Lok Sabha Question No. 2692 (UNSTARRED), answered on 2016-08-02
Subject: Sugar Mills
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: RAOSAHEB PATIL DANVE

## GOVERNMENT OF INDIA

## MINISTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION

## DEPARTMENT OF FOOD AND PUBLIC DISTRIBUTION

## LOK SABHA UNSTARRED QUESTION NO. 2692

TO BE ANSWERED ON 2 ND  AUGUST, 2016

## SUGAR MILLS

## 2692. SHRI RAOSAHEB DANVE PATIL:

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 number of sugar mills in the country are running into losses and if so, the reasons therefor along with the corrective measures taken by the Government to strengthen sugar industry  during last three years;
- (b) whether the sugar industry has sought changes in the sugar policy to
- overcome these losses and clear cane arrears; and
- (c) if  so,  the  details  thereof and the response of the Government thereto indicating the cane arrears pending as on date, State and sector-wise?

## A N S W E R

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

- (a)  Due to surplus production during last four consecutive sugar seasons and  depressed  sugar  prices,  the  financial  health  of  the  sugar  mills  have been  adversely  affected.  The  Government  of  India  has  taken  several initiatives  to  help  the  sugar  industry  to  resolve  liquidity  problems  and thereby facilitate clearance of cane price arrears of farmers:-
- (i) Enhanced import duty to 40% to discourage imports.
- (ii) Working capital loan of about Rs.6100 Cr. under SEFASU has been extended to sugar mills. Interest subvention of about Rs.2750 Cr. on loan to Sugar sector being borne by the Government.
- (iii) Provided incentive on Raw Sugar Export during 2013-14 and 201415 sugar seasons for evacuation of excess stocks of sugar in the country.
- (iv) Extended Soft Loan of Rs.4305 Cr. to improve liquidity position of the sugar mill enabling them clearance of cane price arrears.

- (v) Facilitated  supply  of  Ethanol  under  Ethanol  Blending  Program (EBP)  by  fixing  remunerative  price  of  ethanol  and  waiving  off excise duty on supply of ethanol for sugar season 2015-16.
- (vi) Providing  performance  based  production  subsidy  @  Rs.  4.50  per quintal of cane crushed by sugar mills to offset cane cost.

(b) and (c) The apex body of sugar industry Indian Sugar Mills Association(ISMA) has requested the Government to adopt a rationalized cane price policy linking cane price to sugar price. The request of ISMA has been forwarded to State Government for their consideration / adoption.

` State  and  Sector-wise  details  of  pending  cane  price  arrears  as  on 26.07.2016 on Fair and Remunerative Price/ State Advised Price basis is at Annexure.

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## Annexure

ANNEXURE REFERRED TO IN REPLY TO PARTS (b) & (c) OF THE UNSTARRED QUESTION NO. 2692 DUE FOR ANSWER ON 02.08.2016 IN THE LOK SABHA

| STATEMENT SHOWING STATE WISE, SECTOR-WISE CANE PRICE ARREARS FOR SUGAR SEASON 2015-16 (AS ON 26.07.2016)   | STATEMENT SHOWING STATE WISE, SECTOR-WISE CANE PRICE ARREARS FOR SUGAR SEASON 2015-16 (AS ON 26.07.2016)   | STATEMENT SHOWING STATE WISE, SECTOR-WISE CANE PRICE ARREARS FOR SUGAR SEASON 2015-16 (AS ON 26.07.2016)   | STATEMENT SHOWING STATE WISE, SECTOR-WISE CANE PRICE ARREARS FOR SUGAR SEASON 2015-16 (AS ON 26.07.2016)   | STATEMENT SHOWING STATE WISE, SECTOR-WISE CANE PRICE ARREARS FOR SUGAR SEASON 2015-16 (AS ON 26.07.2016)   |
|------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------|
| (RUPESS IN CRORES)                                                                                         | (RUPESS IN CRORES)                                                                                         | (RUPESS IN CRORES)                                                                                         | (RUPESS IN CRORES)                                                                                         | (RUPESS IN CRORES)                                                                                         |
| STATE                                                                                                      | PUBLIC                                                                                                     | COOPERATIVE                                                                                                | PRIVATE                                                                                                    | TOTAL                                                                                                      |
| PUNJAB                                                                                                     | 0                                                                                                          | 129.95                                                                                                     | 96.52                                                                                                      | 226.46                                                                                                     |
| HARYANA                                                                                                    | 0                                                                                                          | 102.24                                                                                                     | 24.07                                                                                                      | 126.31                                                                                                     |
| UP                                                                                                         | 0                                                                                                          | 0                                                                                                          | 3041.00                                                                                                    | 3041.00                                                                                                    |
| UTTARAKHAND                                                                                                | 32.70                                                                                                      | 90.82                                                                                                      | 87.70                                                                                                      | 211.22                                                                                                     |
| MADHYA PRADESH                                                                                             | 0                                                                                                          | 4.11                                                                                                       | 2.23                                                                                                       | 6.34                                                                                                       |
| CHATTISGARH                                                                                                | 0                                                                                                          | 1.01                                                                                                       | 0                                                                                                          | 1.01                                                                                                       |
| GUJARAT                                                                                                    | 11.20                                                                                                      | 167.93                                                                                                     | 23.64                                                                                                      | 202.77                                                                                                     |
| MAHARASHTRA                                                                                                | 0                                                                                                          | 390.34                                                                                                     | 103.39                                                                                                     | 493.74                                                                                                     |
| BIHAR                                                                                                      | 0.03                                                                                                       | 0                                                                                                          | 29.79                                                                                                      | 29.82                                                                                                      |
| ANDHRA PRADESH                                                                                             | 0                                                                                                          | 20.18                                                                                                      | 60.51                                                                                                      | 80.69                                                                                                      |
| KARNATAKA                                                                                                  | 0                                                                                                          | 83.27                                                                                                      | 101.76                                                                                                     | 185.03                                                                                                     |
| TAMILNADU                                                                                                  | 63.65                                                                                                      | 192.16                                                                                                     | 774.33                                                                                                     | 1030.14                                                                                                    |
| ODISHA                                                                                                     | 0                                                                                                          | 19.41                                                                                                      | 0                                                                                                          | 19.41                                                                                                      |
| WEST BENGAL                                                                                                | 0                                                                                                          | 0                                                                                                          | 0                                                                                                          | 0                                                                                                          |
| PUDUCHERRY                                                                                                 | 0                                                                                                          | 9.70                                                                                                       | 0                                                                                                          | 9.70                                                                                                       |
| GOA                                                                                                        | 0                                                                                                          | 1.16                                                                                                       | 0                                                                                                          | 1.16                                                                                                       |
| TELANGANA                                                                                                  | 0                                                                                                          | 0                                                                                                          | 30.35                                                                                                      | 30.35                                                                                                      |
| ALL INDIA TOTAL                                                                                            | 107.58                                                                                                     | 1212.28                                                                                                    | 4375.29                                                                                                    | 5695.15                                                                                                    |

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