Lok Sabha Question No. 2070 (UNSTARRED), answered on 2020-03-03
Subject: Decline in Sugar Production
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: Girish Bhalchandra Bapat, Shobha Karandlaje

## GOVERNMENT OF INDIA

## MTNISTRY OF GONSUMER  AFFAIRS, FOOD &  pUBLtC  DTSTRIBUTTON DEPARTMENT OF FOOD AND PUBLIG DISTRTBUTION

## LOK SABHA UNSTARRED SUESTION  NO.2O7O TO BE ANSWERED  ON 3'd MARCH,2O2O

## DECLINE IN SUGAR PRODUCTION

2070.

SHRI GIRISH BHALCHANDRA  BAPAT: KUMARI SHOBHA KARANDLAJE:

Will the Minister of GONSUMER AFFAIRS, FOOD AND PUBLIC D I ST RI B U T I O N 5c8ltffr erFd, urf,a aik urffi++  furcsr d* Oe  p!  eased to srate:

- (a) whether it is a fact that sugar output is down 24 per cent in the current sugar season 2O19-2O, if so, the details thereof;

- (b)  whether the decline in sugar production is due to fal! in the production  of sugarcane  mainly in the major sugar producing  States of Maharashtra and Karnataka due to drought in some parts and heavy rains and floods in some other pafis of these States, if so, whether this would lead to sholtage of sugar and escalated  sugar prices in the coming months, if so, the details thereof;

- (c) whether the availability of sugar is sufficient  to meet the domestic consumption  of about 260 lakh MT and if so, the details thereof;

- (d) whether the sugar prices in the domestic market are expected  to remain stable due to decline in sugar production in the current season and the steps taken to increase the sugar production; and

- (e)  the steps being taken by the Government to protect the interests of sugar producers and sugarcane growers  in these States?

## ANSWER

MINISTER OF STATE FOR MTNISTRY OF CONSUMER  AFFAIRS,  FOOD &

PUBLIC DISTRIBUTION

(SHRI DANVE RAOSA}IEB DADARAO)

- (a): The sugar production in the current sugar season 2O{$2O is estimated to be about 273 lakh MT vis-a-vis 33{.30 lakh MT achieved in last sugar season 2O{8-{9 which is down &3r about 18o/o.

.2t-

(b) to (d): Yes sir. The decline in sugar production  is due to fall in the production of sugarcane mainty in the maior sugar producing States of Maharashtra  and Karnatakar  due to dlought in some  Patts  and heavt/ rains and floods in some other parts of these states.

However, with the cary over stock of about '145 lakh MT of previous sugar season and estimated  production of about 273 lakh MT in current sugar season 2O19-2O,  the availabilaty of sugar is sufficaent  to meet the domestic consumption of about 260 lakh illT. ln view of sufficient availability of sugar in the  countryr the sugar prices in the domestic market are expected to remain stable.

(e): tn view of excess domestic  production of sugar in the country in  sugar seasons 2O17-1A  &  2Ol8'{9 and anticipation  of  excess ayaalability of  sugar in  2O{9'2O sugar season alsor the  Gentral Government took following measures  to improve liquidity position of sugar mills thereby enabling them to ctear cane price dues of farmerc:

## SUGAR SEASON 201744

- (i)  Fixed a minimum setling price (MSP) of sugar at Rs'29/kg w'e'f' 07.06.2018  which was revised to Rs. 31/kg w.e.t. 14'02'2019'
- (ii) Extended Assistance to sugar mills @Rs.5.5o/quintal  of cane crushed for sugar season 2O17'tA to offset the cost of cane amount'ng  to
- about Rs.43O crore.
- (iii) Greated buffer stock of 3o LMT in sugar season 2O17-1A for which Government is reimbursing carrying cost of Rs.7EO crore towards
- maintenance  of buffer stock.

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## SUGAR SEASON 2O1E-{ 9

- (i)  Extended Assistance to  sugar mills @Rs.{3.88/quintal  of  cane crushed for sugar season 2Ol8-19 to  offset the cost of cane amounting to about RS.3OOO  crore.
- (ii) Extended Assistance to  sugar mills for  defraying expenditure towards internal transport, freightr handling and other charges to facilitate export of sugar from the country in sugar season 2O{8't9 amounting to about Rs. 7OO crore.
- (iii) Extended soft toans amounting to Rs 74O2 crore to sugar mills through banksr lot  which Government would bear interest subvention  of about Rs 518 crore @ 7"/" lot one year.

## SUGAR SEASON 2 19-20

- (i) Greated buffer stock of 4O LtlT of sugar for a period of one year from {'r August, 2O{9 to 3{"r July, 2O2O lot which Govemment is reimbursing catrying cost of Rs.{674 crore towalds maintenance  of buffer stock.
- (ii) Providing assistance to sugar mills @ Rs {O448IMT to facilitate export of sugar for expenses  on export of 60 LMT of sugar in sugar season 2O19-2O for which an estimated expenditure of Rs 6288 Gr would be borne by the Government.
- (iii) The Government  has allovued produetion of ethanol from sugar and sugar slmrp for  current ethanol supply year 2O19'2O (Decemberr2o{  9 - Novemberr2o2o) and fixed the remunerative  ex' mill price of ethanol dedved from G-heavy molasses @ Rs. 43.7511iIf:e,  from B-heaw molasses  @ Rs. 54.271 litre and @ Rs. 59.48/titre for the ethanol derived from sugarcane  iuice/  sugar/ sugar syrup.