Indian money-losing sugar mills owe $4.38bn to cane growers

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Indian money-losing sugar mills owe $4.38bn to cane growers
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Industry and government sources say 50-million farmers have gone unpaid for their produce for more than a year

Workers harvest sugarcane in a field in Maharashtra, India. Picture: REUTERS/Rajendra Jadhav

Farm leaders say Prime Minister Narendra Modi’s government has not done enough to help them get the cash owed them. Modi’s office did not respond to an e-mail seeking comment. “Along with the fact that sugar prices are much below the cost of production, huge inventories worth 800-billion rupees are adversely affecting mills’ paying capacity,” said Abinash Verma, chief of the Indian Sugar Mills, the producers’ body.

“Most cane growers are barely able to scrape through and it’s sad that neither the state governments nor the Modi administration have done anything,” said Pushpendra Singh, president of the Kisan Shakti Sangh, a farmers’ association.

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