Lok Sabha Question No. 187 (UNSTARRED), answered on 2021-02-02
Subject: Interest Free Loan/Subsidy to Sugar mill owners
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: DNV Senthilkumar. S., Subhash Ramrao Bhamre, Supriya Sadanand Sule, Amol Ramsing Kolhe, Kuldeep Rai Sharma, Sunil Dattatray Tatkare

## GOVERNMENT OF INDIA

## IUTNISTRY OF CONSUMER  AFFAIRS' FOOD & PUBLIC DISTRIBUTION DEPARTMENT OF FOOD A]{D PUBLIG DISTRIBUTION

## LOl( SABHA UNSTARRED OUESTION NO. {87

TO BE Ai{SWERED 01{ 2"' Februaryr20.2,,

## INTE:REST FREE LOAN/SUBSIDY TO SUGAR MILL OWNERS

{87. DR. DNV SENTHILKUMAR S.: DR. SUBHASH  RAMRAO BHAMRE: SHRIMATI SUPRIYA SULE: DR. AMOL RAMSING KOLHE: SHRI KULDEEP RAI SHARMA: SHRI SUNIL DATTATRAY  TATKARE:

Will the Minister of DISTRTBUTION  sT!N}.TAI TTrr*, CONSUMER AFFAIRS, FOOD AND PUBLIC

state: Er6c ait{ srffi6,  fut{ur d'* be pleased to

- (a)  whether the Government  provides interest free Ioan/subsidy to the sugar mill owners in the country and if so, the details thereof indicating the quantum  of funds provided and the purpose for which the said funds were provided during the last three yearc and the current  year;
- (b)  whether the Government has approved Rs.3r5OO  crore subsidy to sugar mills for export of 6O lakh tonnes of sugar during lhe yeat 2O2O'2'l;
- (c) if so, the details  thereof and the aim and obiective  behind  the move;
- (d) the number of sugarcane  growing farmerc to be benefited out of this subsidy,  State-wise including Maharashtral  and
- (e)  the mechanism put in place by the Government to monitor t'mely transfer of funds and its utilisation by the farmers?

## ANSWER

Mtt{tsrER  oF STATE FOR MTNISTRY OF GOilSUMER  AFFAIRS,  FOOD &

PUBLIG DISTRIBUTION

(SHRI DANVE RAOSAHEB DADARAO)

(a): To improve the tiquidity  of sugar milts thereby enabling them to c!ear cane price dues of farmer.ls, central Government has taken number of initiatives from time to time. The details o, funds  provided to sugar mills under various measures  during the last three sugar seasons  and the current sugar season are as unden

- (i) Extended  Assistance to sugar mills @Rs.5.50/quintal  of cane crushed for sugar season 2lJ1744  to offset the cost of cane and reimbursed  about Rs.43O crore under this scheme.
- (ii) Allocated  buffer stock of 3O LMT amongst sugar mills in sugar season 2O17-lA for which Government decided to reimburse carrying cost of Rs.78O crore to'wards maintenance  of buffer stock.

## SUGAR S NI 2018.1 9

- Extended  interest subvention on the loans given by banks to sugar mills under the scheme namely  "Scheme  for extending financial assistance to sugar mills for enhancement  and augmentation of ethano! production  capacity". lnterest subvention @ 6 % per annum ot 5Oo/o  of rate of interest charged  by banks, whichever  is lower, on the loans extended by banks is bome by the Gentral Government for five years including one year moratorium  against the loan availed by proiect proponents.
- Extended Assistance  to  sugar mills @Rs.{3.88/quintal  of cane crushed for sugar season 2O1A-19 to offset the cost of cane and reimburced  about Rs.3OOO crore under this scheme.
- t. Extended Assistance  to  sugar mills for defraying expenditure towards intemal transport, freight, handling and other charges to facilitate  export of sugar from the country in sugar season 20{8-{9 and decided to reimburse about Rs. 9O0 crore under this scheme.
- Extended soft loans amounting to Rs 74O2 crore to sugar mills through banks, for  which Govemment  would bear interest subvention  of about Rs 5{8 crore @ 7o/" lor one year. lv.

## SUGAR SEASOr{ 20{9-20

- (i) Allocated buffer stock of 4O LMT amongst sugar mills for a period of one year from lst  Augustr 2O{9 to  3{st Julyr 2O2O for which Government der:ided to reimburse carrying cost of Rs.r674 crore towards maintenance of buffer stock,
- (ii) Providing  assistance to sugar mills @ Rs 1O448/MT to facilitate export of sugar for expenses on export of 60 LMT of sugar in sugar season 2O19-2O for which an estimated expenditure of Rs 6288 Gr would be borne by GoW.

- (i) Providing assistance to sugar mills @ Rs 6OOO/MT  to facilitate export of sugar for exp,enses on export of 60 LMT of sugar in sugar season 2O20. 2{ for which an estimated expenditure of Rs 35OO Gr would be borne by Govt.
- (b) & (c):  With a view to facilitate export of excess sugar from the country during the sugar season 2O2O-21 thereby improving the liquidity position of sugar mills enabling  them to clear cane price dues of farmers, Gentral Government has notified a scheme on 29-12-202O for providing assistance  to  sugar mills for  marketing costs including handling, upgrading  and other processing costs and costs of international and internal transport and freight charges on export of 6O LMT of sugar. An expenditure  of about Rs. 35OO crore is to be borne by the Central Govemment.
- (d): There are about 5 crore sugarcane farmers including their families in the country, which are being benefited from various schemes for sugar sector. Data regarding  number of farmerc benefited under the individual scheme is not maintained by the Government.
- (e): ln order to ensure that the assistance is directly credited into the accounts of farmers, the sugar mill shall open a separate no-lien account in a nationalized bank/cooperative bank and furnish to that bank, the list of farmers  along with bank accounts details and extent of cane price dues payable to the farmers, for the sugar season 2O2O-21 and cane price arrears of  previous sugar seasons, duly certified by  the  Cane Commissioner / Director  of Sugar of the state concerned. The bank shall credit the amount of assistance to the farmers' accounts  on behalf of the sugar mills against cane dues payable and subsequent balance,  if anyt shall be credited  into mill's account. The sugar mill concerned shall submit utilization ceftificate duly counter signed by the respective Sugarcane Gommissioner / Director (Sugar) within three months from the date of release of subsidy certiftring that the subsidy so released has been utilized for the purpose specified in the Scheme.