Lok Sabha Question No. 1591 (UNSTARRED), answered on 2017-07-25
Subject: Price of Sugarcane
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: SANGANNA AMARAPPA KARADI, MANSUKHBHAI DHANJIBHAI VASAVA, ADVOCATE NARENDRA KESHAV SAWAIKAR

## MINISTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION

## GOVERNMENT OF INDIA DEPARTMENT OF FOOD AND PUBLIC DISTRIBUTION

## LOK SABHA

UNSTARRED QUESTION NO. 1591

TO BE ANSWERED ON 25 th  JULY, 2017

1591.   SHRI SANGANNA AMARAPPA: SHRI MANSUKHBHAI DHANJIBHAI VASAVA: ADV. NARENDRA KESHAV SAWAIKAR:

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 details of Sugar production in India during the last three years;
- (b) whether it is a fact that sugar production in the country have shown a declining trend, if so, the details thereof along with the reasons for the fall in sugar production and the details of the measures taken by the Government to ensure availability of sugar at reasonable price;
- (c) whether there is a demand-supply gap for sugar in the country, if so, the steps taken by the Government to fulfil the demand-supply gap;
- (d) whether the price of 'sugarcane' has increased in the country for the farmers  in  the  recent  months,  if  so,  the  details  thereof  along  with  factors contributing to the rise in the prices;
- (e) whether an estimate of production cost of sugarcane has not been made  during  the  last  three  years,  if  so,  the  response  of  the  Government thereto; and
- (f)  the  rules  put  in  place  for  making  an  estimate  of  production  cost  of sugarcane and the reasons for not following these rules?

## A N S W E R

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

- (a) Sugar  production  in  the  country  during  the  last  three  sugar  seasons (October-September) has been  as under:-

| Sugar Season   |   Sugar Production (in Lakh Tons) |
|----------------|-----------------------------------|
| 2013-14        |                            245.54 |
| 2014-15        |                            284.63 |
| 2015-16        |                            251.21 |

- (b) & (c): The sugar production depends upon many factors, viz., sugarcane  production,  drawl  rate,  sugar  recovery  rate,  duration  of  the season, etc. Production of sugar in the country has shown a declining trend since sugar season 2014-15 due to reduction of sugarcane production mainly on  account  of  drought/delayed  monsoon  in  some  of  the  major  sugar producing states viz. Maharashtra, Karnataka, Andhra Pradesh, Gujarat and Tamil Nadu. With carry-over stock of 77 Lakh MT and estimated production of about 203 lakh MT in the current sugar season 2016-17, the total availability of  sugar  is  estimated  to  be  sufficient  to  meet  estimated  consumption requirement of 244 Lakh MT. However, in order to remove  regional production imbalances and to ensure availability of sugar at reasonable price in the country, the Government has allowed duty free import of five lakh MT of  raw  sugar  to  sugar  mills  for  processing  into  white/refined  sugar  and making  available  for  sale  in  domestic  market  during  the  current  sugar season.
- (d): The  Fair  and  Remunerative  Price  (FRP)  of  sugarcane  for  the  next sugar season 2017-18 has been fixed by the Central Government at Rs. 255 per quintal linked to a basic recovery rate of 9.5%. Further, for every 0.1% increase in recovery rate the FRP will be increased by Rs. 2.68 per quintal. The increase in price of sugarcane over last season was due to factors like rising trend in sugar price, increase in input cost etc.
- (e) & (f): Commission for Agricultural Costs and Prices (CACP) recommends FRP of sugarcane every sugar season on the basis of estimated production  cost  of  sugarcane.  The  estimates  of  cost  of  production  are provided to CACP by the Directorate of Economics and Statistics, Ministry of Agriculture  under  the  Comprehensive  Scheme  for  studying  the  cost  of production of principal crops in India.  On the basis of the recommendations of  the  CACP  and  after  consultations  with  State  Governments  and  other stakeholders, the Central Government determines FRP of sugarcane for every sugar season.

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