Lok Sabha Question No. 5203 (UNSTARRED), answered on 2025-04-02
Subject: Fair and Remunerative Price of Sugarcane
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: Shri Bajrang Manohar Sonwane

## GOVERNMENT OF INDIA

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

## LOK SABHA

UNSTARRED QUESTION NO. 5203

TO BE ANSWERED ON 2ND APRIL, 2025

## FAIR AND REMUNERATIVE PRICE OF SUGARCANE

## 5203. SHRI BAJRANG MANOFIAR SONWANE:

Will  the Minister of CONSUMER AFFAIRS, FOOD AND  PUBLIC DISTRIBUTION be pleased to  state:

- (a) whether the Government is aware that the continuous increase in the Fair and Remunerative Price  (FRP) of  sugarcane without  a  corresponding increase in  the Minimum Selling Price (MSP) of  sugar and ethanol is putting sugar mills  in financial  distress  and if  so, the details thereof;
- (b) whether the Government has made any assessment of the impact of this  imbalance on the sustainability  of the sugar industry;
- (c) if  so, the details thereof;
- (d) whether the Government has any plan to increase the MSP of  sugar and ethanol in proportion to the increasing FRP to  ensure the survival of  the sugar industry and timely payment to farmers;
- (e) if  so, the details thereof; and
- (f) the steps being taken to assist sugar mills  in managing their financial viability  while ensuring fair  returns to sugarcane farmers?

## ANSWER

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

(SHRIMATI NIMUBEN JAYANTIBHAI BAMBHANIYA)

(a) to (c): At present, all  India  average ex-mill price  of  sugar is  at  a  reasonable level. Further, the sugar mills  across the country are able to meet the cost of production of sugar.

In  addition to  the realization from sugar  sale,  various bi-products such  as  cane  bagasse, cane molasses and press mud are also adding to the revenue of  sugar mills.  Considering the cost of  cane at current level of  FRP and conversion cost of sugar, there is sufficient  margin of profitability  of sugar mills across the country.

In order  to  liquidate excess  stock  and  to  maintain ex-mill sugar  price at  reasonable level, Government of  India has allowed export of  10 LMT  Sugar during the current Sugar Season. The allocation of  10 1\_MT export  VIOLa will  not  only  enhance the liquidity of  the sugar mills  across the country but will  also help in making timely payment of cane dues to sugarcane farmers. Government has also revised the price of  ethanol made from  C heavy molasses recently .

Interests of  all  the three major  stakeholders,  consumers, farmers and sugar mills  have been protected by the Government by tirnely policy  interventions.

(d) & (e):  Vari6us rQpfesentations/suggqstions  have  bien received from sugar  industry Associations and stakeholders to increase the MSP of  Sugar. Government is  consulting with other concerned Minjstries/Departments and seeking comments thereon.

(f): Government  of India  has made consistent efforts  to ensure timely  payment  of cane dues to  farmers which  has resulted in  ens FIring \_99.9% payment of  cane dues to  farmers upto previous 2023-24 sugar season. For Current Sugar Season 2024-25 more than 83% of  cane dues has been cleared  as on 21.03.2025 .

Further, with  a view  to  improve the liquidity  position of sugar mills  and to enable them to  make timely  payment of  cane dues of  farmers, Central GOvernment had taken various measures in recent years which are as under:-

- (a) Diversion  of surplus sugar to production of ethanol led to improved financial conditions of sugar mills.
- (b) Export of  sugar allowed so that additional revenue may be generated for  sugar mills which  ultimately  enabled them to make timely  cane payments to farmers.
- (.): Financial assistance of  more than Rs.16500 crore extended to  mills  resulting in clearance of farmers' dues during 2014-2021.

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