Lok Sabha Question No. 320 (STARRED), answered on 2015-08-11
Subject: Sugarcane Dues
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: RAVINDRA KUSHAWAHA, RAVINDRA VISHWANATH GAIKWAD

## MINISTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION

## GOVERNMENT OF INDIA DEPARTMENT OF FOOD AND PUBLIC DISTRIBUTION

## LOK SABHA STARRED QUESTION NO. 320

## TO BE ANSWERED ON 11TH AUGUST, 2015

## SUGARCANE DUES

*320. SHRI RAVINDER KUSHAWAHA:

PROF. RAVINDRA VISHWANATH 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) whether a huge amount of sugarcane dues are outstanding against the sugar mills, if  so,  the  details  thereof  and  the  steps  taken  for  clearing  the dues, State-wise;
- (b) whether the States have sought any assistance/package for clearance of  sugarcane  dues,  if  so,  the  details  thereof  and  the  response  of  the Government thereto, State-wise;
- (c) whether the sugar industry has sought assistance like export subsidy and restructuring of debts to make  the mills viable and clear the outstanding sugarcane dues, if so, the details thereof and the response of the Government thereto; and
- (d) whether  the  mills  have  not  made  the  payments  despite  availing benefits, violating the directives of the court and conditions of the financial package  given  by  the  Government,  if  so,  the  details  thereof  and  the corrective  action,  including  legal  proceedings  taken  or  proposed  to  be taken against sugar mills?

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

(SHRI RAM  VILAS PASWAN)

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

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## STATEMENT REFERRED TO IN REPLY TO PARTS (a) to (d) OF THE STARRED QUESTION NO. *320 DUE FOR ANSWER ON 11.08.2015 IN THE LOK SABHA

- (a):   A statement showing state-wise amount of outstanding sugarcane dues pending  against  the  sugar  mills  as  on  31 st July,  2015,  is  at  Annexure-I.  In order  to  increase  the  liquidity  of  the  sugar  mills  and  facilitate  payment  of dues  to  the  sugarcane  farmers,  the  Central  Government  has  taken  the following steps:-
- i. Working  capital  loan  amounting  to  Rs.  6400  crores  with  interest subvention has been disbursed by banks  to sugar mills under the scheme for extending financial assistance to the sugar undertakings (SEFASU 2014), for sugar season   2013-14.
- ii. Providing  incentive  for  production  and  export  of  raw  sugar  during the sugar seasons 2013-14 and 2014-15.
- iii. Extending  soft  loan  of  Rs.  6000  crore  from  banks  with  interest subvention and moratorium for one year for sugar season 2014-15.
- iv. Smoothened the supply chain procedure   for Ethanol Blending with Petrol (EBP) Programme and fixed its remunerative price.
- v. Waived  excise  duty  on  ethanol  to  be  supplied  for  EBP  in  2015-16 sugar season.
- vi. Import Duty increased from 25% to 40%.
- vii.  Processing time under Advance Authorization Scheme reduced from 18  months  to  6  months  to  prevent  apprehended  leakage  in  the domestic market.
- viii.  The  'Duty  Free  Import  Authorization'  scheme  (DFIA)  for  sugar  has been withdrawn to prevent possible leakages.
- (b): Assistance has been sought by several States for interventions so as to clear  cane  price  arrears.  As  indicated  in  reply  to  part  (a)  above,  Central Government has taken various steps to infuse liquidity in the sugar industry and facilitate payment of cane dues arrears.

(c):   The sugar industry through its Associations inter-alia sought assistance in the form of export subsidy for the sugar season 2014-15. As indicated in reply  to  part  (a)  of  the  question,  the  Central  Government  has  already extended the scheme for providing incentive for production and export of raw sugar  for  the  sugar  seasons  2014-15.  Requests  regarding  restructuring  of debt  in  the  form  of  extending  the  moratorium  period  under  the  SEFASU scheme  have  also  been  received. However,  under  the  scheme,  the moratorium  period  extends  up  to  September,  2016.  The  demand  for  its extension is, thus, pre-mature.

