Lok Sabha Question No. 3348 (UNSTARRED), answered on 2016-12-06
Subject: Sugar Development Fund Rule, 1983
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: BHARTRUHARI MAHTAB, KAPIL MORESHWAR PATIL, SANJAY SHAMRAO DHOTRE, RODMAL NAGAR, SATYA PAL SINGH, SRINIVAS KESINENI

## GOVERNMENT OF INDIA

## MINISTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION

## DEPARTMENT OF FOOD AND PUBLIC DISTRIBUTION

## LOK SABHA

UNSTARRED QUESTION NO. 3348

TO BE ANSWERED ON 06 th  DECEMBER, 2016

SUGAR DEVELOPMENT FUND RULE, 1983

3348.

SHRI BHARTRUHARI MAHTAB:

SHRI KAPIL MORESHWAR PATIL:

SHRI SANJAY DHOTRE:

SHRI NAGAR RODMAL:

DR. SATYAPAL SINGH:

SHRI KESINENI NANI:

Will the Minister of CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION miHkksDrk ekeys] [kk| vkSj lkoZtfud forj.k ea=h be pleased to state:

- (a) the  salient  features  of  the  Sugar  Development  Fund  (SDF)  Rule,  1983 along  with the number of potentially viable sick  sugar  mills which benefited from it across the country during each of the last three years and the current year, State-wise;
- (b) whether  the  Government  has  conducted  any  study  to  ascertain  the number of such sugar mills across the country during the said period, if so, the details  and  the  outcome  thereof,  State-wise  along  with  the  implementation status of the findings/recommendations of such a study;
- (c) whether the  Government has received  proposals  for  restructuring  SDF loans of such mills during the said period, if so, the details thereof, State-wise;
- (d) the details of sick or closed sugar mills during the last three years and the plan of Government to revive/open new sugar mills to increase production; and
- the details  of the complaints received  on the problems being faced by the  sugar  industry  and  the  corrective  steps  taken  in  this  regard  including financial assistance provided to sugar mills and Undertakings during the said

## A N S W E R

MINISTER OF STATE FOR  CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION

(SHRI C. R. CHAUDHARY)

(a): Under the  Sugar Development Fund (SDF) Rules 1983 the proceeds of the sugar cess levied and  collected under Sugar Cess Act, 1982 are  utilized by the Government of India for various types of financial assistance  to Sugar Industry/farmers including in the form of loans for Modernisation /rehabilitation,  sugarcane  Development,  Bagasse  based  Cogeneration  power project,  Ethanol  production  from  molasses,  setting  up  plant  for  Zero  Liquid Discharge and interest subvention to the  sugar factories towards interest on loans in terms of any scheme approved by the Government from time to time. The full text of the SDF rules is available on the Department's website www.dfpd.nic.in

- (e) period?

The  SDF  Rules,  inter  alia,  also  provide  for  loans  for  potentially  viable  sick sugar undertakings for rehabilitation/ modernisation and sugarcane development as well as restructuring of SDF loans, based on the recommendation / scheme of the Board for Industrial and Financial Reconstruction (BIFR) in the case of private sector  sugar  mills  and  Committee  for  Rehabilitation  (COR)  in  the  case  of Cooperative sugar undertakings.

During the said period,   SDF loan of only one sugar mill namely M/s Khalilabad Sugar Mills Pvt. Ltd. Khalilabad, Distt- Sant Kabir, Nagar, Uttar Pradesh, has been restructured.

- (b): No Madam.
- (c ): As per the SDF Rules the Government of India  considers the proposals for restructuring of the SDF loans on the recommendation of the  Board for Industrial and Financial Reconstruction (BIFR) in case of private sector sugar undertakings and Committee  for  Rehabilitation (COR) in  case of cooperative sugar undertakings.  During the said period no such proposal has been received through

BIFR /COR.

- (d): State-wise closed sugar mills during last three sugar seasons i.e. 2013-14, 2014-15, 2015-16   and sick sugar mills is given in Annexure-I.

