Lok Sabha Question No. 113 (STARRED), answered on 2021-02-09
Subject: Outstanding Dues of Sugarcane Farmers
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: Chandeshwar Prasad

## GOVERNMENT OF INDIA

## MINISTRY  OF CONSUMER  AFFAIRS, FOOD & PUBLIG DISTRIBUTION DEPARTMEI{T  OF FOOD AilD PUBLIC DISTRIBUTION

LOK SABHA STARRED  OUESTION NO.{ { 3

TO BE ANSWERED  ON  gth  February,2ozl

## O,UTSTANDING  DUES OF SUGARGANE FARMERS

## *113.  SHRI CHA.NDESHWAR  PRASAD:

Uuill the DISTRIBUTION state: Minister of  GONSUMER  AFFAIRS' FOOD AND PUBLIG ics{Ytrdr rrri,  ur<-u $tt  grffi++ Ffi{ur d+ be pteased  to

- (a)  the amount of dues of sugarcane farmers outstanding against sugar milts during the tast three years and the curent  year, yeaf.wise  and state' wlse;
- (b)  whether the sugar mills are not paying the dues of sugarcane farmerc year-by-year and as a result, the outstanding amount is continuously increasing;  and
- (c)ifso,thestepstakenbytheGovernmenttoensurethepaymentof dues by sugar mills to the sugarcane farmerc on time and the outcome thereof?

## AlISTYER

MINISTERoFRAtLwAYs'GoMMERGE&INDUSTRYANDGoNSUMER AFFAIRS' FOOD & PUBLIG DISTRIBUTION

(sHRr PIYUSH GOYAL)

- (a) to (c): A statement  is laid on the Table of the House'

STATEMENT REFERRED TO lN REPLY To PARTS (a) To (c) oF THE STARRED  qUESTION  NO. *{{3  DUE FOR ANSWER Oil O9.O2.2O2I IN THE LOK SABHA.

- (a) to (c): As per information  received from State Governmentsr the amount of dues of sugarcane farmers outstanding  against sugar mills state-wise during the last three sugar seasons(October  -September)  and the current sugar season 2O2O-21, as on 3l  'Ol  .2O21  ,  is at Annexure.

Excess production of sugar than the consumption demand during last three sugar seasons has resulted in subdued ex-mill prices of sugar which has adversety affected the  liquidity of  sugar mills resulting in accumutation of cane price arrears of farmers. To improve liquidity of sugar mills thereby enablang  them to clear cane price dues of farmerct Gentral Govemment  has taken various measures during the last three sugar seasons  and the current sugar season, which are as under:

## I. SUGAR SEAIiON 2017-18t

- (i) Extended Assistance of Rs.43O crore to sugar mills @Rs.5.5o/quintal of cane erushed for sugar season 2O17-1a to offset the cost of cane.
- (la) Allocated buffer stock of 30 LMT of sugar amongst sugar mills for a period of one year from I st July, 2O18 to 3Oh Juner 2O{ 9 for which Government is  reimbursing carrying cost of  Rs.78O crore towards maintenance  of buffer stock.
- (iii)  Fixed Minimum Selling Price (MSP) of sugar w.e.f 07.O6'20{8 at Rs.29/kg for sate at factory  gate in domestic  market, below which no sugar mill can sell sugar. MSP has further been increased to Rs.3{/Kg.
- w.e.f. 14tr February, 2O19.
- ll. SUGAR SEASON 2018-{9:
- Extended Assistance  to  sugar milts @Rs.{3.88/quintal crushed for sugar season 20{8'{9 to offset the cost of of cane cane
- amounting  to r.bout Rs.3OOO crore.
- Extended Assistance to  sugar mills for  defraying expend'ture towards internal transport, freightr handling and other charges to facilitateexp-i-tofsugarfromthecountryinsugarseason20{8-{9

.........2t

- and reimbursir,g  about  Rs. 9OO crore under this scheme'

- ila.  Extended soft loans amounting to Rs 74O2 crore to sugar mills through banks to  clear cane price arrearsr for which interest subvention of about Rs 5{8 crore @ 7o/o lor one year is being borne by the Government.

## !il. suGAR SEASON 2019-2(J

- (i) Allocated buffer stock of 4O Lakh Metric Tonne (LMT) of sugar amongst sugar mills for a period of one year from l't Augustr 2Ol9 to 3{st July, 2O2O for which Government is reimbursing  carrying cost of Rs.l674 crore towards maintenance  of buffer stock.
- (ii) Providing  assistance to sugar mills @ Rs 'l O448IMT to facilitate export of sugar for expenses on export of 6O LMT of sugar in sugar season 2O1g-2O for which an estimated expenditure of Rs 6268 Cr
- is being borne bY Government.

