Lok Sabha Question No. 3711 (UNSTARRED), answered on 2016-08-09
Subject: Non-Payment of Sugarcane Dues
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: RAMSINH PATALYABHAI RATHWA

## GOVERNMENT OF INDIA

## MINISTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION

## DEPARTMENT OF FOOD AND PUBLIC DISTRIBUTION

LOK SABHA UNSTARRED QUESTION NO. 3711

TO BE ANSWERED ON 9 TH  AUGUST, 2016

## NON-PAYMENT OF SUGARCANE DUES

## 3711. SHRI RAMSINH RATHWA:

Will  the  Minister  of  CONSUMER  AFFAIRS,  FOOD  AND  PUBLIC

DISTRIBUTION miHkksDrk ekeys] [kk| vkSj lkoZtfud forj.k ea=h be pleased to state:

- (a) whether a substantial  amount  of  sugarcane  dues  of  farmers  is  still outstanding despite several incentives/ packages provided to sugar mills by the Government;
- (b) if  so,  the  details  thereof  and  the  reasons  therefor  indicating  the sugarcane dues pending during each of the last three years and the current year  and  action  taken  against  the  defaulting  mills,  State/Union  territorywise;
- (c) the steps taken/being taken to expedite payment of pending dues to the farmers; and
- (d) whether the Committee on sugar/sugarcane sector has made observations/recommendations regarding profitability of mills, clearance of dues and share of farmers in profits earned by the mills, if so, the details
- thereof and action taken thereon?

## A N S W E R

## MINISTER OF STATE FOR  CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION (SHRI C. R. CHAUDHARY)

- (a) & (b): Due to surplus sugar production during the last five consecutive sugar seasons over domestic consumption and depressed sugar prices, the liquidity of the sugar mills have been adversely affected leading to accumulation  of  cane  price  arrears  of  the  farmers.  The  Government  has taken  several  measures  to  improve  the  liquidity  position  of  the  industry thereby  facilitating  clearance  of  cane  price  arrears.  As  on  31.07.2016, Rs.6598 crores are outstanding against the sugar mills for each of the last three years and the current year. State-wise details of cane price arrears for the current sugar season 2015-16, 2014-15 and 2013-14 and earlier seasons is at Annexure.

The Sugarcane (Control) Order, 1966 stipulates payment of cane price within  14  days  of  supply,  failing  which  interest  at  the  rate  of  15%  per annum on amount due for the delayed period beyond 14 days is payable. The powers for enforcing this provision are delegated and vested with the State Governments/UT Administrations who have necessary field formations.  The  Central  Government  has  from  time  to  time  advised  the State  Governments/UTs  to  ensure  timely  payment  of  cane  dues  to  the farmers  and  to  take  action  against  the  defaulting  sugar  mills.  It  was informed  by  the  State  Governments  that  they  have  issued  necessary instruction  to  the  sugar  mills  for  early  clearance  of  cane  price  arrears. Government of Maharashtra and UP have informed that recovery certificates were issued against 15 sugar mills each.

(c): The  Government  of  India  has  taken  several  initiatives  to  help  the sugar industry resolve liquidity problems and thereby facilitate clearance of cane price arrears of farmers:-

- i) Provided incentive of Rs. 483.87 crores on Raw Sugar Export.
2. ii) Extended interest free loan of Rs. 6420 crores under SEFASU.
3. iii)   Facilitated sugar mills for supply of ethanol under Ethanol Blended with  Petrol  Programme  (EBP)  by  fixing  remunerative  price  and waiving off excise duty on supply of ethanol under EBP.
4. iv)   Scheme for Production Subsidy @ Rs.4.50 per quintal cane crushed to offset cane cost notified.

(d): Keeping  in  view  profitability  of  mills,  clearance  of  cane  dues  and share  of  farmers  in  profits  earned  by  the  mills,    Dr.  C.  Rangarajan Committee on de-regulation on sugar sector inter-alia have recommended the  value  sharing  ratio  for  cane  farmers  estimated  to  amount  to  roughly 75%  of the ex-mill value of sugar  alone. States have been requested to consider the recommendations for implementation as they deemed fit. So far,  State  Governments of Maharashtra and Karnataka have passed their State Acts incorporating the revenue sharing formula recommended by the Committee.

****

ANNEXURE  REFERRED  TO  IN  REPLY  TO PART (a) OF THE UNSTARRED QUESTION NO.3711 DUE FOR ANSWER ON 09.08.2016 IN THE LOK SABHA

STATEMENT SHOWING CANE PRICE ARREARS FOR THE CURRENT SUGAR SEASON 2015-16, 2014-15 AND 2013-14 & EARLIER SEASONS (position as on 31.07.2016)

| (Rs. in crores)   | (Rs. in crores)   | (Rs. in crores)            | (Rs. in crores)            | (Rs. in crores)                          | (Rs. in crores)          |
|-------------------|-------------------|----------------------------|----------------------------|------------------------------------------|--------------------------|
| SL. NO.           | STATE             | CANE PRICE ARREARS 2015-16 | CANE PRICE ARREARS 2014-15 | CANE PRICE ARREARS FOR 2013-14 & EARLIER | TOTAL CANE PRICE ARREARS |
| 1                 | PUNJAB            | 226.00                     | 0.00                       | 0.00                                     | 226.00                   |
| 2                 | HARYANA           | 126.00                     | 11.00                      | 0.00                                     | 137.00                   |
| 4                 | UTTAR PRADESH     | 2877.00                    | 57.00                      | 112.00                                   | 3046.00                  |
| 5                 | UTTARAKHAND       | 209.00                     | 0.00                       | 25.00                                    | 234.00                   |
| 6                 | MADHYA PRADESH    | 6.00                       | 0.00                       | 13.00                                    | 19.00                    |
| 7                 | CHHATISGARH       | 1.00                       | 0.00                       | 0.00                                     | 1.00                     |
| 8                 | GUJARAT           | 203.00                     | 0.00                       | 13.00                                    | 216.00                   |
| 9                 | MAHARASHTRA       | 411.00                     | 158.00                     | 70.00                                    | 639.00                   |
| 10                | BIHAR             | 30.00                      | 5.00                       | 40.00                                    | 75.00                    |
| 11                | ANDHRA PRADESH    | 81.00                      | 37.00                      | 0.00                                     | 118.00                   |
| 12                | KARNATAKA         | 108.00                     | 17.00                      | 101.00                                   | 226.00                   |
| 13                | TAMIL NADU        | 1030.00                    | 286.00                     | 273.00                                   | 1589.00                  |
| 14                | ODISHA            | 19.00                      | 0.00                       | 3.00                                     | 22.00                    |
| 15                | WEST BENGAL       | 0.00                       | 1.00                       | 0.00                                     | 1.00                     |
| 16                | PUDUCHERRY        | 10.00                      | 5.00                       | 3.00                                     | 18.00                    |
| 17                | GOA               | 1.00                       | 0.00                       | 0.00                                     | 1.00                     |
| 18                | TELANGANA         | 30.00                      | 0.00                       | 0.00                                     | 30.00                    |
|                   | TOTAL             | 5368.00                    | 577.00                     | 653.00                                   | 6598.00                  |