Lok Sabha Question No. 44 (UNSTARRED), answered on 2022-02-02
Subject: Sugar Mill Condition
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: Rajeshbhai Naranbhai Chudasama

## GOVERiliIENT OF TNDIA Mll{lsrRY oF GoNSUMER  AFFA,R'' FooD &  puBlrc  DrsrRrBUTror{

## DEPARTMEI{T  OF FOOD A]{D PUBLTC DISTRTBUTIOiI

## LOK SABHA UNSTARRED QUESTION }IO.44 TO BE AilSWERED Oil 2ND FEBRUARY,2022

## SUGAR  MILL GONDITIOII

## 44. SHRI RAJESHBHAT  CHUDASAMA:

Wall the  Minister of  GOt{SUilER  AFFAIRS,  FOOD A}tD  pUBLtC DrsrRrBUTtOil  ,T'ffir er*, ur<-r 3t{  gr{8fr6  fuf{"r +i} re pteaseo  to state:

- (a)  whether the Government  is aware of the fact that sugar mirs throughout
- the country  are under criUcat  financlat condition;
- (b)  if so, the steps taken by the Govemment  to revive these sugar mt[s;
- (c)
- whether  the Government  has considered using sugarcane as bio-fuer to revive these sugar mills and to make  them financaally viabte; and
- (d)  if so, the de,tails thereof,:?

THE l|ntilSTER  OF STATE GONSUMER  AFFAIRS,  FOOD AND PUBLTC  DTATRTBUTION (sHRt  ASHwlN! KUmaR GHOUBETI

## ANSWER

(a) & (b): rn a normar  sugaf season, production  of sugar is around 320-330 Lakh Metric Tonne (LMT) as against  the domes*c consumption of 260 LMT which results in huge carry over stock of sugar with milts. This excess stock of 60 LMT atso reads to brockage of funds & affects  the riquidity  of sugar mifls resurting  in derayed payment  of cane dues & uitimatery resulting  in accumuration  of cane arreans.  tn ordef to tind a rong term solutaon  to  address  the problem  of excess sugar, Goyetnment is encouraging  sugar milts to  dived excess sugarcane  to  ethanot. Government  has fiixed target of {o7o brending  of fuet grade  ethanor 'yith petrol by 2022 & 2o% brending by 2(025- !n sugar seasons 2o{g-{9, 2oig-2o & 2020'21, about 3.37 LMT' 9.26 Lirr & iz  .,tn of sugar diverted  to ethanol respecfively.

Arso, with a view to improve  the .iquidity position  of sugar mits and to enabre  them to make timery payment  of cane dues of farmerc, Gentral Govemment had taken various  measures  vaz. extended assistance to sugar mills to faciritate export of $uga4 extended assistance  to mils for maintaining  buflef stocks; extended  soft toans  to sugar mirs through banks to ctear cane price dues; fixed Minimum serting prile  of sugar otc.

As a resutt of these measures, financial  conditions  of sugar mitts has improved and about 99% of cane dues upto sugar seasons 2o1g-2o arur 987o of cane dues for sugar season  2O2O-21have  been cleared.

(c) & (d):  yes,  $rr. with a view to support sugar sector and an the int.rest of sugarcane  farm6rs, Government  is encouraging  sugar mi,'s to divert exces3 sugarcane  & sugar to ethanor. Government  has attowed production of ethanol  from B-Heavy  molasses,  sugarcane  iuice, sugar syrup and sugar and has arso beern fixing the remunerative  ex.mi[ price  of ethanot derived from various feed stocks,  To achieve brending  targets, Government  is encouraging  sugar mitts and distileries  to enhan"" it "i, distartation capacities for which Government is faciritating them to avair roans from banks for which interest subventio n @ 6o/o  or 5oo/o of the interest  charged by the banks whichever  is tower is being borne by Government. As the revenues  generated  from sare of ethano! by sugar mi[s/distifleries  reach to the accounts  of sugar mitts in around 3 weeks time as against {2-{5 months time taken from sate of sugar, production  of ethanor wourd improve liquidity  of sugar rmils enabting them to make timery payment  of cane dues of sugarcane farmers.

ln past  three Ethanol Suppty  years  (December-  November),  revenue of about Rs. 34rooo  crore has been rearized by sugar mitts from the sare of ethanol to Oil Marketing Companies (OMGs),  which has helped sugar mills/molasses  based distiileries  to make timery payment  or ""i" iu"s or farmers.