Lok Sabha Question No. 453 (UNSTARRED), answered on 2020-02-04
Subject: Increase in Sugarcane Price Arrears
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: Gajanan Chandrakant Kirtikar, Bidyut Baran Mahato, Sanjay Sadashivrao Mandlik, Shrirang Appa Barne, Sudheer Gupta

## MIN|STRY  OF CONSUMER  AFFAIRS, FOOD &  pUBLtC  D|STR|BUTTON

## GOVERNMENT OF !ND!A DEPARTMENT OF FOOD AND PUBLIC DISTRIBUTION

## LOK SABHA

UNSTARRED  QUESTION NO. 453

TO BE ANSWERED ON 4OI FEBRUARY,2O2O

## INCREASE IN SUGARCANE  PRICE ARREARS

453. SHRI GAJANAN XIRTIKAR:

SHRI BIDYUT  BARAN MAHATO:

SHR! SANJAY SADASHIV  RAO MANDLIKT

SHR! SHRIRANG APPA BARNE!

SHRI SUDHEER  GUPTA:

Will the Minister of GONSUMER AFFAIRS,  FOOD AND PUBLIC DISTRIBUTION  rv*tq61 arri, er-a dk srffir fur{Er d+ be pteased  to state:

- (a) whether the Government is aware that the bumper production of sugarcane durlng the sugar seasons 2O17-1E and 2O{E-{9 has resulted in the contanuous reduction of ex-mall price  of sugar and lf so, the details thereof;
- (b) whether at is true that cane price arears of farmers for sugar season  2018l9 has reached an alarming level of about Rs. 2E,39O  crore and if so, the detaals thereof;
- (c) whether the Government as plann:ng  to provide financial assistance to the sugar mllls to compensate thecost of sugar and payment of duesi/arrears  to the famors by the sugar mill owners;
- (d) the total amount  of funds proyided by the Govemment to sugar mills to protect the cane farmers and the number of cane farmers who got the payment;
- (e) whether the Govemment  has taken any steps to stabilize sugar prlces and improve  the liquidityr  of sugar mills an order to pay arrea]s to the cane farmerc and if so, the details thereot and
- (0 the details of other steps taken/being  taken by the Govemment  in vlew of the non-payment  of dues by sugar mills to the sugarcane farmers?

## ANSWER

iilNtsTER  OF STATE FOR MINISTRY  OF CONSUiIER AFFAIRS, FOOD & PUBLIC DISTRIBUT!ON

(SHRI DANVE RAOSAHEB DADARAO)

(a): The sugarcane production  durlng sugar season 2Ol7-iA  & 20{ 8-{ I was 3799 Lakh MT & 4OOl Lakh MT respectavely. The sugar production during sugar seasons 2O17-1A  & 20l8.l9 was 32{.96 Lakh iiT &  331.30 Lakh MT respectively whlch was much higher than the domestic demand  of around 255 Lakh MT. The excess sugar production during sugar season 2O17-1A had adversely  affected the market sentiment due to which the ex-mill prices  ot sugar in the domestic market fel! sharply in the range of Rs. 24.5O to Rs. 26 per kg in the month of May' 2OlE.

- (b):  The cane price arrears of farmers for the sugar season 2o{8-ig reached  to a level of Rs.28r222  Cr in the month of April,2o{9, However,  as a resutt of various remedial measures taken by the Gentral Government, the cane price arrears for sugar season 2018-19 has come down to Rs. 2,219 crore, as on 21.O1.2O2O.
- (c) to (O: ln view of excess domestac production  of sugar in the country in sugar seasons 2O17-iA A 20{8-19 and anticipation of excess availability  of sugar in 2O19-2O sugar season also, the Gentral Government took following steps to stabilize sugar prices at reasonable  level and to amprove liquidity of sugar milts thereby enabling them io clear cane price dues of famers:

## SUGAR SEASON 20{7-18

- (D  Fixed a minimum selling price (MSP)  of sugar at Rs.29lk9 w.e,f. O7.O6.2O18 which was revised to Rs. 31/kg w.e.t. 14.02.2O19.
- (ii)  Extended  Assistance  to sugar mills @Rs.5.5o/quintal  of cane crushed  for sugar season 2017-18 to offset the cost of eane amounting to about Rs.43O crore.
- (iia)  Created  buffer stock of 3O LllllT in sugar  season 2017.18  for which Government is reimbursing carrying cost of Rs.780  crore towards maintenance of buffer stock.

## SUGAR SEASON 2014-19

- (D Extending Assistance to sugar mills @Rs.{ 3.88/quintal of cane crushed for sugar season 2O1A4S to offset the cost of cane amounting to about Rs.3OOO crore.
- (ii) Extending Assistance to sugar mills for defray-ng expenditure  towards intema! transport,  freight, handling  and other charges to facilitate export of sugar from the country in sugar season 20{8-{9 amounting to about Rs. 700 crore.
- (iii) Extended soft loans amounting  to Rs 74O2 crore to sugar malls through banks, for which Government  would bear interest subvention  of about Rs 518 crore @ 7Y" for one yean.

## SUGAR SEASON 2049-20

- (i)  Created  buffer stock of 4O LMT of sugar for a  ppriod  of one year from 'l't August, 2O{9 to 3tst July, 2O2O lot which Govemment is reimbursing carrying cost of Rs.l674 crore towards maintenance of buffer atock.
- (ii) Providing assistance to sugar mills @ Rs {O448IMT to facilitate  export of sugar for expenses on export of 6O LMT of sugar in sugar season  2019.2O for which an estimated expenditure  of Rs 6288 Gr would be bome by Govt.

- (iii) The Govemment has allowed production ot ethanol f.om sugar and sugar syrup for curent ethanol supply yea, 2O19-2O  (Decemberr2ol9  . Novembeq2O2Ol and fixed the remunerative ex-mil! price of ethanol derived from c-heavy molasses @ Rs. 43.75/latre,  from B.h6avt/  molasses  @ Rs.54.271  latre and @ Rs. 59.48/litre for the ethanol derived from sugarcane  iu:ce/  sugar/ sugar syrup.

The powers to enforce the provisions of Sugarcane  (Control) Order, {966 with regard to  payment  of cane dues of farmers ls vested with the State Govemments. The Gentral Government from time to time issues advisory to the State Govemments for ensuring clearance  of cane price arrears  of farmers and to take necessary action against defaulting mills. The State Government  of Uttar Pradesh has issued Recovery Certaficate  to one defautting  sugar mill and has also filed F.l.R. against seven such sugar mills belonging to  private sector. The Govemment of Maharashtra  has also issued Revenue  Recovery Gertificates to 78 defaulting  sugar mills.