Lok Sabha Question No. 1099 (UNSTARRED), answered on 2023-07-26
Subject: Payment to Sugarcane Farmers
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: Nama Nageswara Rao

## GOVERNMENT OF INDIA

## MINISTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION DEPARTMENT OF FOOD AND PUBLIC DISTRIBUTION LOK SABHA

## UNSTARRED QUESTION NO.1099 TO BE ANSWERED ON 26TH JULY,  2023

## PAYMENT TO SUGARCANE FARMERS

## 1099.  SHRI NAMA NAGESWARA  RAO:

Will the  Minister of  CONSUMER  AFFAIRS,  FOOD AND  PUBLIC  DISTRIBUTION

3qqtnI wM,  @rw Bit WT++f+qT fqTwr +qt be pleased  to  state:

- (a) whether the Government is aware that the timely payment to sugarcane farmers
- are not being made by the sugar factories as the factories  are reeling under losses;
- (b) if so, the measures taken by the Government to sort out the issue and to fill  the
- viability  gaps; and
- (c) the details of the outstanding dues to the sugarcane farmers for the past five years, State and UT-wise?

## ANSWER

## MINISTER OF STATE FOR MINISTRY  OF RURAL DEVELOPMENT AND CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION

(SADHVI NIRANJAN JYOTI)

(a) to (b):  As per the information received from the State Governments, payment to sugarcane farmers are being released by the sugar factories  and cane arrear is steadily reducing. Financial position of sugar mills have also improved significantly resulting in production of sugar by more mills in last 3 years.

With a view to facilitate  payments of outstanding dues to the sugarcane farmers, the Central Government has taken various steps in the form of policy  interventions for Sugar

Sector in recent years, which are as under:

- Central Government fixes  Fair  and Remunerative Price (FRP) of sugarcane having regard to  the factors mentioned in  Clause  3(1)  of  the  Sugarcane (Control) Order,
- 1966 to ensure a guaranteed price to sugarcane growers.
- Minimum Selling Price of sugar was fixed to prevent fall  in ex-mill prices of sugar & accumulation of cane arrears (initially  at t  29/ kg  w.e.f  07-06-2018; revised to
- t  31/kg w.e.f.  14-02-2019).
- Financial assistance of more than t  18,000 crore extended to  mills resulting in clearance of farmers' dues during 7 years i.e. sugar season 20lzb15 to 2020-21.
- ·
- Diversion of surplus sugar to production of ethanol led to improved financial conditions of sugar mills. As a result, they are able to clear cane dues early.

As a result of these measures, significant reduction has been seen in cane price arrears. About 99.9% of cane dues up to sugar seasons 2020-21 have been cleared. For the previous sugar season 2021-22, more than 99.9% cane dues have been cleared and in the current Sugar Season 2022-23, about 92.34 % cane dues are cleared as on 20.07.2023.

- (c): A statement showing outstanding dues to the sugarcane farmers for the past five years, State and UT-wise is at Annexure.

## ANNEXURE SABHA REFERRED TO IN REPLY TO PART (c)  OF THE UNSTARRED QUESTION NO. 1099  DUE FOR ANSWER ON 26.07.2023  IN THE LOK

|                          | SS          | SS   | SS    |       |         |       |       |    |       |       |     |       |        |      |
|--------------------------|-------------|------|-------|-------|---------|-------|-------|----|-------|-------|-----|-------|--------|------|
| State                    | Payable     |      |       |       |         |       |       |    |       |       |     |       |        |      |
| Uttar 33048              |             |      |       |       |         |       |       |    |       |       |     |       |        |      |
| Maharashtra 23414        | 23394       | 20   | 14157 | 14157 | 32145 0 | 32086 |       | 59 | 43313 | 43281 | 32  | 35524 | 35071  | 453  |
| Karnataka 12093          | 12089       | 4    | 10636 | 10636 | 0       | 13519 | 13519 | 0  | 20632 | 20632 | 0   | 19730 | 19603  | 127  |
| Gujarat 3199             | 3199        | 0    | 2973  | 2973  | 0       | 3149  | 3149  | 0  | 3891  | 3891  | 0   | 3363  | 1712   | 1651 |
| Tamil Nadu 2839          | 2766        | 73   | 2418  | 2418  | 0       | 2672  | 2672  | 0  | 3543  | 3543  | 0   | 3708  | 3564   | 144  |
| Bihar 2393               | 2343        | 50   | 2039  | 2000  | 39      | 1440  | 1436  | 4  | 1578  | 1578  | 0   | 2153  | 2139   | 14   |
| Haryana 2289             | 2289        | 0    | 2374  | 2374  | 0       | 2628  | 2628  | 0  | 2727  | 2727  | 0   | 2862  | 2596   | 266  |
| Punjab 2399              | 2399        | 0    | 1740  | 1738  | 2       | 1881  | 1875  | 6  | 2308  | 2274  | 34  | 2572  | 2492   | 80   |
| Madhya 1212              | 1212        | 0    | 877   | 877   | 141 0   | 141   |       | 0  | 1839  | 1839  | 0   | 1771  | 1/ VAI | /    |
| Pradesh Uttarakhand 1170 | 1062        | 108  | 1316  | 1316  | 0       | 1219  | 1219  | 0  | 1531  | 1528  | 3   | 1697  | 1640   | 57   |
| Andhra 1499              | 1477        | 22   | 876   | 840   | 36      | 635   | 635   | 0  | 662   | 662   | 0   | 659   | 636    | 23   |
| Telangana 734            | 734         | 0    | 415   | 415   | 0       | 365   | 365   | 0  | 662   | 662   | 0   | 805   | 791    | 14   |
| Chhattisgarh             | 315 315     | 0    | 208   | 208   | 0       | 190   | 190   | 0  | 264   | 264   | 0   | 2     |        | 15   |
| Others                   | 119 119     | 0    | 4     | 4     | 0       | 77    | 77    | 0  | 1     |       | 0   | 5     | 35     |      |
| Total                    | 86723 86446 | 277  | 75931 | 75854 | 77      | 9     |       | 73 | 1     |       | 115 | 1     | 5      |      |