Lok Sabha Question No. 2665 (UNSTARRED), answered on 2015-12-15
Subject: Sugarcane Subsidy
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: RAHUL RAMESH SHEWALE, VINAYAK BHAURAO RAUT, C. N. JAYADEVAN, OM PRAKASH YADAV, SANTOSH AHLAWAT, SANGANNA AMARAPPA KARADI, SUMEDHANAND SARASWATI, C.R. CHAUDHARY, SHRIKANT EKNATH SHINDE, GOPALAKRISHNAN CHINNARAJ, M. UDHAYAKUMAR

## GOVERNMENT OF INDIA

## MINISTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION

## DEPARTMENT OF FOOD AND PUBLIC DISTRIBUTION

## LOK SABHA

## UNSTARRED QUESTION NO. 2665 TO BE ANSWERED ON 15 TH   DECEMBER, 2015

## SUGARCANE SUBSIDY

2665. SHRI RAHUL SHEWALE:

SHRI VINAYAK BHAURAO RAUT:

SHRI C.N. JAYADEVAN:

SHRI OM PRAKASH YADAV:

SHRIMATI SANTOSH AHLAWAT:

SHRI SANGANNA AMARAPPA:

SHRI SUMEDHANAND SARSWATI:

SHRI C.R. CHAUDHARY:

DR. SHRIKANT EKNATH SHINDE:

DR. C. GOPALAKRISHNAN:

ADV. M. UDHAYAKUMAR:

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  the  Government  has  recently  decided  to  provide  subsidy directly to the sugarcane farmers, if so, the details thereof and the benefits likely to  accrue to the sugarcane farmers therefrom;
- (b) whether the said move is likely to lead to an increase in export of sugar, if so, the details thereof;
- (c) whether the Government has assessed its impact on the sugar prices in the domestic market, if so, the details and the outcome thereof;
- (d) the  corrective  steps  proposed  to  ensure  adequate  availability  and control prices of sugar in the domestic market; and
- (e) whether  sugar  export  subsidy  was  given  to  millers  in  the  previous two seasons to help them clear sugarcane dues to the farmers, if so, the details thereof and the extent to which the sugarcane dues were cleared by this subsidy?

## A N S W E R MINISTER OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION

## (SHRI RAM  VILAS PASWAN)

- (a) The Central government has notified a scheme on 2.12.2015 to extend production subsidy @ Rs. 4.50 per quintal to sugar mills  to offset the cost of  cane and facilitate timely payment of cane price dues of farmers for sugar season 2015-16. Funds released under the scheme shall be directly credited  into  farmers'  accounts.  The  scheme  is  likely  to  improve  the liquidity position of sugar mills enabling them to make timely payment of cane price dues of farmers.
- (b): Yes, Madam. Export of sugar is likely to increase as benefit of the production subsidy scheme is contingent on the mills achieving at least 80% of their  export  targets  notified  under  mill-wise  Minimum  Indicative Export Quota (MIEQ) scheme by the Government.
- (c): Evacuation  of  surplus  stocks  of  sugar  through  export  is  likely  to improve the price sentiments in the domestic market.
- (d): With an opening stock of 90 LMT  and  the estimated sugar production of 260 LMT, the availability of sugar during the current sugar season  2015-16  would  be  sufficient  to  meet  the  estimated  domestic consumption of 260 LMT. Due to sufficient availability of sugar, prices of sugar in domestic market are likely to remain at reasonable level.
- (e): The Government has provided incentive for marketing and promotion services of raw sugar production targeted for export during sugar season 2013-14  at  an  average  incentive  rate  of  about  Rs.  3100  per  MT.  The incentive  scheme  was  continued  for  sugar  season  2014-15  at  uniform incentive rate of Rs. 4000 per MT. Incentive amounting to Rs. 280 crore has  been  disbursed  under  the  scheme  and  as  per  provisions  of  the scheme it has been used for payment of cane price dues of farmers.

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