Lok Sabha Question No. 4360 (UNSTARRED), answered on 2017-03-28
Subject: Sugarcane Arrears
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: TARIQ ANWAR, PONGULETI SRINIVASA REDDY, C.S. PUTTARAJU, K. MARAGATHAM

## GOVERNMENT OF INDIA MINISTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION

## DEPARTMENT OF FOOD AND PUBLIC DISTRIBUTION

## LOK SABHA UNSTARRED QUESTION NO. 4360 TO BE ANSWERED ON 28 th  MARCH, 2017 SUGARCANE ARREARS

4360. SHRI TARIQ ANWAR:

SHRI PONGULETI SRINIVASA REDDY:

SHRI C.S. PUTTA RAJU:

SHRIMATI K. MARAGATHAM:

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 amount of debt/dues sugar mills owe to farmers as of 1st January, 2017 and the measures being taken by the Government to pay this due amount;
- (b) whether  the  sugarcane  farmers  in  some  States  are  yet  to  get  arrears from sugar mills, if so, the details thereof, State-wise since the last three years;
- (c) whether private and corporate owned mills top the list which are yet to pay the farmers the full price, if so, the details thereof and the reasons  therefor;
- (d) whether  sugar  mills  have  paid  Rs.  48,674  crore  to  sugarcane  farmers and owe about Rs. 4225 crore for the marketing year ending September, 2016, if so, the details thereof; and
- (e) whether the cane price payable and arrears have been calculated on the basis of fair and remunerative price which is minimum price fixed by the Centre to be paid to farmers and 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)  &  (b):  As  on  01.01.2017,  an  amount  of  Rs.  11,283.42  crores  of  dues  to sugarcane  farmers  was  outstanding  against  the  sugar  mills.  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  for  enforcing  this provision are delegated and vested with the State Governments/UT Administrations who have necessary field formations for implementation of the said  provision.  The  Central  Government  advices  the  State  Governments  from time to time to ensure timely payment to the cane growers and to take strict action  against  the  defaulting  sugar  mills  for  nonpayment  of  cane  price  dues. Statement showing State-wise cane price dues of sugar mills for current year 2016-17 and last three sugar seasons as on 01.01.2017 is at Annexure-I.

- (c): Yes Madam, as on 01.01.2017, cane price dues of sugar season 2016-17 of private  and corporate owned  sugar  mills is highest  as  compared  to Cooperative  and  Public  Sector  owned  sugar  mills.  The  details  of  outstanding cane  price  dues  of  private,  cooperative  and  public  owned  sugar  mills  are  Rs. 6107.33  crores,  2407.36  crores  and  162.29  crores  respectively.  Current  sugar season 2016-17 is still going on and payment of sugarcane dues to farmers is an ongoing process. The dues position of farmers changes continuously on account of fresh supplies received and payment made for previous supplies.
- (d): No Madam, as on 30.09.2016, sugar mills have paid Rs.56,992.92 crores to  sugarcane  farmers  and  owe  about  Rs.3,289.45  crores  for  the  sugar  season 2015-16.  However,  as  on  01.01.2017,  sugarcane  dues  of  farmers  for  2015-16 have come down to Rs. 1489.47 crores.
- (e): Statement showing State-wise cane price payable and arrears calculated  on  the  basis  of  Fair  and  Remunerative  Price  (FRP)  for  the  current sugar season 2016-17 as on 01.01.2017 is at Annexure-II.

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ANNEXURE-I ANNEXURE  REFERRED  TO  IN REPLY TO PARTS (A)& (B) OF THE UNSTARRED QUESTION NO. 4360 DUE  FOR ANSWER ON 28.03.2017 IN LOK SABHA. STATEMENT SHOWING  CANE PRICE ARREARS FOR 2016-17,2015-16,2014-15 &

