Lok Sabha Question No. 4798 (UNSTARRED), answered on 2019-07-23
Subject: Sugar Industries
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: Annasaheb Shankar Jolle

## MINISTRY  OF CONSUMER  AFFAIRS, FOOD & PUBLIG DISTRIBUTION

## GOVERNMEI{T OF INDIA DEPARTMENT OF FOOD AND PUBLIC DISTRIBUTION

## LOK SABHA UNSTARRED QUESTION NO. 4798 TO BE ANSWERED  ON 23.d JULY, 2O{9

## SUGAR INDUSTRIES

## 4798. SHRI ANNASAHEB SHANKAR JOLLE:

Will the Minister of GONSUMER AFFAIRS, FOOD At{D PUBLIC DISTRIBUTION  Jcstrdr rrrd, utf-u slk Tr+dfro  futr{ur  i+  be pteased  to state:

- (a)  whether the Government has taken/proposes  to take any action
- regarding improved policies  for sugar industries which is commerciatly beneficial  to the sugarcane farmers by considering  the fact that the country is one of the largest sugar producing countries and f,armers are major part of this industry; and
- (b) if so, the details thereof?

## ANSWER MINISTER OF STATE FOR MTNISTRY OF CONSUMER  AFFAIRS, FOOD & PUBLIC DISTRIBUTION (sHRr DANVE RAOSAHEB DADARAO)

(a)& (b):

Keeping in view the interest  of sugarcane farmers, the Gentral Government has replaced the concept of Statutory Minimum  Price (SMP) of sugarcane with that of Fair and Remunerative  Price (FRP) under which upfront margin for profit and risks is assured to farmers. Since, sugar season 2OO9-{O,  the Gentral Government  is fixing FRP of sugarcane on the basis of the recommendations  of the Gommission for Agricultural Gosts and Prices (GAGP)  after consultation with the all stake hotderc. Besides, various policy inten entions are undertaken by the Government from time to time to facilitate timely payment of cane price dues of farmers. Depressed sugar prices due to excess sugar production, has adversely affected the liquidity  position of the sugar mills resulting in accumulation of cane price arrears of farmers.  With a view to improve the liquadity  position of sugar mills enabling them to clear cane price arrears of  farmers, the  Government has  taken the  following  policy intervention/measures  in the recent past:

- (a) Fixed minimum selling price of sugar at Rs.29/kg  for sale at factory gate in domestic market, which has been enhanced to Rs. 3{/kg for sugar season 2Ot8-{9.
- (ai) Created buffer stock of 30 LMT for one year w.e.f. O1.O7.2O14 envisaging reimbursement  of carrying cost by the Government.
- (iii)  Extended Assistance  to sugar mills to offset the cost of cane @Rs.5.5o/quintal and @ Rs.{3.88/quintal of cane crushed  for sugar season 2017-18 and 2O{8-{9 respectavely;
- (iv)  Extended  Assistance  to  sugar mills for defraying  expenditure towards internal transport, freight, handling and other charges to facilitate  export of sugar from the country in sugar season  20{8-{9.
- (v) Remunerative  prices have been fixed separately for  ethanol produced from G-heavy, B-Heavy and cane  iuice  for supply under Ethanol Blended Petro! (EBP) Programme.
- (vi)  Extended financial assistance through banks to molasses  based stand alone distilleries and also to distilleries  attached with sugar mills for enhancement  and augmentation  of ethanol production capacity.
- (vii) Extended soft loans to sugar mitls through banks envisaging interest subvention by Governmenl @ 7o/o.