Lok Sabha Question No. 1794 (UNSTARRED), answered on 2018-03-06
Subject: Loan to Sugar Mills
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: BHARATENDRA SINGH

## MINISTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION

## GOVERNMENT OF INDIA DEPARTMENT OF FOOD AND PUBLIC DISTRIBUTION

LOK SABHA UNSTARRED QUESTION NO. 1794

TO BE ANSWERED ON 06 TH  MARCH, 2018

## LOAN TO SUGAR MILLS

## 1794.   KUNWAR BHARATENDRA:

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

- (a) whether  the  Government  can  clarify  the  quantum  of  debt  owed  by sugar mills to sugarcane farmers, State-/UT- wise;
- (b) the steps being taken to ensure that the sugarcane farmers received their dues;
- (c) whether  the  Government  can  provide  the  details  of  the  number  of sugar  mills  that  have  been  declared  insolvent,  owing  to  non-repayment  of loans;
- (d) whether the Government is taking any steps to restore the financial health of these sugar mills; and
- (e) if so, the details thereof?

## A N S W E R

MINISTER OF STATE FOR  CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION (SHRI C. R. CHAUDHARY)

- (a): As per the information received from the office of Cane Commissioners  of  the  sugar  producing  States/UTs,  a  statement  showing State-/UT-wise quantum of debt owed by sugar mills to sugarcane farmers, as on 31.01.2018, is at  ANNEXURE.

(b): Payment  of sugarcane dues to farmers is an ongoing process. The Sugarcane (Control) Order, 1966 stipulates payment of cane price within 14  days  of  supply,  failing  which  interest  at  the  rate  of  15%  per  annum  on amount due for the delayed period beyond 14 days is payable. The Powers to enforce  the  provisions  of  Sugarcane  (Control)  Order,  1966  with  regard  to payment of cane dues of farmers is mainly vested with the State Governments as they have necessary field formation for its implementation.   The  State  Governments  have  issued   notices  to  all  the defaulting  sugar  mills  for  clearing  the  balance  cane  price  dues.  State Governments  of Uttar Pradesh, Karnataka  and  Madhya  Pradesh  have reported to have issued Recovery Certificates also to defaulting sugar mills. Central Government has taken the following measures in the past to improve financial health of the sugar industry enabling them to clear cane dues of the farmers:

- (i) Extended financial assistance to the sugar mills through SEFASU and Soft loan scheme.
- (ii) Provided incentive on export of raw sugar.
- (iii) Provided performance based production subsidy.
- (iv) Fixed remunerative price of ethanol for supply under EBP.

During the current season, in order to stabilise domestic sugar price and enable payment of farmers sugarcane dues, import duty on sugar has been enhanced  from  50%  to  100%  and  stock  limit  on  sugar  mills  has  been imposed.

- (c):   The  State  Governments  of  major  sugar  producing  states   informed that  no sugar mill have been declared as insolvent.
- (d) & (e):  Does not arise.

****

## ANNEXURE

ANNEXURE  REFERRED  TO  IN  REPLY  TO PART (a) OF THE UNSTARRED QUESTION NO.1794 DUE FOR ANSWER ON 06.03.2018 IN THE LOK SABHA.

## STATEMENT  SHOWING STATE/UT  WISE   CANE  PRICE  ARREARS  FOR  SUGAR SEASON 2017-18,2016-17,2015-16 & EARLIER SUGAR SEASON

(Rs. in crores)

| (As on 31.01.2018)   | (As on 31.01.2018)   | (As on 31.01.2018)         | (As on 31.01.2018)         | (As on 31.01.2018)                         | (As on 31.01.2018)       |
|----------------------|----------------------|----------------------------|----------------------------|--------------------------------------------|--------------------------|
| SL. NO.              | STATE                | CANE PRICE ARREARS 2017-18 | CANE PRICE ARREARS 2016-17 | CANE PRICE ARREARS FOR 2015-16 AND EARLIER | TOTAL CANE PRICE ARREARS |
|                      | 1                    | 2                          | 3                          | 4                                          | 5                        |
| 1                    | PUNJAB               | 433.79                     | 45.06                      | 0.00                                       | 478.85                   |
| 2                    | HARYANA              | 416.10                     | 0.00                       | 0.00                                       | 416.10                   |
| 3                    | RAJASTHAN            | 0.00                       | 0.00                       | 0.00                                       | 0.00                     |
| 4                    | UTTAR PRADESH        | 5552.76                    | 394.36                     | 131.39                                     | 6078.51                  |
| 5                    | UTTARAKHAND          | 426.09                     | 0.00                       | 24.92                                      | 451.01                   |
| 6                    | MADHYA PRADESH       | 266.83                     | 6.49                       | 17.43                                      | 290.75                   |
| 7                    | CHHATISGARH          | 28.82                      | 0.05                       | 1.01                                       | 29.88                    |
| 8                    | GUJARAT              | 427.45                     | 20.97                      | 18.18                                      | 466.60                   |
| 9                    | MAHARASHTRA          | 2636.03                    | 2.62                       | 236.23                                     | 2874.88                  |
| 10                   | BIHAR                | 314.29                     | 6.04                       | 39.32                                      | 359.65                   |
| 11                   | ASSAM                | 0.00                       | 0.00                       | 0.00                                       | 0.00                     |
| 12                   | ANDHRA PRADESH       | 230.87                     | 0.00                       | 20.50                                      | 251.37                   |
| 13                   | KARNATAKA            | 2713.65                    | 0.57                       | 44.12                                      | 2758.34                  |
| 14                   | TAMIL NADU           | 303.27                     | 414.18                     | 1138.12                                    | 1855.57                  |
| 15                   | KERALA               | 0.00                       | 0.00                       | 0.00                                       | 0.00                     |
| 16                   | ODISHA               | 49.81                      | 1.93                       | 2.94                                       | 54.68                    |
| 17                   | WEST BENGAL          | 0.00                       | 0.04                       | 0.43                                       | 0.47                     |
| 18                   | NAGALAND             | 0.00                       | 0.00                       | 0.00                                       | 0.00                     |
| 19                   | PUDUCHERRY           | 0.00                       | 10.59                      | 11.53                                      | 22.12                    |
| 20                   | GOA                  | 29.53                      | 0.00                       | 0.00                                       | 29.53                    |
| 21                   | TELANGANA            | 102.32                     | 0.00                       | 0.00                                       | 102.32                   |
|                      | TOTAL                | 13931.61                   | 902.90                     | 1686.12                                    | 16520.63                 |

***