Lok Sabha Question No. 215 (STARRED), answered on 2021-08-03
Subject: Cooperative Sugar Factories
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: Sanjay(Kaka) Ramchandra Patil

## MINISTRY  OF GONSUMER AFFAIRS,  FOOD & PUBLIC DISTRIBUTION

## GOVERNMENT OF INDIA DEPARTMENT OF FOOD AND PUBLIC DISTRIBUTION

## LOK SABHA STARRED  OUESTION NO.2I5 TO BE ANSWERED  ON 3RD AUGUST, 2O2{

## GOOPERATIVE  SUGAR FACTORIES

## *2I5, SHRI SAN.JAY  KAKA PATIL:

Will the Minister of GONSUMER AFFAIRS, FOOD AilD PUBLIG DISTRIBUTION  StTs!#il TIrd, rrrd[{r sil{ grffi6, Fif,{sr  d+ be pteased to state:

- (a)  whether the Government is formulating any new policy for the revival of cooperative sugar factoriesl
- (b)  if so, whether the Government  has allocated any fund for revival of aforesaid sugar factoriesl
- (c) if so, the details thereof;
- (d)  whether the Government has given any instructions to the State Govemments to provide the list of financially  poor cooperative sugar factoriesl  and
- (e) if so, the dctails thereof?

ANSUYER MINISTER OF GOMMERGE & INDUSTRY, CONSUMERAFFAIRS, FOOD & PUBLIG DISTRIBUTION  AND TEXTILES

(sHRr PTYUSH GOYAL)

- (a) to (e): A statement  is laid on the Table of the House.

STATEMENT  REFERRED  To IN REPLY TO PARTS (a) TO (e) OF THE STARRED OUESTION NO.  *2I5  DUE FOR Ai{SWER ON O3.O8.2O2{ IN THE

LOK SABHA.

(a) to (e): The Gentral Government with a  view to  encourage setting up of new sugar mills in the country has de-licensed the sugar industry. Now, it  is the responsibility of the concerned  cooperative society to take necessary steps to re-open/revive the closed sugar mills of the cooperative sector.

ln a normal sugar season (October-September),  production of sugar in the country is around 32O-33O Lakh Metric Tonne (LMT) as against the domestic  consumption of 26O LMT which results in huge carry over stock of sugar with sugar mills. Due to excess availability of sugar in the country,  the ex-mill prices of sugar remain subdued resulting in cash loss to sugar mills. This excess stock of 60-70 LMT also leads to blockage  of funds & affects the liquidity of sugar mills resulting in accumulation  of cane price arrears of farmers. Therefore, with a view to improve the liquidity position  of sugar mills, the Govemment  has been taking various interventions from time to time viz. provided assistance to sugar mills to offset the cost of cane, fixation of Minimum Selling Price of sugar, extended financia! assistance  to sugar mills for maintenance of  buffer stocks, extended financial assistance to sugar mills to facilitate export of sugar, extended  soft loans to sugar mills, etc. As a result of these measures, cane arrears for sugar seasons 2017-18, 2O'18-19 and 2O{9-20 came down to Rs. {93 crr 4Ol cr and Rs. 142 cr respectively from peak arrears of about Rs. 23OOO- 28O0O crore.

ln addition  to the above measures, as a long term solution  to deal with the problem of excess sugar, Government is encouraging  sugar mills to divert excess sugarcane to ethanol which is blended with petrol, which not only serves as a green fuel but also saves foreign exchange on account of crude oil import. Revenue  generated from sale of ethanol by mills helps sugar mills in clearing cane price dues of. farmers. !n past three sugar sea$ons 2O17-18r 20{8-{9 and 2O{9.2Or about Rs. 22OO0 cr revenue was generated by sugar mills/distilleries from sale of ethanol to Oil Marketing Companies (OMGs) which has helped in clearing cane price arrears  of farmers. In current ethanol supply year (December-  ovember), about Rs. {5OOO cr revenue  is tikely to be generated by sugar mills from sale of ethanol  to OMGs.