Lok Sabha Question No. 148 (STARRED), answered on 2019-07-02
Subject: Dues Owed to Sugarcane Farmers
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: Ritesh Pandey

## GOVERNMENT OF INDIA

## MINISTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION DEPARTMENT OF FOOD AND PUBLIC DISTRIBUTION

LOK SABHA STARRED QUESTION NO. 148 TO BE ANSWERED ON 2 nd  JULY, 2019

## DUES OWED TO SUGARCANE FARMERS

*148. SHRI RITESH PANDEY:

Will  the  Minister  of  CONSUMER  AFFAIRS,  FOOD  AND  PUBLIC DISTRIBUTION उपभोक्ता त मल , ाखतद्ा औा तावर्ज�ाका्औता  मंा be  pleased  to state:

(a) the  details  of  dues  owed  to  sugarcane  farmers  by  sugarcane  mills, State-wise;

(b) the  measures taken and proposed to be taken to relieve sugarcane farmers of financial distress due to unpaid dues;

(c) the measures  sought  by  the Ministry to hold accountable  the defaulters of dues owed to sugarcane farmers; and

(d) the measures taken and planned to diversify sugarcane farming away from sugar production and into other sugar-based production?

A N S W E R MINISTER OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION (SHRI RAMVILAS PASWAN)

(a) to (d):   A statement is laid on the Table of the House.

****

STATEMENT  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  TO  (d)  OF  THE STARRED QUESTION NO. *148 DUE FOR ANSWER ON 02.07.2019 IN THE LOK SABHA

(a)to(d): The State-wise details of cane price dues of sugarcane farmers during current sugar season 2018-19 and last sugar season 2017-18, as on 25.06.2019, is at Annexure.

With a view to improve the liquidity position of sugar mills enabling them  to  clear    cane  price  dues  of  farmers,  the  Government  has  taken following measures in sugar seasons 2017-18 & 2018-19:

- (i) Fixing a Minimum Selling Price (MSP) of sugar w.e.f 07.06.2018 at Rs.29/kg for sale at factory gate in domestic market, below which no sugar mill can sell  sugar.    MSP  has  further  been  increased  to  Rs.  31/Kg.  w.e.f.    14 th February, 2019.
- (ii) Extending  Assistance  to  sugar  mills  to  offset  the  cost  of  cane  in  sugar seasons 2017-18 and 2018-19.
- (iii) Extending  assistance  to  sugar  mills  by  reimbursing  carrying  cost  towards maintenance of buffer stock of 30 LMT of sugar.
- (iv) 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.
- (v) Extending  soft  loans  to  sugar  mills  through  banks  for  which  Government would  bear  interest  subvention  @  7%  for  one  year  to  clear  cane  price arrears.

Under the schemes enumerated in para (ii) to (v) above, it has been provided  that  funds  released  to  sugar  mills  will  be  directly  credited  to farmer's  accounts  on  behalf  of  the  sugar  mills  against  their  cane  price dues.

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  to  enforce  the  provisions  of  Sugarcane  (Control) Order, 1966 with regard to payment of cane dues of farmers is vested with the State Governments. The Central Government from time to time issues advisory  to  the  State  Governments  for  ensuring  clearance  of  cane  price arrears  of  farmers  and  to  take  action  against  defaulting  mills  and  also reviews the position of cane dues through meetings and video conferences with State Governments.

With a view to diversify sugarcane  farming away  from sugar production, Government is promoting production of ethanol from sugarcane. To divert excess sugarcane for manufacturing ethanol, Government has for the first time allowed production of ethanol from BHeavy molasses as well as from sugarcane juice. Further, Government has also 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.

***

## ANNEXURE

ANNEXURE REFERRED IN REPLY TO PART (a) TO (d) OF THE STARRED QUESTION NO. 148  DUE FOR ANSWERED ON 02.07.2019 IN THE LOK SABHA.

(RS. IN CRORES)

| STATEMENT SHOWING STATE- WISE DUES OF SUGAR CANE FARMERS IN THE CURRENT SUGAR SEASON & LAST SUGAR SEASON (AS ON   | STATEMENT SHOWING STATE- WISE DUES OF SUGAR CANE FARMERS IN THE CURRENT SUGAR SEASON & LAST SUGAR SEASON (AS ON   | STATEMENT SHOWING STATE- WISE DUES OF SUGAR CANE FARMERS IN THE CURRENT SUGAR SEASON & LAST SUGAR SEASON (AS ON   | STATEMENT SHOWING STATE- WISE DUES OF SUGAR CANE FARMERS IN THE CURRENT SUGAR SEASON & LAST SUGAR SEASON (AS ON   | STATEMENT SHOWING STATE- WISE DUES OF SUGAR CANE FARMERS IN THE CURRENT SUGAR SEASON & LAST SUGAR SEASON (AS ON   |
|-------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------|
| S.No                                                                                                              | Name of State                                                                                                     | 2018-19                                                                                                           | 2017-18                                                                                                           | Total                                                                                                             |
| 1                                                                                                                 | Bihar                                                                                                             | 923                                                                                                               | 26                                                                                                                | 949                                                                                                               |
| 2                                                                                                                 | Haryana                                                                                                           | 293                                                                                                               | 0                                                                                                                 | 293                                                                                                               |
| 3                                                                                                                 | Punjab                                                                                                            | 925                                                                                                               | 39                                                                                                                | 964                                                                                                               |
| 4                                                                                                                 | Uttrakhand                                                                                                        | 542                                                                                                               | 108                                                                                                               | 650                                                                                                               |
| 5                                                                                                                 | Uttar Pradesh                                                                                                     | 10134                                                                                                             | 49                                                                                                                | 10183                                                                                                             |
| 6                                                                                                                 | Andhra Pradesh                                                                                                    | 289                                                                                                               | 7                                                                                                                 | 296                                                                                                               |
| 7                                                                                                                 | Telangana                                                                                                         | 155                                                                                                               | 0                                                                                                                 | 155                                                                                                               |
| 8                                                                                                                 | Gujarat                                                                                                           | 907                                                                                                               | 1                                                                                                                 | 908                                                                                                               |
| 9                                                                                                                 | Maharashtra                                                                                                       | 1338                                                                                                              | 62                                                                                                                | 1400                                                                                                              |
| 10                                                                                                                | Karnataka                                                                                                         | 1704                                                                                                              | 5                                                                                                                 | 1709                                                                                                              |
| 11                                                                                                                | Tamil Nadu                                                                                                        | 362                                                                                                               | 0                                                                                                                 | 362                                                                                                               |
| 12                                                                                                                | Puducherry                                                                                                        | 0                                                                                                                 | 0                                                                                                                 | 0                                                                                                                 |
| 13                                                                                                                | Chhattisgarh                                                                                                      | 106                                                                                                               | 2                                                                                                                 | 108                                                                                                               |
| 14                                                                                                                | Odisha                                                                                                            | 75                                                                                                                | 0                                                                                                                 | 75                                                                                                                |
| 15                                                                                                                | Madhya Pradesh                                                                                                    | 83                                                                                                                | 4                                                                                                                 | 87                                                                                                                |
| 16                                                                                                                | Goa                                                                                                               | 4                                                                                                                 | 0                                                                                                                 | 4                                                                                                                 |
|                                                                                                                   | All India                                                                                                         | 17840                                                                                                             | 303                                                                                                               | 18143                                                                                                             |

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