## tv. CURRENT SUGAR SEASON 2020-21

- (i) Providing  assistance to sugar mills @ Rs 6OOO/MT to facilitate export of sugar for expenses on export of 6O LMT of sugar in sugar seasoa 2O2O-21  for which an estimated expenditure  of Rs 35OO Gr is being borne by Government.

Under the various schemes for sugar sector, funds are credited to the accounts  of farmerc on behalf of sugar mills against their cane dues and balancer if any as credited to the accounts of sugar mills'

with a view to support sugar sector and in the interest of sugarcane farmers,  Government is  encouraging sugar mills to  divett excess sugarcane  & sugar to ethanol. Government has allowed production of ethanot from B-Heavy Molasses, sugarcane iuice,  sugar syrup and sugar; & has also been fixing the remunerative  ex'milt  price of ethanol derived from various feed stocks. To increase ethanol production capacity in the country, Government  is extending  interest subvention of Rs 4687 Grore to sugar mitts/ distitleries against loans availed by them from banks to set up new distitteries  or to expand  their existing capacities.  As the revenues generated from sale of ethanol by sugar mills/ distilleries reach to the accountsofsugarmitlsinlust3weekstimeascomparedtol2.l5months time taken for reatizing revenue from sale of sugar,  production  of ethanol would improve liquidity of sugar mills enabt'ng them to make timely payment of cane dues of sugarcane farmers  '

Payment of cane price to sugarcane  growing farmers by the sugar mills is a continuous  process. ln sugar seasons  2O17-18r 2O1A49  & 2O{9. 20, cane price payable to sugarcane farmers on all lndia basis was Rs. g5{79  crore, Rs. 86723 crore & Rs. 75845 crore respectively.  As a result of various measures taken by the Government, as enumerated abover the cane dues of farmers for sugar seasons 2lJl,,7'18, 2O1A'19 & 2O{9-2O have been reduced to Rs. 199 crore, Rs. 4lO Grore &  Rs. {766 crore respectavelyr as on 31.O1.2O21.

ANI{EXURE

## ANNEXUREREFERREDINREPLYToPARTS(a)To(c)oFTHESTARRED OUESTION NO..I{3 FOR ANSWER  ON O9.O2.2O2'I IN THE LOK SABHA.

## (RS. rN CRORE)

| s. I{o.   | Name of State   | Sugar Season 2017-18   | Sugar Season 2018-19   | Sugar Season 2l,19-2lJ   | Curfent Sugar Season 2O2O- 21.   |
|-----------|-----------------|------------------------|------------------------|--------------------------|----------------------------------|
| 1         | Bi har          | o.{ 8                  | 57.74                  | 84.96                    | 411                              |
| 2         | Haryana         | 0                      | o                      | 4.O8                     | 669.66                           |
| 3         | Punjab          | o                      | 0                      | 137.15                   | 576.19                           |
| 4         | Uttara kh and   | 74.56                  | 104.74                 | o                        | 416.29                           |
| 5         | Uttar Pra desh  | 33.5{                  | o                      | 1406.14                  | 7555.09                          |
| 6         | Andhra Pradesh  | 0                      | 36.73                  | 43,58                    | 90.56                            |
| 7         | Telangana       | 0                      | 0                      | { 1.50                   | 114                              |
| 8         | Gujarat         | 1.50                   | 0                      | o.09                     | 10,44                            |
| I         | Maharashtra     | 27.24                  | 117.91                 | o.,16                    | 2030.31                          |
| t0        | Karnatalia      | o                      | 11.20                  | 49.O{                    | 3585.18                          |
| 11        | Tamil Nadu      | 60.70                  | 74.O4                  | 29.76                    | 56.20                            |
| 12        | Puducherry      | 0                      | o                      | o                        | o                                |
| {3        | Chhattisgarh    | 2.00                   | 6.00                   | o                        | 55                               |
| 14        | Odisha          | 0                      | 0                      | o                        | 22.41                            |
| l5        | Madhya Pradesh  | o                      | o                      | o                        | 257.13                           |
| t6        | Goa             | o                      | 2.O                    | o                        | o                                |
|           | Al! lndia       | r99                    | 41t)                   | 1766                     | 168E3                            |