Lok Sabha Question No. 632 (UNSTARRED), answered on 2016-02-26
Subject: Relief Package to Sugarcane Farmers
Ministry: FINANCE
Asked by: BHAGWANTH KHUBA

## Government of India Ministry of Finance Department of Financial Services

## LOK SABHA Unstarred Question No. 632

To be answered onFebruary26, 2016/Phalguna7, 1937 (Saka)

## Relief Package to Sugarcane Farmers

## Question

632. SHRI BHAGWANTH KHUBA:

Will the Minister of FINANCE be pleased to state:

- (a) whether the Government has any proposal to provide a comprehensive relief package to sugarcane farmers across the country; and
- (b) if so, the details thereof?

## Answer

The Minister of State in the Ministry of Finance (Shri Jayant Sinha)

- (a) & (b): With a view to improving the liquidity position of sugar mills and facilitating timely payments of cane dues of sugarcane farmers, the Central Government has taken the following steps:
-  Working capital loans of Rs.6420 crore were extended with interest subvention for five years under the Scheme for Extending Financial Assistance to Sugar Undertakings, 2014 (SEFASU-2014) .
-  An amount of Rs.284 crore has been released so far under the scheme to provide incentive for raw sugar export during sugar season 2013-14 and 2014-15.
-  Remunerative prices have been fixed for supplies of ethanol to Oil Marketing Companies (OMCs) for blending with petrol; excise duty has been waived on ethanol supplies to OMCs during 2015-16 and blending targets have been scaled up from 5% to 10%.
-  Under the Scheme for Soft Loan to Sugar Sector, an amount of Rs.4212 crore was disbursed and credited to farmers' accounts with interest subvention @ 10% p.a. for one year.
-  A scheme was notified on 2.12.2015 to extend production subsidy @ Rs. 4.50 perquintal of cane crushed to sugar mills to offset the cost of cane and facilitatetimely payment of cane price dues of farmers for sugar season 2015-16. Fundsto be released under the scheme shall be directly credited into farmer'saccounts.



## Government of India Ministry of Finance Department of Financial Services

## DRAFT REPLY (TO BE TYPED IN HALF MARGIN DOUBLE SPACE)

## LOK SABHA Unstarred Question No. 632

To be answered onFebruary26, 2016/Phalguna7, 1937 (Saka)

## Relief Package to Sugarcane Farmers

| Question                                                                                                                                                                                                                                        | Answer                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
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| 632. SHRI BHAGWANTH KHUBA: Will the Minister of FINANCE be pleased to state: (a) whether the Government has any proposal to provide a comprehensive relief package to sugarcane farmers across the country; and (b) if so, the details thereof? | The Minister of State in the Ministry of Finance (Shri Jayant Sinha) (a) & (b): With a view to improving the liquidity position of sugar mills and facilitating timely payments of cane dues of sugarcane farmers, the Central Government has taken the following steps:  Working capital loans of Rs.6420 crore were extended with interest subvention for five years under the Scheme for Extending Financial Assistance to Sugar Undertakings, 2014 (SEFASU- 2014) .  An amount of Rs.284 crore has been released so far under the scheme to provide incentive for raw sugar export during sugar season 2013-14 and 2014-15.  Remunerative prices have been fixed for supplies of ethanol to Oil Marketing Companies (OMCs) for blending with petrol; excise duty has been waived on ethanol supplies to OMCs during 2015- 16 and bending targets have been scaled up from 5% to 10%.  Under the Scheme for Soft Loan to Sugar Sector, an amount of Rs.4212 crore was disbursed and credited to farmers' accounts with interest subvention@10% p.a. for one year.  A scheme was notified on 2.12.2015 to extend production subsidy @Rs. 4.50 perquintal of cane crushed to sugar mills to offset the cost of cane and facilitatetimely payment of cane price dues of farmers for sugar season 2015-16. Fundsto be released under the scheme shall be directly credited into farmer'saccounts. |