## EARLIER SUGAR SEASONS (position as on 01.01.2017)

| SL. NO.   | STATE          |   CANE PRICE ARREARS 2016-17 |   CANE PRICE ARREARS 2015-16 |   CANE PRICE ARREARS FOR 2014-15 &EARLIER |   TOTAL CANE PRICE ARREARS |
|-----------|----------------|------------------------------|------------------------------|-------------------------------------------|----------------------------|
| 1         | PUNJAB         |                       256.62 |                         0    |                                      0    |                     256.62 |
| 2         | HARYANA        |                       243.92 |                         0    |                                      0    |                     243.92 |
| 3         | UTTAR PRADESH  |                      4237.38 |                       599.96 |                                    153.61 |                    4990.95 |
| 4         | UTTARAKHAND    |                       227.22 |                        47.43 |                                     24.92 |                     299.57 |
| 5         | MADHYA PRADESH |                       171.84 |                         4.04 |                                     13.39 |                     189.27 |
| 6         | CHHATISGARH    |                        24.14 |                         1.01 |                                      0    |                      25.15 |
| 7         | GUJARAT        |                       349.17 |                        15.09 |                                     13.46 |                     377.72 |
| 8         | MAHARASHTRA    |                       829.65 |                        70.82 |                                    208.99 |                    1109.46 |
| 9         | BIHAR          |                       191.58 |                         1.97 |                                     41.9  |                     235.45 |
| 10        | ANDHRA PRADESH |                       194.12 |                        33.43 |                                     15.48 |                     243.03 |
| 11        | KARNATAKA      |                      1410.4  |                        27.62 |                                     86.07 |                    1524.09 |
| 12        | TAMIL NADU     |                       427.72 |                       677.22 |                                    550.3  |                    1655.24 |
| 13        | KERALA         |                         0    |                         0    |                                      0    |                       0    |
| 14        | ODISHA         |                        13.31 |                         0    |                                      2.94 |                      16.25 |
| 15        | WEST BENGAL    |                         0    |                         0    |                                      1.45 |                       1.45 |
| 16        | PUDUCHERRY     |                         0    |                         8.43 |                                      4.47 |                      12.9  |
| 17        | TELANGANA      |                        99.9  |                         2.45 |                                      0    |                     102.35 |
|           | TOTAL          |                      8676.97 |                      1489.47 |                                   1116.98 |                   11283.4  |

(Rs. in crores)

Note:- Cane Price Arrears on State Advised Price (SAP) pertaining to 5 State viz., U.P, Uttarakhand,  Punjab, Haryana, Tamil Nadu rest are on Fair Remunerative Price (FRP) basis.

****

## ANNEXURE-II

## ANNEXURE  REFERRED  TO  IN  REPLY  TO  PARTS  (E)  OF  THE  UNSTARRED QUESTION NO. 4360 DUE FOR ANSWER ON 28.03.2017 IN LOK SABHA.

STATEMENT  SHOWING  STATE-WISE  CANE  PRICE  PAYABLE  AND  ARREARS CALCULATED ON THE BASIS OF FAIR AND REMUNERATIVE PRICE (FRP) FOR THE CURRENT SUGAR SEASON 2016-17

(AS ON 01.01.2017) (Rs. in crores)

| S.No.   | Name of the State   |   Sugarcane dues Payable on FRP basis |   Sugarcane dues FRP basis |
|---------|---------------------|---------------------------------------|----------------------------|
| 1.      | Bihar               |                                453.86 |                     191.58 |
| 2.      | Haryana             |                                340.08 |                     231.81 |
| 3.      | Punjab              |                                380.21 |                     142.13 |
| 4.      | Uttrakhand          |                                256.01 |                     138.73 |
| 5.      | Uttar Pradesh       |                               6561.71 |                    1914.56 |
| 6.      | Andhra Pradesh      |                                510.03 |                     194.12 |
| 7.      | Telangana           |                                165.52 |                      99.9  |
| 8.      | Gujarat             |                                620.96 |                     349.17 |
| 9.      | Maharashtra         |                               3805.63 |                     829.65 |
| 10.     | Karnataka           |                               4025.95 |                    1410.4  |
| 11.     | Tamil Nadu          |                                556.6  |                     318.64 |
| 12.     | Puducherry          |                                  0    |                       0    |
| 13.     | Chhattisgarh        |                                 24.14 |                      24.14 |
| 14.     | Odisha              |                                 31.18 |                      13.31 |
| 15.     | Madhya Pradesh      |                                359.98 |                     171.84 |
| 16.     | Goa                 |                                  0    |                       0    |
| 17.     | West Bengal         |                                  0    |                       0    |
|         | Total               |                              18091.9  |                    6029.98 |