SDF  Rules  already  provide  for  grant  of  loan  to  the  new  /existing  sugar factories for various schemes to increase production as well as have provision for restructuring of SDF loan to revive  potentially viable sick sugar undertakings

- (e): Communications  have  been  received  from  individuals/firms  regarding  the problems faced by sugar industry/mills during last three years due to fall in sugar prices  resulting  in    financial  crisis  and      difficulties  in  the  payment  of  Fair  & Remunerative  Prices  (FRP). Requests have  been  made to announce some  relief package for sugar industry and rescheduling of SDF loans and other outstanding loans.
- 2.
- Government has taken the following measures in the last three years :
- (i)  Extended  financial  assistance  to  sugar  undertakings  under  SEFASU-2014 scheme   and  under soft loan scheme-2015;
- (ii)    Provided  financial  assistance  through  raw  sugar  export  incentive  scheme; Rs.425 crore was disbursed under the scheme.
- (iii)    Facilitated  supply  of  ethanol  under  Ethanol  Blended  with  Petrol  (EBP) programme by fixing remunerative price and waiving off excise duty on supply of ethanol during sugar season 2015-16 (up to 10 th  August, 2016).
- (iv)  A comprehensive performance based production subsidy was notified @ Rs. 4.50  per  quintal  of  cane  crushed  payable  to  farmers  against  their  cane  dues contingent on mill undertaking export and supplying of ethanol.

These  interventions  have  helped  in  reducing  the  cane  price  arrears  of farmers  for  sugar  season  2014-15  from  a  peak  of  Rs.  21,837  crore  to  Rs.  535 crore.  Similarly,  in respect  of  arrears  of sugar  season  2015-16, the  sugar mills have already cleared about 98.5% of their cane dues payable on FRP basis, which is significantly higher as compared to the  last few years.

****

## ANNEXURE  REFERRED  TO  IN  REPLY  TO  PART  (d)  OF  THE STARRED QUESTION NO. 3348 DUE FOR ANSWER ON 06.12.2016 IN THE LOK SABHA

## Statement showing State-wise closed sugar mills during last three sugar seasons i.e. 2013-14, 2014-15 & 2015-16 and sick sugar mills.

| Sl No   | State                | Sugar Season 2013-14      | Sugar Season 2014-15      | Sugar Season 2015-16      | No. of sick sugar mills ($)   |
|---------|----------------------|---------------------------|---------------------------|---------------------------|-------------------------------|
|         |                      | Closed no. of sugar mills | Closed no. of sugar mills | Closed no. of sugar mills |                               |
| 1       | Andhra Pradesh       | 9                         | 11                        | 14                        | 11                            |
| 2       | Assam                | 3                         | 3                         | 3                         | 0                             |
| 3       | Bihar                | 17                        | 17                        | 17                        | 1                             |
| 4       | Chhattisgarh         | 0                         | 0                         | 0                         | 0                             |
| 5       | Goa                  | 0                         | 0                         | 0                         | 1                             |
| 6       | Gujarat              | 7                         | 10                        | 8                         | 1                             |
| 7       | Haryana              | 2                         | 2                         | 2                         | 6                             |
| 8       | Karnataka            | 13                        | 12                        | 13                        | 17                            |
| 9       | Kerala               | 2                         | 2                         | 2                         | 0                             |
| 10      | Madhya Pradesh       | 7                         | 8                         | 8                         | 2                             |
| 11      | Maharashtra          | 68                        | 60                        | 67                        | 66                            |
| 12      | Nagaland             | 1                         | 1                         | 1                         | 0                             |
| 13      | Odisha               | 3                         | 5                         | 5                         | 2                             |
| 14      | Puducherry           | 0                         | 0                         | 1                         | 0                             |
| 15      | Punjab               | 8                         | 8                         | 8                         | 7                             |
| 16      | Rajasthan            | 2                         | 2                         | 2                         | 0                             |
| 17      | Tamilnadu            | 4                         | 3                         | 4                         | 2                             |
| 18      | Telangana            | 1                         | 1                         | 4                         | 0                             |
| 19      | Uttar Pradesh        | 39                        | 40                        | 41                        | 13                            |
| 20      | Uttranchal           | 1                         | 1                         | 2                         | 7                             |
| 21      | West Bengal          | 1                         | 2                         | 2                         | 0                             |
| 22      | Dadra Nagar & Haveli | 1                         | 1                         | 1                         | 0                             |
|         | Total                | 189                       | 189                       | 205                       | 136                           |