Lok Sabha Question No. 1115 (UNSTARRED), answered on 2018-07-24
Subject: Non Payment of Dues to Sugarcane Farmers
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: KUNWAR HARIBANSH SINGH, ASHOK SHANKARRAO CHAVAN, SUDHEER GUPTA, GAJANAN CHANDRAKANT KIRTIKAR, VIJAY KUMAR S.R., BIDYUT BARAN MAHATO, T. RADHAKRISHNAN, S. RAJENDRAN

## GOVERNMENT OF INDIA

## MINISTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION

## DEPARTMENT OF FOOD AND PUBLIC DISTRIBUTION

## LOK SABHA

UNSTARRED QUESTION NO. 1115

TO BE ANSWERED ON 24 TH  JULY, 2018

NON PAYMENT OF DUES TO SUGARCANE FARMERS

1115. KUNWAR HARIBANSH SINGH:

SHRI ASHOK SHANKARRAO CHAVAN:

SHRI SUDHEER GUPTA:

SHRI GAJANAN KIRTIKAR:

SHRI S.R. VIJAYAKUMAR:

SHRI BIDYUT BARAN MAHATO:

SHRI T. RADHAKRISHNAN:

SHRI S. RAJENDRAN:

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  sugar  mills  are  not  making  payments  of  dues  to  the sugarcane farmers even after the end of sugar cane crushing season;
- (b) if so, the details of the amount to be paid to sugarcane farmers along with the reasons for non-payment of dues, till date, company and State-wise;
- (c) whether  the  Government  has  approved  a  package  and  made  other announcement for the sugar mills recently to help pay dues to farmers;
- (d) if  so,  the  details  thereof  and  the  number  of  sugar  mills  likely  to  be benefited through this announcement; and
- (e) whether  the  said  announcement  is  appropriate  for  payment  of  the dues to the sugarcane farmers and if not, the further action being taken by the Government to ensure the payment of dues to the sugarcane farmers by the sugar mills?

## A N S W E R

MINISTER OF STATE FOR  CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION

(SHRI C. R. CHAUDHARY)

(a)& (b): Payment  of  dues  to  the  sugarcane  farmers  is  a  statutory obligation  on  sugar  mills  under  the  provisions  of  the  Sugarcane  (Control) Order, 1966. However, payment of cane price dues of farmers by sugar mills is a  continuous  process  and  low  realisation  from  sale  of  sugar  due  to  surplus sugar  production  leads  to  accumulation  of  cane  price  arrears.      As  on 18.07.2018  for  2017-18  Sugar  Season,  out  of  total  cane  dues  payable  of Rs.73431  Crore,  an  amount  of  Rs.64218  Crore  has  been  paid  and  Rs.9213 Crore  is  pending  on  Fair  and  Remunerative  Price  (FRP)  basis;  and  on  State Advised Price (SAP) basis, out of total cane dues payable of Rs.84,580 Crore, an amount of Rs.66,896 Crore has been paid and Rs.17,684 Crore is pending.

State/ company-wise details of the same are at Annexure.

(c)& (d): To mitigate the situation by improving the liquidity position of sugar  industry  by      stabilizing  domestic  sugar  price  so  as  to    facilitate liquidation  of  cane  price  arrears,  the  Government  has  undertaken  the following measures:-

- (i) Increased customs duty on import of sugar from 50% to 100%.
- (ii) Withdrawn customs duty on export of sugar.
- (iii) Allocated  mill-wise  Minimum  Indicative  Export  Quotas  (MIEQ)  of  20 LMT of sugar during sugar season 2017-18.
- (iv) Allowed Duty Free Import Authorization (DFIA) in respect of sugar.
- (v) Fixed minimum selling price of sugar at factory gate @ Rs.29 per kg for sale in the domestic market.
- (vi) Imposed  stock  holding  limits  on  sugar  mills  to  maintain  demand supply balance.
- (vii)    Extended financial assistance to sugar mills @ Rs. 5.50 per quintal of cane crushed during 2017-18 sugar season to offset the cost of cane. Assistance  amounting  to  Rs.  1540  Crore  to  be  paid  directly  to  the farmers on behalf of the mills under the scheme.
- (viii)   Notified Scheme for creation and maintenance of buffer stock of 30 Lakh MT of sugar for one year w.e.f. 1.7.2018 for which carrying cost and  storage  &  insurance  charges  of  about  Rs.  1175  Crore  will  be borne by the Government.
- (ix) Notified  a  scheme  to  augment  and  enhance  ethanol  production capacity  by  extending  loans  of  about  Rs.  4440  Crore  on  which interest subvention of Rs. 1332 Crore to be borne by the Government.

All the sugar mills to be equitably benefitted by the various measures announced by the Government.

- (e)  Yes, Madam. As on 01.06.2018 cane price arrears of farmers for 2017-18 Sugar Season were Rs.14003 Crore and Rs.22645 Crore on FRP & SAP basis respectively. As a result of these measures,  as on 18.07.2018,  cane price arrears have come down to Rs.9213 Crore and Rs.17684 Crore on FRP & SAP basis respectively.

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## ANNEXURE

## ANNEXURE  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  &  (b)  OF  THE  UNSTARRED QUESTION NO. 1115 DUE FOR ANSWER ON 24.07.2018 IN THE LOK SABHA.

| Statement showing state/company- wise pending cane price arrears (as on 18.07.2018)   | Statement showing state/company- wise pending cane price arrears (as on 18.07.2018)   | Statement showing state/company- wise pending cane price arrears (as on 18.07.2018)   | Statement showing state/company- wise pending cane price arrears (as on 18.07.2018)   |
|---------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------|
|                                                                                       |                                                                                       | No.of Company/Sugar Mills which have pending arrears                                  | Figures in crores                                                                     |
| 1.                                                                                    | PUNJAB                                                                                | 15                                                                                    | 788                                                                                   |
| 2.                                                                                    | HARYANA                                                                               | 14                                                                                    | 693                                                                                   |
| 3.                                                                                    | UTTAR PRADESH                                                                         | 118                                                                                   | 11618                                                                                 |
| 4.                                                                                    | UTTARAKHAND                                                                           | 7                                                                                     | 612                                                                                   |
| 5.                                                                                    | MADHYA PRADESH                                                                        | 12                                                                                    | 86                                                                                    |
| 6.                                                                                    | CHHATISGARH                                                                           | 1                                                                                     | 4                                                                                     |
| 7.                                                                                    | GUJARAT                                                                               | 15                                                                                    | 601                                                                                   |
| 8.                                                                                    | MAHARASHTRA                                                                           | 89                                                                                    | 1158                                                                                  |
| 9.                                                                                    | BIHAR                                                                                 | 11                                                                                    | 619                                                                                   |
| 10.                                                                                   | ANDHRA PRADESH                                                                        | 9                                                                                     | 47                                                                                    |
| 11.                                                                                   | KARNATAKA                                                                             | 41                                                                                    | 1046                                                                                  |
| 12.                                                                                   | TAMIL NADU                                                                            | 10                                                                                    | 187                                                                                   |
| 13.                                                                                   | ODISHA                                                                                | 2                                                                                     | 58                                                                                    |
| 14.                                                                                   | GOA                                                                                   | 1                                                                                     | 58                                                                                    |
| 15.                                                                                   | TELANGANA                                                                             | 6                                                                                     | 109                                                                                   |
|                                                                                       | TOTAL                                                                                 | 351                                                                                   | 17684                                                                                 |

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