Lok Sabha Question No. 1376 (UNSTARRED), answered on 2021-07-27
Subject: Self-Reliance in Sugar Production
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: Sadashiv Kisan Lokhande

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## DEPARTMENT  OF FOOD A]{D PUBLTC  DISTRIBUTION

## ,*"ro"*=to"Xu"*1Ti"  No. r 3?6 7O BE AilSWERED  ON27I/HJaILY,aO2I

## SELF.RELIANCE  tN SUGAR PRODUGTION

## tt376. SHR!sADASHtvxtsANLOKHANDE:

Will the Minister  of  GOI{SUMER  AFFA|RS,  FOOD A]tD  pUBLtC DrsrRrBUTrON  nn#tril  arr*, urc-r sir'{  srffif,. Fd-a*  d* o"-o,""""o  ," state!

- (a)  the details of eommon  areas of contention  between  the sugar
- producing  mills and sugarcane  fanners of the country;
- (b)  whether the Government  is taking any steps to sorve the above problems;
- (c) if so, the details  thereof; and
- (d)  the measures  that are being  taken by the Government  in the directaon of making the country setf-retiant in ttre niU of sugar production?

## ANSWER

MINISTER  OF STATE FOR MII{ISTRY  OF RURAL DEVELOPMEI{T  AND coltsuMER  AFFA|RS,  FOOD &  puBLIC  DtsTRtBUTtoN (sADHVr  NTRANJAN  JYOTT)

(a)to(d):  rndia is setf retiant in the production  of sugar. rn a normar sugar season (october'september),  production  of sugar in the country as around 32o'33o Lakh Metric Tonne (LMT) as against the domestic "onJu-piion or 260 LMT which resutts in huge ".rry or", stock of sugar  with sugar  mills. Due to excess availability  of sugai in the country,  the ex-malt prices  of sugar remain subdued resurting  in cash ross to sugar mirts. This excess stock of 60'70 LMT atso reads to btockage  of funds & affects  the raquidity of sugar milts resurting  in accumuration  oi cane price  arrears  of farmers.

With a view to improve  the liquidity position  of sugar mi[s, the Government  has been taking various interJentions  from time to *me viz. provided  assistance  to sugar mirs to offset the cost of cane, fixation of M'nimum serting price  of sugar, extended financiar  assistance  to sugar mi's for maintenance  of buffer stocks, extended  financrat assistance  to sugar mi's to faciritate  export of sugar, extended  soft roans to sugaf mars, etc' As a resurt of these measures,  cane arrears  for sugar seasons  20{7{8, 20{8.{9  and 2O{9-2O  came down to Rs. 193 crr 4O3 cr and Rs. i42 cr respectively  from peak arrears  of about Rs. 23OOO- 2SOOO  crore.

ln order  to find a tong term solutaon  to deat with the probtem  of excess sugar, Governm€rrt  is encouraging  sugar mirts to divert excess sugarcane  to ethanor  which is brended  with petror,  which  not onty serves as a green  fuer but atso saves foreign exchange  on account  of crude oir import' Revenue generated  from sare of ethano! by mirs hetps sugar  mirs in clearing  cane price  dues  of farmers. rn past  three sugar seasons  2ol718r 2018-19 and 2Ol9-2O, about Rs. 22OOO  cr revenue  was generated  by sugar mi[s/distifleries  from sare of ethano!  to oi! Marketin;  co;;anies (oMcs) which has herped in crearing cane price  arreans of farmerc. rn current ethanor suppry year (December-  ovember),  about Rs. 15000 cr revenue  is rikery  to be generated  by sugar mirs from sare of ethanot  to OMGs.

ln last 2 sugar seasons  2ot8-{9  & 2o1g-2o,  about 3.32 LMT & 9.26 LMT of sugar has been diverted  to ethanot. rn current sugar season 202021, more than 2O LMT is f ikely to be diverted.  In the next s eason 2021-22, about 35 LMT of sugar is estimated  to be daverted;  & by 2025 about 60 LMT of excess  sugar i$ targeted  to be diverted  to ethanor, which is likery  to solve the probtem  of excess sugarcane/ sugar.