Lok Sabha Question No. 126 (UNSTARRED), answered on 2022-02-02
Subject: Problems of Sugar Mills
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: Arun Kumar Sagar

## GOVERilTIE]IT  OF INDTA

## MlNlsrRY oF col{suMER AFFATR', FooD &  puBlrc  DrsrRrBUTro,. DEPARTMEilT OF FOOD AND PUBLIG DISTRIBUTION

## LOK SABHA UI{STARRED  QUEATrcN NO.{26 TO BE AitswERED  Ot{ 2ND FEBRUARY,  2022

## PROBLEMS  OF SUGAR MILLS

## t  {26. SHRI ARI,N ](UMAR SAGAR

Wi[ the Minister  of GONSUMER  AFFAIRS,  FOOD AND  pUBLtC

DrsrRrBUTtON '5qlrtfir  rnr*, vrr-r dh grffie  Ffr*r ,i* t"-pr""."o to state:

- (a)  the detaits  of  probtems respectiyely  in the country6 of sugar producing  mills and farmer:s
- (b) whether the Government  is taking any steps to add!€ss  said issues;
- (c) if so, the details  thereof; and
- (d) the speciat measures adopted  by the Government  to make country self-dependent  an the fietd of sugar production?

AI{SWER MINISTER  OF STATE FOR MIilISTRY  OF RURAL OEVELOPMET{T  AI{D GoNSUMER AFFAIRS,  FOOD &  puBltc  DtsTRtBUTtON (sADHVt  I{TRANJAT{ JYOTT)

- (a)  to (c): rn a norrna!  sugar season, production  of sugar is around 320€30 Lakh Metric Tonne (LMT) as against  the domestic  consumption  of 260 LMT which resurts in huge carry over stock of sugar with mirs. This excess stock of 60 LMT atso reads  to brockage  of funds & aftects  the .iquidity of sugar  mills resulting ln delayed  patment  of cane dues thereby  some*mes resulting in accumutation  of cane arrears  of farmers.

rn order to find a rong  tenn sorution  to address  the probtem  of excess sugar, Governnrrent  is encouraging  sugar mitts to divert "r"""a *ug"rrn" to ethanot'  As the revenues generated  from sare of ethanor  by sugar mirrs/distireries  reach  to the accounts  of sugar mirs in around  3 weeks time as against  {2'r5 months  *me taken from sare of sugar, production  of ethanol  woutd improve  liquidity of sugar mits enab*ng them to make timely payment  of cane dues ot "ug"r""'n" fan er$. Government  has fixed target  of lo% brending  of fuer grade  ethanor  with petrot  by 2022  a  20% blending by 2025. rn sugar seas.ns  2018-{9, 2,.1s-20  &202,'-21rabout  3.37 LMT, 9.26 LMT & 22 LMT of sugar diverted to ethanot  respectivety.

Also, with a view to improye the llquidity position  of sugar milts and to enable  them to make timety payment  of cine dues "i arri"o,'C"rr,r", Government  had taken various  measures  viz. extended assistance  to suga, mills  to fac'ritate expott  of sugar;  extended  assistance  to mirs for maintaining  buffer stocks; extended  soft roans  to .,.g",  -i-n"  ii"o.rrn banks to ctear cane price duesl fixed Minimum S\_etting price  of sugar etc.

As a result of these measures,  about 99%,of cane dues upto sugar seasons 2019'2', and  ggolo  of cane dues for'sugar seaso  n 2020.21  have been cleared.

!1), ln nomat sugar season, production  of sugar is around 32o.33o Lakh Metric Tonne (Ll[T)  as against  thc domestic  consumption  of 26O LMT. Therefore,  country  is setf- dependent  t,. ,";--;;;;;;;;.: ill*r"r, Gent.r Government  fixes Fair E Remunerative price  (FRp)  of sugarcane before commencement  of every sugar soason  to encourage  farmers to cultivate  sugarcane  and taciritate continued  opefation  of sugar factories for domestlc manuf,acturing  of sugar.