Lok Sabha Question No. 103 (STARRED), answered on 2021-02-09
Subject: Sugar Mills
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: Harish Dwivedi

## GOVERNMENT OF INDIA

## MtNtsTRy oF coNsuMER AFFAIRS, FOOD &  pUBLtc  DTSTR|BUTION DEPARTMENT OF FOOD AND PUBLIC DISTRIBUTION

## LOX SABHA

## STARRED  QUESTION NO.{03 TO BE ANSWERED  Ot{  gth  February, 2O2l

## SUGAR MILLS

## t*{03.  SHRI HA,RISH DWIVEDT:

Will the Minister of GONSUMER  AFFAIRS,  FOOD AND  pUBLtC DISTRIBUT|oI rrrf+dr err], urEc sf{ sr+nfr6. Fffrrur  t'+ be pleased to state:

- (a)  the number of operational  and non-operational sugar mills in the country  at present,  State-wise and region-wise;
- (b) the steps taken/proposed  to be taken by the Government to restart operations  of non-operational  sugar mills, State.wise; and
- (c) the steps taken by the Government  to set up new sugar mills in the country, State-wise?

## ANSWER

MINTSTER OF RAILWAYS,  GOMMERCE & |NDUSTRY  AND coNsuMER AFFAIRS,  FOOD & PUBLIC DISTRIBUTION (sHRr PTYUSH GOYAL)

(a) to (c): A statement  is taid on the Table of the House.

STATEMEI{T REFERRED TO tN REpLy TO PARTS (a) TO (c) OF THE STARRED QUESTION NO.  *IO3  DUE FOR ANSWER  ON O9.O2.2O2{  !I{ THE LOK SABHA.

- (a): As per infonnation  received from the states, at present, 493 sugar mills are operationat and 2o2 sugar mitts are non-operat:ona!  an the country. A statement showing state-wise number of operationar and nonoperational  sugar mills in the country is given at Annexure-|.
- (b): Non'operation of the sugar mills is normalty attributable  to nonavailability  of adequate sugarcane, uneconomic size of ptant, lack of modernizationr high cost of working capita!, poor recovery  from sugarcane, lack of professional management, overstaffing and financiat crunch etc.. In case of  private  sector sugar mills, it  is  the responsibitity  of  the entrepreneurs to take necessary  steps to operationtise  their closed sugar mills, and in  case of  co-operative/pubtic  sector sugar mills, the responsibility  ties with  the  co-operative societies/respective  state govemments. As per the information received from various state Governments, the steps taken by them to  operationarise  the nonoperational  sugar mills is given at Annexure-ll.
- (c): The Gentral Government does not set up new sugar mills in any state of the country. The sugar industry has been de-licensed with effect from {{6 September,  1998. After deticensing, the entrepreneuns  are free to set up new sugar mills in any part of the country subiect to fulfilting the conditions laid down in the Sugarcane  (Gontrot)  Order, 19G6.

## ANNEXURE REFERRED To IN REPLY To PART (a) oF THE STARRED QUESTION NO.103 FOR ANSWER ON O9.O2.2O2I IN THE LOX SABHA.

| S.No   | STATE                     | No. of Crperational sugar mills   | No. of non- operational sugar mills   |
|--------|---------------------------|-----------------------------------|---------------------------------------|
| ( 1 )  | (2',,                     | (3)                               | (4)                                   |
| 1      | Punjab                    | t6                                | 8                                     |
| 2      | Har na                    | 14                                | o                                     |
| 3      | Rajasthan                 | I                                 | 2                                     |
| 4      | Uttar Pradesh             | 124                               | 37                                    |
| 5      | Uttrakhand 7              |                                   | 3                                     |
| 6      | Madhya Pradesh            | 20                                | o                                     |
| 7      | Chhattisgarh              | 4                                 | o                                     |
| 8      | Gujarat                   | 15                                | 6                                     |
| 9      | Maharashtra               | 182                               | 42                                    |
| l0     | Bihar                     | {0                                | {8                                    |
| 11     | As,sam                    |                                   | 3                                     |
| 12     | Orissa                    | 1                                 | 7                                     |
| t3     | We,st Bengal              |                                   | 3                                     |
| 14     | Andhra Pradesh -TeIangana | 8                                 | 21                                    |
| t5     | 6                         |                                   | 5                                     |
| {6     | Karnataka                 | 65                                | 22                                    |
| 17     | Tamil Nadu                | 24                                | {8                                    |
| 18     | Puducherry                |                                   | 2                                     |
| {9     | Kerala                    |                                   | 2                                     |
| 20     | Goia                      |                                   | 1                                     |
| 21     | Nagaland                  |                                   | 1                                     |
| 22     | Oadra & I{agar Haveli     |                                   | 1                                     |
|        | Tolal                     | 493                               | 202                                   |

## ANNEXURE  REFERRED  TO IN REPLY TO PART (b) OF THE STARRED QUESTION NO.I03 FOR ANSWER  ON O9.O2.2O2I IN THE LOK $ABHA.

| State          | Steps taken                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Uttarakhand I  | State Government is considering to operate one sugar mil of cooperative sector namely Sitargani for the next sugar season. Government of Uttarakhand has decided to give sugar mill in the long term lease and necessary exercise is ln rogress.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| Maharashtra    | The State Government has passed the Resolution on O4.O9.2O2O and framed criteria to rejuvenate DoD. operational sugar mills and its atlied units on hire, partnership or collaboration basis.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| Bihar          | The Government of Bihar has taken a poticy decision to revive the sick sugar mills of the Bihar State Sugar Gorporation Ltd. by transferring them to private/public sector entrepreneurs on long term lease through bid process management. Out of the {5 closed sugar mills, 8 closed units have been transferred to Bihar tndustria! Development Authority for establishing priority sector industries. Out of remaining 7 closed mills , 2 sugar matts namely Lauriya (West Champaran) and Sugauli (East Ghamparan) have been reconstructed and revived by HPGL Biofuel Ltd. and they have become operational. Bidding process of other 5 sugar mills namely Bihta, Motipur, Raiyam, Samastipur and Sakri have also been completed. |
| Andhra Pradesh | In respect of the Gooperatave sugar mitls, Group of Ministers is formed to study and suggest measures for the improvement of the mills in Andhra Pradesh. The Group of Ministers is visiting the cooperative sugar mills to study the ground level constrains of the mills to suggest alternate remedies,                                                                                                                                                                                                                                                                                                                                                                                                                              |
| Karnataka      | ln the interest of sugarcane farmers and employees of sugar factories, Government of Karnataka has taken a decision to lease out the sick cooperative sugar factories to private entrepreneurs on long-term lease. Eight cooperative sugar factories have been leased out to private entrepreneur so far. One sugar factory of public sector and two of cooperative sector have also been proposed for and lease is under easc                                                                                                                                                                                                                                                                                                         |
| Guiarat        | ln the current financial year 2O2O-21 the State Government of Guiarat has sanctioned liquidity support loan for Rs. 25 Crore to Vadodara District Gooperative Sugarcane Growers Union Ltd., to pay sugarcane arrears to the farmers to survive this non operational sugar mill.                                                                                                                                                                                                                                                                                                                                                                                                                                                        |