Lok Sabha Question No. 431 (STARRED), answered on 2019-07-23
Subject: Outstanding Dues to Sugarcane Farmers
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: Deepak Baij

## GOVERNMENT OF INDIA

## MTNTSTRY  OF CONSUMER  AFFAIRS, FOOD &  pUBLtC  DISTRIBUTION DEPARTMENT OF FOOD AND PUBLIC DISTRIBUTION

## LOK SABHA STARRED  QUESTION NO. 43{

## TO BE ANSWERED  ON 23'd JULY, 2O{9

## OUTSTANDING  DUES TO SUGARCANE FARMERS

## t*431. SHRI DEEPAK BA!J:

Will the Minister of GONSUMER  AFFAIRS, FOOD AND PUBLIG DISTRIBUTIoN  scsr}fdl  rrr*,  urc-a  gt{ grdqftd,  fut{q d*  be pleased to state:

- (a)  the amount of dues of sugarcane farmers outstanding against sugar mills during the last three years and the current year, year and State-wise;
- (b)  whether sugar mills are not clearing the dues of sugarcane farmers year-by-year  and as a  result the outstanding amount is continuously increasing; and
- (c)  the steps taken by the Government in view of the non-payment  of price/dues by sugar mills to the sugarcane farmers on time and the outcome thereofil

AT{SWER MINISTER OF CONSUMER  AFFAIRS, FOOD & PUBLIC DISTRIBUTION (sHRr RAMVTLAS PASWAN)

(a) to (c): A statement  is lald on the Table of the House.

STATEMEIIT  REFERRED TO IN REPLY TO PARTS (a) TO (c) OF THE STARRED QUESTIOI{  I{O.*43{ DUE FOR ANSWER ON 23.O7.2OT9 !il THE LOK SABHA

(a)to(c): The State-wise cane price dues of sugarcane farmers against sugar mills during current sugar season 2O,18-19 and last three sugar seasons as on 17.O7.2O19 is at Annexure.

Depressed sugar prices due to surplus sugar production  in sugar seasons 2O17-1a & 20{8-{9 adversety  affected the liquidity of the sugar mills resulting in accumulation of cane price arrears  of the farmers.

With a view to improving the liquidity position of sugar mitts in the country and enabling them to clear cane price dues of farmerc, the Government has taken following measures in sugar seasons  zOi7-la & 20{ 8.{ 9:

- (i) Fixing a Minimum Selling Price (MSP) of sugar w.e.f O7.O6.2O18 at Rs.29/kg for sale at factory gate in domestic market, below which no sugar mill can sel! sugar. MSP has further been
- increased to Rs.3llKg. w.e.f. {4s February, 2O{9.
- (i  i) Extending Assistance to sugar mills to offset the cost of cane in
- sugar seasons 2O17-18  and 2O{8.19.
- (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 interna! transport, freight, handling and other charges to facilitate export of sugar from the country in sugar season 20{8-{9.
- (v) Extending soft loans to sugar mills through banks for which Government  would bear anterest subvention @ 7o/o lor one year to clear cane price arrears.

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

The Sugarcane (Gontrol) Order, {966 stipulates  payment of cane price within {4 days of supply, failing which interest at the rate ot 15Yo per annum on amount due for the delayed period beyond {4  days is payable.  The Powers to enforce the provis:ons of Sugarcane  (Gontrol) Order, {966 with regard to payment of cane dues of farmers is vested with the State Governments. Gentral Government from time to time issues advasory to the State Governments  for ensuring  clearance of cane price arreans of farmers and to take action against defaulting  mills and also review the position through meetings and video conferences.

Payment of cane price to sugarcane  growing farmers by the sugar mills is a continuous  process. ln sugar seasons 2Ol7-18 & 2O{8-19, cane price payable  to sugarcane farmers on all India basis was Rs. 85{79 crores & Rs. 85646 crores respectively. As a result of various measures taken by the Government as enumerated in Para (ii) to (v) above, the cane dues of farmers for sugar season 201744 & 20{8-{9 have been reduced to Rs. 285 crores & Rs. 15222 crores respectively as on {7.O7.2O19.

## ANNEXURE  REFERRED  TO lN REPLY TO PART (a) TO (c) OF THE STARRED

## OUESTION NO.43{ DUE FOR ANSWER ON 23.O7.2OI9 IN THE LOK SABHA.

(RS. rN CRORES)

## STATEMENT SHOWING STATE. WISE DUES OF SUGARGANE FARMERS IN THE GURRENT SUGAR SEASON & LAST THREE SUGAR SEASONS.(AS Oil 17.O7.2OlSl

| s No   | Name of State   | 2018,49   | 2tJ17-18   | 2lJ16-17   | 2l,15-16 & earlier years.   | Total   |
|--------|-----------------|-----------|------------|------------|-----------------------------|---------|
| 1      | Bihar           | 856       | 12         | 1          | 39                          | 908     |
| 2      | Haryana         | 145       | o          | o          | o                           | 145     |
| 3      | Punjab          | 902       | 39         | o          | o                           | 94,1    |
| 4      | Uttrakhand      | 339       | {08        | o          | 25                          | 472     |
| 5      | Uttar Pradesh   | 9746      | 46         | 22         | 121                         | 9935    |
| 6      | Andhra Pradesh  | 236       | 6          | o          | 1                           | 243     |
| 7      | Telangana       | 120       | o          | o          | o                           | 120     |
| 8      | Gujarat         | 896       | 1          | 17         | t8                          | 932     |
| 9      | Maharashtra     | 826       | 62         | 2          | 171                         | {061    |
| {o     | Karnataka       | 598       | 5          | o          | 33                          | 636     |
| 11     | Tamil Nadu      | 348       | o          | 394        | {{35                        | 1477    |
| 12     | Puducherry      | 0         | o          | {0         | 11                          | 21      |
| {3     | Ghhattisgarh    | {oo       | 2          | 0          | o                           | t02     |
| 14     | Odisha          | 75        | o          | 0          | 3                           | 7A      |
| 15     | Madhya Pradesh  | 3l        | 4          | 6          | 2                           | 43      |
| 16     | Goa             | 4         | o          | o          | o                           | 4       |
|        | All lndia       | 15222     | 285        | 452        | {559                        | 17514   |