Lok Sabha Question No. 360 (UNSTARRED), answered on 2020-02-04
Subject: Relief for Sugarcane Farmers
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Malook Nagar

## GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE AND FARMERS WELFARE DEPARTMENT OF AGRICULTURE, COOPERATION AND FARMERS WELFARE

## LOK  SABHA

UNSTARRED QUESTION NO. 360 TO BE ANSWERED ON THE 4 TH  FEBRUARY, 2020

## RELIEF FOR SUGARCANE FARMERS

360.   SHRI MALOOK NAGAR:

Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ ष एवं कसान कयाण मंी be pleased to state:

(a) the provisions made by the Government to provide relief to the sugarcane farmers as sugarcane is produced by the farmers as the main crop in a huge quantity in Uttar Pradesh and various parts of the country but they do not get payment for their produce even after one year;

(b) whether  it  is  true  that  the  industrialists  themselves  fix  the  prices  of  their  products whereas the prices of the farmer's produce are generally fixed by the Government; and

(c) if  so,  the  manner  in  which  the  input  cost  of  production  is  assessed/estimated  and taken into account while fixing the prices of farmers' produce and the norms laid down by the Government in this regard?

## ANSWER

MINISTER OF AGRICULTURE AND FARMERS WELFARE

कृ ष एवं कसान कयाण मंी (SHRI NARENDRA SINGH TOMAR)

(a): To  safeguard  the  interest  of  sugarcane  farmers,  Central  Government  fixes  the  Fair and Remunerative Price (FRP) of sugarcane for each sugar season.   FRP is the benchmark price below which no sugar mill can purchase sugarcane from farmers. As per Clause 3(3) of Sugarcane (Control) Order, 1966, sugar mills are required to make cane price payment to farmers within  14  days  of  supply  of  cane.  If  mills  fail  to  make  payment,  they  have  to  pay interest at the rate of 15 per cent per annum on amount due for the delayed period beyond 14 days. The powers for enforcing these provisions are delegated and vested with the State Governments who have the necessary field formations.

As a result of various measures taken by Central Government and State Governments,  for  the  sugar  season  2017-18,  cane  price  dues  of  only  Rs.  135  crore  are pending on all-India basis, out of total cane price payable of about Rs.73840 crore on FRP basis. For sugar season 2018-19,  Rs.1290 crore are pending on all-India basis, out of total cane price payable of about Rs. 81667 crore on FRP basis.

- 2 -

In  Uttar  Pradesh,  the  payment  of  cane  price  to  the  sugarcane  farmers  for  2018-19 season  have  been  made  in  an  effective  manner.  Against  the  payable  cane  price  of  Rs. 33,048.06 crores, an amount o Rs. 31,950.25 crores has already been paid to the sugarcane growers of Uttar Pradesh state upto 27.01.2020, which is about 97%.

(b): The  prices  of  sugar  are  market  driven  &  depends  on  demand  &  supply  of  sugar. However, with a view to protect the interests of farmers, concept of Minimum Selling Price (MSP) of  sugar  has  been  introduced  w.e.f.  07.06.2018  so  that  the  liquidity  position of  the industry improves, so as to enable them to clear cane price dues of farmers.

In exercise of the powers conferred by clause (c) of sub section (2) of section 3 of the Essential  Commodities  Act,  1955,  Government  has  notified  Sugar  Price  (Control)  Order, 2018.  Under  the  provisions  of  said  order,  Government  has  fixed  Minimum  Selling  Price (MSP)  of  white/refined  sugar  at  Rs.29/kg  w.e.f.  07.06.2018  for  sale  by  sugar  mills  at  the factory gate for domestic consumption.  Government has revised the MSP of white/refined sugar from Rs.29/kg to Rs.31/kg w.e.f. 14.02.2019.

(c): Fair  and  Remunerative  Price  (FRP)  of  sugarcane  is  fixed  by  Government  for  each sugar season on the basis of the recommendations of the Commission for Agricultural Costs and Prices (CACP) and after consulting the State Governments and associations of sugar industry and cane growers, having regard to the following factors of Clause 3 of sugarcane (Control) Order, 1966:-

- i. cost of production of sugarcane;
- ii. return  to  the  growers  from  alternative  crops  and  the  general  trend  of  prices  of agricultural commodities;
- iii. availability of sugar to consumers at fair price;
- iv. price at which sugar produced from sugarcane is sold by sugar producers;
- v. recovery of sugar from sugarcane; and
- vi. the realization made from  sale of by-products viz. molasses, bagasse and press mud or their imputed value (inserted vide notification dated 29 th December, 2008)
- vii. reasonable  margins  for  the  growers  of  sugarcane  on  account  of  risk  and  profits (inserted vide notification dated 22.10.2009).

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