Lok Sabha Question No. 155 (UNSTARRED), answered on 2018-12-11
Subject: MSP for Sugarcane
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: NALIN KUMAR KATEEL, DODDAALAHALLI KEMPEGOWDA SURESH

## MINISTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION

## GOVERNMENT OF INDIA DEPARTMENT OF FOOD AND PUBLIC DISTRIBUTION

## LOK SABHA UNSTARRED QUESTION NO. 155

## TO BE ANSWERED ON 11 DECEMBER, 2018

## MSP FOR SUGARCANE

155. SHRI NALIN KUMAR KATEEL: SHRI D.K. SURESH

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  the  Union  Government  is  aware  that  hundreds  of  farmers, including the womenfolk, staged a protest in Karnataka demanding minimum support price for sugarcane and if so, the details thereof;
- (b) whether it has also come to the notice of the Union Government that sugarcane farmers are not getting their arrears from the mill owners;
- (c) if so, whether the Government has taken any measures to ensure that sugarcane arrears are settled by the mill owners;
- (d) whether  the  Union  Government  has  taken  note  that  farmers  are discouraged from growing sugarcane , it was no longer remunerative as mill owners were unwilling to pay more and settle the arrears; and
- (e) if so, whether the Government has taken any measures to ensure that sugarcane  farmers  are  provided  MSP  for  their produce  and  they  are encouraged by taking steps to settle the arrears from the mill owners 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): In  Belagavi  and  Bagalkot  district  of  Karnataka,  sugarcane  farmers were involved in protest demanding the cane price payment over and above the Fair and Remunerative Price (FRP) for the sugar season 2017-18.

- (b)  &  (c):  Depressed  sugar  price  due  to  excess  sugar  production  during previous sugar season 2017-18 has adversely affected the financial health of sugar mills resulting accumulation of cane price arrears of farmers  which peaked at Rs. 14538 cr on the basis of Fair and Remunerative Price (FRP) and Rs.  23232  cr  on  State  Advised  Price  (SAP)  basis  in  the  last  week  of  May, 2018 on all India basis. However, with a view to improve the liquidity position of  sugar  mills  enabling  them  to  clear    cane  price  arrears  of  farmers,  the Government has taken the following measures during last few months:-
- (i) In  order  to  prevent  cash  loss  and  to  facilitate  sugar  mills  to  clear cane dues of farmers in time, the Government has fixed a minimum selling price of sugar at Rs.29/kg for sale at factory gate in domestic market, below which no sugar mill can sell sugar.
- (ii) Extending Assistance to sugar mills @Rs.5.50/quintal of cane crushed  for  sugar  season  2017-18  to  offset  the  cost  of  cane amounting to about Rs.1540 crore;
- (iii) Created buffer stock of 30 LMT in sugar season 2017-18 for which Government will reimburse carrying cost of Rs.1175 crore towards maintenance of buffer stock;
- (iv) Extending soft loans of Rs. 6139 crore through banks to the mills for setting up new distilleries and installation of incineration boilers to augment  ethanol  production  capacity    for  which  Government  will bear interest subvention of Rs. 1332 crore;
- (v) Extending  Assistance  to  sugar  mills @Rs.13.88/quintal of  cane crushed  for  sugar  season  2018-19  to  offset  the  cost  of  cane amounting to about Rs.4163 crore;
- (vi) Extending  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 2018-19 amounting to about Rs. 1375 crore.
- (vii) Government  has  also  notified    new  National  Policy  on  Bio-Fuels, 2018 under which  sugarcane juice has been allowed for production of ethanol. Further, the Government has fixed remunerative price of ethanol produced from C-Heavy molasses and B-Heavy molasses/sugarcane juice separately for supply under Ethanol Blended Petrol (EBP) Programme during ethanol season 2018-19.

As a result of various measures taken by the Government, the cane price arrears for the sugar season 2017-18 have come down to Rs. 1924 cr and Rs.5465 cr on FRP and SAP basis respectively on all India basis.

- (d) & (e):  No such report has been brought to the notice of Government of India.  In  the  interest  of  sugarcane  farmers,  the  Government  fixes  Fair  and Remunerative Price of sugarcane for each sugar season.

As  per  the  provisions  of  Sugarcane  (Control)Order,1966,  the  sugar mills are required to purchase sugarcane at the price fixed by Government.

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