Lok Sabha Question No. 138 (STARRED), answered on 2016-05-03
Subject: Rise in Sugar Prices
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: SUDHEER GUPTA, SUNIL BALIRAM GAIKWAD

## GOVERNMENT OF INDIA

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

## LOK SABHA

## STARRED QUESTION NO. 138

TO BE ANSWERED ON 03 rd   MAY, 2016

## RISE IN SUGAR PRICES

*138. SHRI SUDHEER GUPTA: DR. SUNIL BALIRAM GAIKWAD:

Will  the  Minister  of  CONSUMER  AFFAIRS,  FOOD  AND  PUBLIC DISTRIBUTION miHkksDrk ekeys] [kk| vkSj lkoZtfud forj.k ea=h be pleased to state:

- (a) the average national factory price of sugar and sugarcane during the last three years and the current year;
- (b) whether the attention of the Government has been drawn to steep rise  in  price  of  sugar  during  the  last  three  months  despite  adequate availability and if so, the details thereof along with the reasons therefor indicating the demand, supply and price of sugar during the said period;
- (c) whether the Government proposes to impose stock limits for sugar in the country;
- (d) if so, the details thereof and the time by which a decision is likely to be taken by the Government in this regard; and
- (e) the other steps taken/being taken by the Government to check the price rise of sugar in the country?

## A N S W E R

MINISTER OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION

(SHRI RAM  VILAS PASWAN)

- (a) to (e): A Statement is laid on the Table of the House.

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STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (e) OF THE STARRED QUESTION NO 138 DUE FOR ANSWER ON 03.05.2016 IN THE LOK SABHA

- (a): The all India average ex-mill price of sugar and the Fair and Remunerative Price  (FRP)  of  sugarcane  during  last  three  sugar  seasons  and  the  current season are as under:-
- (b):  The  prices  of  sugar  in  the  domestic  market  depend  upon  a  number  of factors  viz,  availability  of  sugar,  domestic  demand,  trend  of  international prices, market sentiment etc. The retail prices of sugar in domestic market which were ruling in the range of Rs. 30-32 per Kg upto December, 2015 have steadily increased to Rs. 34-36 per Kg during last three months and show a sudden spurt to Rs. 40-42 per Kg more recently, in some parts of the country. The available stock of sugar during last three months (January to March) was about 246 Lakh MT. Though, there is enough sugar stock and availability to meet domestic demand, certain quarters are indulging in speculative activities and holding their stock in anticipation of a further price rise.
- (c) & (d): Yes, Madam, the Government has decided to impose stock holding limits.

| Season   | Range of all-India average ex-mill price (Rs. per quintal)   | FRP of sugarcane at 9.5% basic recovery (Rs./ per quintal)   |   Additional increase of FRP for every 0.1% point increase in basic recovery |
|----------|--------------------------------------------------------------|--------------------------------------------------------------|------------------------------------------------------------------------------|
| 2012-13  | 2810-3685                                                    | Rs. 170                                                      |                                                                         1.79 |
| 2013-14  | 2420-3300                                                    | Rs. 210                                                      |                                                                         2.21 |
| 2014-15  | 2050-2860                                                    | Rs. 220                                                      |                                                                         2.32 |
| 2015-16  | 2350-3660 (Upto April, 2016)                                 | Rs. 230                                                      |                                                                         2.42 |

(e): The Government is also inter-alia closely monitoring the prices of sugar in the domestic market as well as sales by sugar mills.

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