Lok Sabha Question No. 3526 (UNSTARRED), answered on 2021-08-10
Subject: Closed Sugar Mills
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: Poonamben Hematbhai Maadam

## MrNtsTRy oF coNsuMER AFFAIRS, FOOD &  pUBLtC  DISTRIBUTION

## GOVERNMENT OF INDIA DEPARTMENT OF FOOD A]{D PUBLIC DISTRIBUTION

## LOK SABHA UNSTARRED QUESTION NO. 3526

## TO BE AI{SWERED ON {OrH AUGUST,2O2t

## CLOSED SUGAR MILLS

## 3526. SHRIMATI POONAMBEN MAADAM:

Will the Minister of  GONSUMER  AFFAIRS, FOOD AND  pUBLtc DISTRIBUTION  scSfrmr err*, urc\_c .ft{ srffif,{. Fda{q  d* be pteased  to state:

- (a)  whether around 2{7 sugar mills are tying closed  at present;
- (b) if so, the details  thereof and the reasons therefor;
- (c) whether the Government has made any efforts to revive these mills;
- (d) if so, the details  thereofl and
- (e)  if not, the reasons therefor?

## ANSWER

MINISTER OF STATE FOR MINISTRY  OF RURAL DEVELOPMENT AND cot{suMER AFFA|RS, FOOD & PUBLIC DTSTRIBUTTON (sADHVt  NTRAilJAN  JYOTT)

(a)&(b): Presently, there are 756 instafied sugar milts in the country. Out of 756 installed sugar mills, 25O sugar mills are lying closed. The state wise details of closed sugar mills in maior sugar producing  states are as under:

| Sl. No.   | Number of closed su ar mills   |
|-----------|--------------------------------|
| 1         | 38                             |
| 2         | 66                             |
| 3         | 1A                             |
| 4         | 14                             |
| 5         | 22                             |
| 6         | 2                              |
| 7         | I                              |
| 8         | {8                             |
| 9         | 64                             |
|           | 250                            |

Non'operation/crosure  of the sugar mifl is norma y afiributabre  to non'availability  of adequate  sugarcane,  uneconomic size of plant,  lack of modernization, high cost of  working capital, poor recovery from sugarcaner lack of  professional management, overstaffing, financial crunch and lack of adequate irrigation in the catchment  area of sugar milt etc.

(c) to (e): As regards revival  of closed  sugar mills, in case of private sector sugar mills, it is the responsibility of the entrepreneuns  to take necessary steps to operationalise their closed sugar milts, and in case of co'operative/public sector sugar mills, the responsibility  lies with the cooperative societies/respective  state govemments.  The Government of lndia has taken various interventions from time to time viz provided financial assistance  to sugar mitts to offset the cost of cane, financial assistance for maintenance of buffer stocks, financial assistance to facilitate export of sugar, extended soft loans to sugar mills, fixation of minimum selling price of sugar etc. Due to such interventions, sugar sector survived and many sugar mills are prevented  from closure. various state governments have also taken steps to operationalise  the potential non-operational  sugar mills of their states, which are given at Annexure.

## ANNEXURE  REFERRED  TO IN REPLY TO PART (c) TO (e) oF THE UNSTARRED QUESTION NO. 3526 DUE FOR ANSWER  ON IO.OA,2O21 IN LOK SABHA

| State          | Steps taken                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Uttarakhand    | It is proposed to operate one sugar mill of cooperative sector namely Sitarganj for the next sugar season. Govemment of Uttarakhand has decided to give sugar mill in the long term lease and necessary exercise as in progress.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| Maharashtra    | The State Govemment has passed the Resolution on O4.O9.202O and framred criteria to reiuvenate non-operational sugar mifls and its allied units on hire, partnershi p or collaboration basis.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| BihaI          | The Govemment 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 tong term lease through bid process management. Through these bid process management, out of the {5 sugar mills, 2 sugar mills namely Lauriya (West Ghamparan) and Sugauti (East Champaran) have been reconstructed and revived by I{PGL Biofuel Ltd. and they have become operational. Other 5 sugar mills namety Bihta, Motipur, Raiyam, Sanrastipur and Sakri have also been setfled through the bid process, of which Motipur and Ryam is in the process of revival as sugar units and Bhita & $amastipur unit as other industries, through their successful bidders. |
| Andhra Pradesh | ln respect of the Cooperative sugar milts, Group of Ministerc 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 altemate remedies.                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| Karnataka      | There are 5 sick co-operative sugar factories which ?r€ [on. operational. Sugar factories are defunct due to shortage of working capital, administratit e problems, financia! difficutties and other reasons. ln the interest of sugarcane farmers and employees of factories, Govemment of Karnataka has taken a decision to tease out the sick cooperative sugar factories to private entrepreneur on long- term lease under "As is where is" basis. This is present poticy of the State Govemment. In Karnataka 8 cooperative sugar factories have been leased out to private entrepreneur so far. One sugar factory oI public sector and two of cooperative sector have also been proposed for lease; and lease process is under progress.                       |
| Guiarat        | ln the current financial year 2O2O-21 the State Government of Guiarat has sanctioned Iiquidity support loan for.Rs. 25 Grore to Vadodara District Gooperative Sugarcane Growers Union Ltd., to pay sugarcane arrears to the farmers to survive this non operationa! industry. Gujarat Govemment also gives 3O7" share capital contribution of total project cost for new cooperative sugar mill. At present kaveri vibhag sahakara khand udyog mandli and damanganga cooperative sugar industry are under construction and till date the state government sanctioned proportionate share capital as per the resolution.                                                                                                                                              |