Lok Sabha Question No. 2625 (UNSTARRED), answered on 2024-12-11
Subject: Decline of Sugar Production
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: Shri Vijayakumar Alias Vijay Vasanth

## GOVERNMENT OF INDIA MINISTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION

## DEPARTMENT OF FOOD AND PUBLIC DISTRIBUTION

## LOK SABHA

UNSTARRED QUESTION NO.2625 TO BE ANSWERED ON 11 TH DECEMBER, 2024

## DECLINE  OF SUGAR PRODUCTION

## 2625. SHRI VIJAYAKUMAR ALIAS VIJAY VASANTH :

Will the Minister of CONSUMER  AFFAIRS,  FOOD  AND PUBLIC DISTRIBUTION WIIm WT& VH 3+{ ITT#gfiq fhBaT IHt b, pl''d  t, ,t,t'

- (a) the reasons for 44 percent decline in sugar production in the initial  six weeks of the 2024-25 season along with  the details of measures to be taken by the Government to address the delay in  crushing operations by  sugar mills;
- (b) the reasons due to which  only  144 sugar mills  operational as compared to 264 during the last year;
- (c) whether the  Government provides incentives for mills to commence  crushing operations, if  so, the  details thereof  and the  details of  sugar production  in  Maharashtra, Karnataka and Uttar Pradesh;
- (d) the manner in which the Government support States facing significant production declines and the details of the estirnated impact of reduced sugar production on the industry and economy;
- (e) whether the Government propose to import sugar to meet domestic demand and if  so, the details thereof;
- (f) the manner in which the Government proposes to address the long-term decline in sugar production  and whether the Government has any outline  strategies to support sugar mills farmers; and
- (g) if so, the details thereon

## ANSWER

MINISTER OF STATE FOR MINISTRY  OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION

(SHRIMATI NIMUBEN JAYANTIBHAI  BAMBHANIYA)

- (a): The Sugar Season (Oct-Sept) starts from  1;t of  October of every year; however the crushing starts as per the maturity  of  sugarcane crop.  In  the  states of  Maharashtra  and Karnataka, the sugarcane growth is  slow due to  the paucity of  water and it  will  take more time to  mature. Therefore, to avoid the harvest of immature sugarcane. both Maharashtra  and Karnataka States have decided that the crushing operation for  the year 2024-25 should commence from November 15th onwards. The decision of  commencing the sugar factories late will  help both sugar factories as well as sugarcane farmers by way of getting higher sugar recovery and sugarcane productivity.

As the crushing has been started in most of the States, the sugar production is expected to be sufficient  to cater the domestic demand.

- (b): As on 4.12.2024, 405 sugar mills  have started crushing operation and more sugar mills are in process of starting their  crushing operations.
- (c): The Central Government does not provide any incentive for mills to commence crushing operatIon.

Sugar Production during  current 2024-25 sugar season, upto 4.12.2024. in  Maharashtra, Karnataka and Uttar Pradesh is as under:-

| State         |   Production in LMT |
|---------------|---------------------|
| Maharashtra   |                7.45 |
| Karnataka     |                7.1  |
| Uttar Pradesh |               14.23 |

- (d): Sugar production in the country is sufficient to meet the domestic consumption demand.
- (e): No  Sir.
- (f) & (g): Sugar production in the country is sufficient to  cater the domestic requirement.  To liquidate excess stocks and to improve the liquidity  position of sugar mills  enabling them to make timely  payment of  cane dues of farmers, the Government has taken various short term interventions hom  time to time till  Sugar Season 2020-21 viz. provided assistance to sugar mills  to offset the cost of  cane,  extended financial assistance  to  sugar  nails for maintenance  of  buffer stocks,  extended financial  assistance to  sugar mills  to  facilitate  export of  sugar, extended soft loans to  sugar mills, fixation of  Minimum Selling Price of  sugar etc. and interest subvention schemes to sugar mills/distilleries  to enhance their ethanol production capacity, etc upto Sugar Season 2021-22.

Government is encouraging sugar mills/distilleries  to divert excess sugar into ethanol, which would solve the problem of high inventories of  sugar, improve liquidity  of mills  thereby help in timely  payment  of cane dues of farmers.

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