Lok Sabha Question No. 5084 (UNSTARRED), answered on 2018-03-27
Subject: Dues of Sugar Mills
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: ANWHAR RAAJHAA, KUNWAR HARIBANSH SINGH, NARANBHAI KACHHADIA, SUDHEER GUPTA, GAJANAN CHANDRAKANT KIRTIKAR, VIJAY KUMAR S.R., BIDYUT BARAN MAHATO, T. RADHAKRISHNAN, SUNIL BALIRAM GAIKWAD

## GOVERNMENT OF INDIA

## MINISTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION

## DEPARTMENT OF FOOD AND PUBLIC DISTRIBUTION

## LOK SABHA

UNSTARRED QUESTION NO. 5084

TO BE ANSWERED ON 27 TH  MARCH, 2018

## DUES OF SUGAR MILLS

5084.   SHRI A. ANWHAR RAAJHAA:

KUNWAR HARIBANSH SINGH:

SHRI NARANBHAI KACHHADIYA:

SHRI SUDHEER GUPTA:

SHRI GAJANAN KIRTIKAR:

SHRI S.R. VIJAYAKUMAR:

SHRI BIDYUT BARAN MAHATO:

SHRI T. RADHAKRISHNAN:

DR. SUNIL BALIRAM GAIKWAD:

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  as  per  Indian  Sugar  Mills  Association  (ISMA),  dues  to sugarcane farmers from sugar mills are piling up drastically till date;
- (b) if so, the details thereof and the reasons for the same, State/UT-wise;
- (c) whether  the  Government  has  conducted  any  enquiry  in  this  regard and if so, the details thereof;
- (d) the corrective measures taken by the Government to ensure timely payment to sugarcane farmers for their produce;
- (e) whether the Committee on sugar/sugarcane sector has made observations/recommendations  regarding  profitability  of  mills,  clearance  of dues and share of farmers in profits earned by the mills; and
- (f) if so, the details thereof and the action taken by the Government so far?

## A N S W E R

MINISTER OF STATE FOR  CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION

(SHRI C. R. CHAUDHARY)

(a),(b)&(c):    Due  to  higher  production  estimates  during  the  current  sugar season 2017-18, the downtrend of sugar price has been witnessed which is affecting the liquidity position of the mills and timely clearance of cane dues of farmers. Payment of cane dues to farmers is an on going process. As on 21.03.2018,  out  of  total  cane  dues  payable  of  Rs.55,553  crore  for  2017-18 Sugar Season, an amount of Rs.41,654 crore has been cleared and Rs.13,899

crore is pending. The state-wise details of the same are at Annexure.

(d): During the current season, in order to stabilize domestic sugar price and improve liquidity of sugar mills  enabling them to clear cane dues of the farmers, import duty on sugar has been enhanced from 50% to 100%; stock limit  on  sugar mills has been imposed  for two months and export duty on sugar has been withdrawn.

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.

- (e)& (f): The Dr. C. Rangarajan Committee report on Regulation of sugar sector  has,  inter-alia,  recommended  that  there  should  be  a  sharing  of  the revenues/value  created  in  the  sugarcane  value  chain  between  the  farmers and  the  millers  in  a  fair  and  equitable  manner.  As  suggested  by  the Committee under Revenue Sharing Formula (RSF) for cane price payments, 75% of sugar value or 70% the value of sugar and its by-products should be paid  to  the  farmers  towards  sugarcane  price.  However,  farmers  should  be ensured payment of at least Fair and Remunerative Price (FRP) when cane price share under RSF is less than FRP.

The Central Government has considered recommendations of the Committee  and  forwarded  it  to  the  State  Governments  for  adoption  and implementation, as considered appropriate by them.

***

## ANNEXURE

ANNEXURE REFERRED TO IN REPLY TO PARTS (a) (b) &(c) OF THE UNSTARRED

| STATEMENT SHOWING CANE PRICE ARREAR FOR 2017-18 SUGAR SEASON.   | STATEMENT SHOWING CANE PRICE ARREAR FOR 2017-18 SUGAR SEASON.   | STATEMENT SHOWING CANE PRICE ARREAR FOR 2017-18 SUGAR SEASON.   |
|-----------------------------------------------------------------|-----------------------------------------------------------------|-----------------------------------------------------------------|
|                                                                 | Rs. in crores (Position                                         | as on 21.03.2018)                                               |
|                                                                 | 1                                                               | 2                                                               |
| 1                                                               | PUNJAB                                                          | 524                                                             |
| 2                                                               | HARYANA                                                         | 488                                                             |
| 3                                                               | UTTAR PRADESH                                                   | 5136                                                            |
| 4                                                               | UTTARAKHAND                                                     | 530                                                             |
| 5                                                               | MADHYA PRADESH                                                  | 318                                                             |
| 6                                                               | CHHATISGARH                                                     | 26                                                              |
| 7                                                               | GUJARAT                                                         | 476                                                             |
| 8                                                               | MAHARASHTRA                                                     | 2348                                                            |
| 9                                                               | BIHAR                                                           | 528                                                             |
| 10                                                              | ANDHRA PRADESH                                                  | 304                                                             |
| 11                                                              | KARNATAKA                                                       | 2539                                                            |
| 12                                                              | TAMIL NADU                                                      | 459                                                             |
| 13                                                              | ODISHA                                                          | 54                                                              |
| 14                                                              | PUDUCHERRY                                                      | 0                                                               |
| 15                                                              | GOA                                                             | 67                                                              |
| 16                                                              | TELANGANA                                                       | 102                                                             |
|                                                                 | TOTAL                                                           | 13899                                                           |

QUESTION NO.5084 DUE FOR ANSWER ON 27.03.2018 IN THE LOK SABHA