Lok Sabha Question No. 1111 (UNSTARRED), answered on 2016-11-22
Subject: Cash Subsidy for Sugarcane Growers
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: RAJESH KUMAR DIWAKAR

## GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE AND FARMERS WELFARE DEPARTMENT OF AGRICULTURE, COOPERATION AND FARMERS WELFARE

## LOK  SABHA

## UNSTARRED QUESTION NO.1111

TO BE ANSWERED ON THE  22 ND  NOVEMBER, 2016

## CASH SUBSIDY FOR SUGARCANE GROWERS

## 1111.     SHRI RAJESH KUMAR DIWAKER:

Will  the  Minister  of  AGRICULTURE  AND  FARMERS  WELFARE      ‡ãðŠãäÓã एवं  कसान कयाण ½ãâ¨ããè be pleased to state:

- (a) whether  the  Government  has  formulated  a  farm-policy  to  provide  direct  cash subsidy to sugarcane growers;
- (b) if  so,  the  details  thereof  and  the  time  by  which  the  above  policy  is  likely  to  be implemented; and
- (c) the approximate number of sugarcane growers likely to be benefited through this policy?

## ANSWER

## MINISTER OF  STATE IN THE  MINISTRY OF  AGRICULTURE AND  FARMERS  WELFARE

‡ãðŠãäÓã एवं  कसान  कयाण ½ãâ¨ããÊã¾ã  ½ãñâ  Àã·¾ã  ½ãâ¨ããè (SHRI  S.S. AHLUWALIA)

- (a) to (c): There is no such farm-policy to provide direct cash subsidy to sugarcane growers. However, in the last two years, Ministry of Consumer Affairs, Food and Public Distribution  has  taken  following  steps  to  improve  the  liquidity  position  of  sugar  mills enabling them to clear cane price arrears of farmers:
- (i) A Scheme for Soft loans to sugar mills to facilitate payment of cane dues of the farmers for the sugar season 2014-15 was notified on 23 rd June, 2015. The Government to bear interest burden upto 10% simple interest or actual rate of interest charged by the bank, whichever is less for maximum of one year by way of interest subvention. As per the modalities of the scheme the extent of the cane dues to be computed on the basis of Fair and Remunerative Price (FRP), is remitted into the accounts of farmers on behalf of  the  sugar  mills.  Under  the  scheme,  Rs.  4305  crore  has  been  disbursed.  This  has benefited more than 32 lakh farmers associated with 313 sugar mills.
- (ii) The Production Subsidy Scheme was notified on 02.12.2015 with a view to offset the  cost  of  cane  &  facilitate  timely  payment  of  cane  price  dues  of  farmers  for  sugar season 2015-16. The said subsidy is paid directly to the farmers on behalf of the mills and adjusted against the cane price payable due to the farmers against FRP including arrears relating to previous years. Subsequent balance, if any, shall be credited into the mill's account.

Consequent upon sugar prices reaching substantially higher levels than required for  operational  viability  of  the  sugar  industry,  the  production  subsidy  scheme  was withdrawn vide notification dated 19.05.2016.

Since the production subsidy scheme was withdrawn before time, the Government  has  decided  to  disburse  the  performance  based  production  subsidy  for cane  crushed  during  2015-16  sugar  season  till  the  tenancy  of  the  scheme  vide notification dated 12.09.2016.

Besides, Department of Agriculture, Cooperation & Farmers Welfare is implementing  Sugarcane  development  programme  under  National  Food  Security Mission  (NFSM)  in  13  major  sugarcane  growing  states  viz.,  Andhra  Pradesh,  Bihar, Gujarat, Haryana, Karnataka, Madhya Pradesh, Maharashtra, Odisha, Punjab, Telangana,  Tamil  Nadu,  Uttarakhand  &  Uttar  Pradesh  from  2014-15 with  an  aim for enhancing production  and  productivity.  Under  this  scheme,  thrust  has  been  given  on transfer of technology through frontline demonstrations and training in order to extend benefits to the farmers. Under the Scheme, assistance is given for Demonstration on intercropping and single bud chip technology with Sugarcane, Breeder seed production, production of tissue culture raised plantlets/ seedlings, strengthening/ establishment of bio  agent  and  tissue  culture  laboratory,  national  level  training  and  state  level  training through  the  State  Department  of  Agriculture,  Indian  Council  of  Agriculture  Research, State Agriculture University and other implementing agencies.

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