Lok Sabha Question No. 2422 (UNSTARRED), answered on 2015-08-04
Subject: Sugar Consumption
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: B. SREERAMULU, NEELAM SONKER, RAVINDRA KUSHAWAHA, C.S. PUTTARAJU

## GOVERNMENT OF INDIA

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

## LOK SABHA UNSTARRED QUESTION NO. 2422 TO BE ANSWERED ON 04 TH  AUGUST, 2015

## SUGAR CONSUMPTION

2422. SHRI B. SRIRAMULU: SHRIMATI NEELAM SONKER: SHRI RAVINDER KUSHWAHA: SHRI C.S. PUTTA RAJU:

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 there has been a decline in the production of sugar and if so, the details thereof and the reasons therefor indicating the production, availability and demand, including domestic and industrial demand in the country during the last three years and the current year;
- (b) whether the sugar was imported during the said period to meet the demand and if so, the details thereof indicating the quantity and price of the sugar imported and the amount spent thereon;
- (c) whether the estimated decline in sugarcane production due to weak monsoon is likely to have adverse impact on sugar production during the ensuing year and if so, the details thereof and the corrective steps taken in this regard;
- (d) whether the Government has taken note of the outstanding sugarcane dues and rise in prices of sugar during the said period and if so, the details thereof and the incentives being provided by the Government for the benefit of sugarcane farmers and the sugar industry in the country and to control its prices; and
- (e) whether  the  Government  proposes  to  promote  import  of  finished sugar for domestic consumption by making changes in the conditions for import and permit sugar mills to sell white sugar in domestic market so as to  increase  the  availability  and  check  its  prices  and  if  so,  the  details thereof ?

## A N S W E R MINISTER OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION (SHRI RAM  VILAS PASWAN)

(a):  No,  Madam.  Sugar  production  has  been  more  than  the  domestic demand during the last three sugar seasons and the current sugar season 2014-15.  The  details  of  production,  availability  and  demand,  including domestic and industrial demand in the country during the last three sugar seasons and the current sugar season are given below:-

| Sugar season (Oct.-Sept.)   |   Carry Over Stock of Previous Sugar Season (In Lac MT) | Sugar production (In Lac MT)   |   Total Availability of Sugar (In Lac MT) | Domestic and Industrial Demand (In Lac MT)   |
|-----------------------------|---------------------------------------------------------|--------------------------------|-------------------------------------------|----------------------------------------------|
| 2011-12                     |                                                   58.54 | 263.43                         |                                    321.97 | 227.25                                       |
| 2012-13                     |                                                   66.01 | 251.83                         |                                    317.84 | 230.00                                       |
| 2013-14                     |                                                   91.09 | 245.54                         |                                    336.63 | 243.00                                       |
| 2014-15                     |                                                   72.13 | 280.00 (Estimate)              |                                    352.13 | 248.00 (Estimate)                            |

(b): No,  Madam.  There  has  been  hardly  any  import  under  Open  General Licence  (OGL)  during  the  said  period  as  domestic  production  of  sugar exceeded the domestic demand of sugar.

- (c): As  per  the  Directorate  of  Sugarcane  Development,  Lucknow  under the Department of Agriculture and Cooperation, the area under sugarcane cultivation  for  the  ensuing  sugar  season  2015-16  has  been  estimated around  46.59  lac  hectares  as  compared  to  46.42  lac  hectares  for  the corresponding  period  of  current  sugar  season  2014-15.    Since,  monsoon season is going on; it is too early to estimate the impact of monsoon on sugarcane and sugar production at this stage.
- (d): Due  to  surplus  availability  of  sugar  during  the  last  three  sugar seasons  and  the  current  sugar  season  2014-15,  the  prices  of  sugar  are subdued affecting the liquidity of the sugar mills to pay the cane dues to the sugarcane farmers which are at Rs.17301 crore as on 15.07.2015 in the country. In order to increase the liquidity of the sugar mills enabling them to clear cane dues of the sugarcane farmers, the Central Government has taken the following steps:-

- i. Extended  financial  assistance  to  the  sugar  mills  in  the  form  of interest free loan of Rs. 6600 crore through banks (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  EBP  and  fixed  its remunerative price.
- v. Waived  excise  duty  on  ethanol  to  be  supplied  for  EBP  in  2015-16 sugar season.
6. vi.
7. Import Duty increased from 25% to 40%.
- vii. Processing time under Advance Authorization Scheme reduced from 18 months to 6 months.
- viii. The  'Duty  Free  Import  Authorization'  scheme  (DFIA)  for  sugar withdrawn to prevent possible leakages.
10. (e): Presently,  the  import  of  sugar  is  subjected  to  payment  of  customs duty  @  40%.  There  is  no  proposal  to  promote  import  of  sugar  including finished sugar as the availability of sugar in the country is more than the domestic  demand.  The  prices  of  sugar  are  subdued  in  the  domestic market.

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