Lok Sabha Question No. 3339 (UNSTARRED), answered on 2021-03-16
Subject: Strengthening Sugar Industry
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: Sangamlal Kadedin Gupta

## GOVERNMENT OF INDIA

## MtNtsTRy OF CONSUMER  AFFAIRS,  FOOD &  puBLIG  DISTRIBUTION DEPARTMENT OF FOOD AND PUBLIC DISTRIBUTION

## LOK SABHA

## UNSTARRED QUE$TIOI{ NO. 3339 TO BE ANSWERED  ON t6u'MARCH,2O2{

## STRENGTHENING  SUGAR INDUSTRY

## 3339. SHRI SANIGAM LAL GUPTA:

Will the Minister of GONSUMER AFFA|RS, FOOD AND  pUBLtc DrsrRrBUTrON scrrhdr erril, uni< srk Tr&nfufi Ffilw' t'+ be pteased  to state:

- (a)  whether the sugar mifls are running into losses  in the country and if
- so, the reasons  therefor arong  with the initiative measures  taten by the Government  to strengthen sugar industry during the rast three years; and
- (b)  whether the sugar industries have sought changes in the sugar policy  to overcome these losses and clear sugarcane arreans and if so, the details thereofil

## ANSWER

MTNISTER OF STATE FOR MtNtsTRy  oF coNsuMER AFFAIRS,  FOOD & PUBLIG DISTRIBUTION

(SHR| DAtttVE RAOSAHEB  DADARAO)

(a): The excess sugar production during the rast three sugar seasons (october' september) 2017-19, 2or8-r9 and 2o{9.2o had adversery affected  the market  sentiments  and Ied to a decrine in the domestic ex. mill prices  of sugar. Low reatization  from sare of sugar due to surprus sugar stocks had adversery  affected the financiar hearth of sugar mi[s, thereby resulting  in accumutation of cane price arrears  of farmers. Due to higher cost of production  of domestic sugar than the internationar  price, export of sugar arso becomes difficutt under market mechanism.  The data regarding  barance sheet of sugar mitts are not maintained  by the Government.

However, with a view to improve the liquidity position  of sugar miils and to enable them to make timery payment  of cane dues of farrmers, Gentra! Government has taken various measures during the tast three sugar seasons,  which are as unden

## SUGAR SEASON 2O17-18t

- (i) Extended Assistance  of Rs.43O crore to sugar  mills @Rs.5.5o/quintal  of cane crushed  for sugar season 2O1Z-1g to offset the cost of cane.

- (iD Allocated  buffer stock of 3o Lakh Metric Ton (LMT)  of sugar  amongst sugar mills for a period  of one year from {st July, 2O{g to 30rh June, 2O{9 for which Govemment is reimbursing  carrying cost of Rs.7gO crore towards maintenance  of buffer stock.
- (lii)  Fixed Minimum Sefling price  (MSp)  of sugar w.e.f. O2.O6.20{8  at Rs'2g/kg for sare at factory gate in domestic market, betow which no sugar mill can sell sugar. MSp has further been increased to Rs.3{/Kg. *e.f. l4rh February,  2O{9.

## II. SUGAR sErtsoN 20{8-19:

- (li) Extended Assistance  to sugar mifls for defraying expenditure towards internal transport, freight, handling and other charges  to facttitate export  of sugar from the country in sugar season Zorg\_rg and reimbunsing  about Rs.  gOO  crore under this scheme.
- (i) Extended Assistance  to sugar mirts  @Rs.{3.EE/quintar of cane crushed for sugar season 20rg'{g to offset the cost of cane amounting  to about Rs.3O0O crore.
- (iii) Extended soft loans amounting  to Rs 74o2 crore to sugar mifls through banks to clear cane price arrears,  for whach interest subvention  of about Rs 5{B crore @ 7o/o lor one year is being bome by the Government.

## III. SUGAR sEiAsoN 2019-20

- (i)  Allocated buffer stock of 40 LMT of sugar amongst sugar milrs for a period of one year from {'r August, ZOlg to 3rst July, 2O2O for whlch Govemment  is reimbursing carrying  cost of Rs.{674 crore towards maintenance  of buffer stock.
- (li) Providing  assistance  to sugar  mills @ Rs  ,l  ozl4g/MT  to facititate  export of sugar for expenses on export of 60 LMT of sugar in sugar season 2019-20 for which an estimated expenditure  of Rs 626g cr is being borne by Govemment.

As a result of these measures, the Alt\_tndia cane price arrear of farmers have come down. The position of Cane dues payabte, dues pald and arrears for past  three Sugar Seasons (SS)  are as under:

As on {O.O3.2O2{

Rs in crore )

(b): Representations have been received from Industry Associations  viz. lndian sugar Mi[s Association  (tsMA)  & Nationar Federataon  of Gooperafive sugar Factories Ltd. (NFcsF) for increasing  Minimum serting  price  of sugar, to create buffer stock of 4O LMT of sugar and to announce  export quota  of 60 LMT for export an sugar season 2O2O\_21.

|                    |   ss 20{7.{8 |   ss 20{8.19 | ss 2019.20   |
|--------------------|--------------|--------------|--------------|
| Gane dues payatrle |        85179 |        46723 | 75A45        |
| Cane dues paid     |        84986 |        86314 | 74922        |
| Cane arrears       |          193 |          409 | 923          |