments. Apprehending that their payments might get stuck again, the farmers have started shifting their produce to crushers and other sugar mills.

What assurance has been given to the farmers this year?

As per the farmers, the mills officials have told them that the operations will begin from November 21 and the dues will be cleared before December 15 and fresh payments will start from December 16. The mills will try to clear the payments within 20-25 days in the upcoming season.

What do officials of the sugar mills claim?

The unit head of the sugar mills claimed that the situation has improved over the years. The officials are hopeful that if the mills get adequate sugarcane and receive government subsidies in time, there will be no dues next year. A target of around 50 lakh quintals crushing has been set.