(d):   The Government has taken all possible steps to facilitate payment of cane dues of farmers. The cane price arrear is steadily  reducing. To ensure that  the  assistance  provided  by  the  Government  has  been  utilized  for clearance of sugarcane dues of farmers, sugar mills are required to submit utilization certificates certified by the State Governments. The loan amount availed by sugar mills under soft loan scheme, is directly transferred   into accounts of farmers. Further, 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  the  necessary field  formations  and  take  appropriate  actions  from  time  to  time  to  ensure payment of cane dues.

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## ANNEXURE-I

ANNEXURE  REFERRED  TO  IN  REPLY  TO  PART  (a)  OF  THE  STARRED QUESTION NO.320 DUE FOR ANSWER ON 11.08.2015 IN THE LOK SABHA STATEMENT SHOWING CANE PRICE ARRERS FOR CURRENT SUGAR SEASON AND LAST THREE SUGAR SEASONS

| Rs. in crores (Position as on 31.07.2015)   | Rs. in crores (Position as on 31.07.2015)   | Rs. in crores (Position as on 31.07.2015)   | Rs. in crores (Position as on 31.07.2015)   | Rs. in crores (Position as on 31.07.2015)   | Rs. in crores (Position as on 31.07.2015)   |
|---------------------------------------------|---------------------------------------------|---------------------------------------------|---------------------------------------------|---------------------------------------------|---------------------------------------------|
| SL. NO.                                     | STATE                                       | CANE PRICE ARREARS 2014-15                  | CANE PRICE ARREARS 2013-14                  | CANE PRICE ARREARS 2012-13 & EARLIER        | Total                                       |
| 1                                           | 2                                           | 3                                           | 4                                           | 5                                           | 6                                           |
| 1                                           | PUNJAB                                      | 401.63                                      | 0.00                                        | 0.00                                        | 401.63                                      |
| 2                                           | HARYANA                                     | 304.38                                      | 0.00                                        | 0.00                                        | 304.38                                      |
| 3                                           | UTTAR PRADESH                               | 7827.78                                     | 0.00                                        | 116.24                                      | 7944.02                                     |
| 4                                           | RAJASTHAN                                   | 0.00                                        | 0.00                                        | 0                                           | 0.00                                        |
| 5                                           | CHATTISGARH                                 | 7.86                                        | 0.00                                        | 0                                           | 7.86                                        |
| 6                                           | UTTARAKHAND                                 | 471.35                                      | 0.89                                        | 24.92                                       | 497.16                                      |
| 7                                           | MADHYA PRADESH                              | 49.57                                       | 0.00                                        | 13.39                                       | 62.96                                       |
| 8                                           | GUJARAT                                     | 258.20                                      | 9.41                                        | 13.41                                       | 281.02                                      |
| 9                                           | MAHARASHTRA                                 | 3050.18                                     | 40.14                                       | 49.47                                       | 3139.79                                     |
| 10                                          | BIHAR                                       | 358.85                                      | 3.72                                        | 39.35                                       | 401.92                                      |
| 11                                          | TELANGANA                                   | 124.07                                      | 0.00                                        | 0                                           | 124.07                                      |
| 12                                          | ANDHRA PRADESH                              | 161.92                                      | 4.46                                        | 24.97                                       | 191.35                                      |
| 13                                          | KARNATAKA                                   | 1669.59                                     | 560.46                                      | 23.54                                       | 2253.59                                     |
| 14                                          | TAMIL NADU                                  | 880.45                                      | 328.16                                      | 9.69                                        | 1218.30                                     |
| 15                                          | ODISHA                                      | 9.20                                        | 2.33                                        | 0.61                                        | 12.14                                       |
| 16                                          | WEST BENGAL                                 | 1.82                                        | 0.00                                        | 0                                           | 1.82                                        |
| 17                                          | PUDUCHERRY                                  | 8.10                                        | 12.05                                       | 0.07                                        | 20.22                                       |
| 18                                          | GOA                                         | 8.24                                        | 0.00                                        | 0                                           | 8.24                                        |
|                                             | TOTAL                                       | 15593.19                                    | 961.62                                      | 315.66                                      | 16870.47                                    |

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