Lok Sabha Question No. 1598 (UNSTARRED), answered on 2015-12-08
Subject: Loans to Sugar Mills
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: M. B. RAJESH, RAJESH VERMA

## GOVERNMENT OF INDIA

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

## LOK SABHA UNSTARRED QUESTION NO. 1598 TO BE ANSWERED ON 08 th  DECEMBER, 2015

## LOANS TO SUGAR MILLS

1598.

SHRI M.B. RAJESH: SHRI RAJESH VERMA:

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 many sugar mills have failed to clear their sugarcane dues despite availing interest free loans from the Government;
- (b) if  so,  the  details  thereof  and  the  reasons  therefor  indicating  the quantum of loans availed, sugarcane price paid and dues pending during each of the last two years and the current year, State-wise;
- (c) the steps taken to ensure that the sugarcane dues of the farmers are cleared by sugar mills at the earliest; and
- (d) whether the Government proposes to take action against sugar mills for  not  clearing  dues  despite  availing  interest  free  loans  and  if  so,  the details thereof?

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

## (SHRI RAM  VILAS PASWAN)

- (a) & (b):   In recent past, the Central Government has extended working capital loans with interest subvention to sugar mills to facilitate clearance  of  cane  price  dues  of  farmers  under  scheme  for  Extending Financial Assistance to Sugar Undertakings (SEFASU-2014) and Soft Loan scheme.  The  loan  disbursed  under  both  the  schemes  was  to  be  used exclusively for payment of cane price dues of farmers and there were inbuilt  provisions  in  the  notification  of  the  scheme  to  ensure  the  same. State-wise details of quantum of loan disbursed under the two schemes, sugarcane  price  paid  and  cane  price  arrears  during  last  two  and  the current sugar seasons are annexed.

(c):    Apart  from extending working capital loan with interest subvention under    the  schemes  referred  in  reply  to  Part  a)  above,  the  Central Government with a view to facilitate clearance of cane price arrears of sugarcane  farmers,  has  also  taken  several  other  initiatives  to  help  the industry  resolve  liquidity  problems  and  expeditiously  clear  cane  price dues. The measures taken by the Government are listed below:-

- i)   Incentive  for  exporting  raw  sugar  in  sugar  seasons  2013-14  and
2. 2014-15.
3. ii)  Fixing remunerative prices for supplies of ethanol to Oil Marketing Companies (OMCs) for blending with petrol to improve liquidity of mills;  waiver  of  excise  duty  on  ethanol  supplies  to  OMCs  during 2015-16 and scaling up of blending targets from 5% to 10%.
4. iii) Enhanced import duty to 40% to discourage imports.
5. iv)  The  'Duty  Free  Import  Authorization'  scheme  (DFIA),  for  sugar
6. withdrawn.
- v)  The period for discharging Export Obligations under the Advanced Authorization  Scheme  for  sugar  reduced  to  6  months  to  prevent leakage into the domestic economy.
8. vi)  Notified  a  scheme  on  02.12.2015  to  extend  production  subsidy  @ Rs.  4.50  per  quintal  to  sugar  mills  to  offset  the  cost  of  cane  and facilitate timely payment of cane price dues of farmers.

(d): 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 necessary field formations. The Central Government also advises the State Governments to ensure that timely payment is made to the cane growers and to take action  against  the  defaulting  sugar  mills  for  non-payment  of  cane  price arrears.

***

## ANNEXURE

## ANNEXURE REFERRED TO IN REPLY TO PARTS (a) & (b) OF THE UNSTARRED QUESTION NO.1598 DUE FOR ANSWER ON 08.12.2015 IN THE LOK SABHA

STATEMENT  SHOWING  QUANTUM  OF  LOANS  DISBURSED,  SUGARCANE  PRICE  PAID  AND  DUES  PENDING DURING LAST TWO YEARS AND CURRENT YEAR

(Rs. in crores)

| SL. NO.   | STATE          | 2013-14                          | 2013-14                 | 2013-14                    | 2014-15                                     | 2014-15                 | 2014-15                    | 2015-16                 | 2015-16                    |
|-----------|----------------|----------------------------------|-------------------------|----------------------------|---------------------------------------------|-------------------------|----------------------------|-------------------------|----------------------------|
|           |                | LOAN DISBURSED UNDER SEFASU 2014 | CANE PRICE PAID 2013-14 | CANE PRICE ARREARS 2013-14 | LOAN DISBURSED UNDER SOFT LOAN SCHEME, 2015 | CANE PRICE PAID 2014-15 | CANE PRICE ARREARS 2014-15 | CANE PRICE PAID 2015-16 | CANE PRICE ARREARS 2015-16 |
|           | 1              | 2                                | 3                       | 4                          | 5                                           | 6                       | 7                          | 8                       | 9                          |
| 1.        | PUNJAB         | 149.60                           | 1422.89                 | 0                          | 77.37                                       | 1529.61                 | 134.27                     | 0                       | 0                          |
| 2.        | HARYANA        | 122.31                           | 1689.30                 | 0                          | 122.65                                      | 1725.22                 | 45.62                      | 0                       | 0                          |
| 3.        | RAJASTHAN      | 0                                | 0                       | 0                          | 0.00                                        | 2.25                    | 0                          | 0                       | 0                          |
| 4.        | UTTAR PRADESH  | 1607.22                          | 17711.21                | 0                          | 1045.45                                     | 17776.74                | 2868.39                    | 0                       | 0                          |
| 5.        | UTTARAKHAND    | 86.50                            | 908.64                  | 0.89                       | 58.09                                       | 697.57                  | 277.46                     | 0                       | 0                          |
| 6.        | MADHYA PRADESH | 41.36                            | 779.23                  | 0                          | 51.14                                       | 929.20                  | 4.40                       | 0                       | 0                          |
| 7.        | GUJARAT        | 288.76                           | 2638.30                 | 9.41                       | 41.16                                       | 2192.78                 | 19.43                      | 63.28                   | 65.06                      |
| 8.        | MAHARASHTRA    | 2054.36                          | 13563.12                | 32.16                      | 1667.92                                     | 18089.30                | 718.97                     | 0.00                    | 169.37                     |
| 9.        | BIHAR          | 61.51                            | 1630.07                 | 2.78                       | 129.64                                      | 1367.25                 | 56.35                      | 0                       | 0                          |
| 10.       | ANDHRA PR.     | 170.93                           | 1595.96                 | 1.66                       | 99.96                                       | 1356.89                 | 52.18                      | 0                       | 0                          |
| 11.       | TELANGANA      | 33.90                            | 820.26                  | 0                          | 28.25                                       | 762.44                  | 38.53                      | 0                       | 0                          |
| 12.       | KARNATAKA      | 827.77                           | 9002.03                 | 347.68                     | 481.79                                      | 10837.17                | 613.43                     | 0                       | 0                          |
| 13.       | TAMIL NADU     | 730.26                           | 3711.14                 | 328.16                     | 252.13                                      | 3076.15                 | 518.08                     | 70.87                   | 41.74                      |
| 14.       | ODISHA         | 0                                | 133.49                  | 2.33                       | 0.00                                        | 101.85                  | 0.58                       | 0.00                    | 0.86                       |
| 15.       | WEST BENGAL    | 243.22*                          | 15.07                   | 0                          | 84.66*                                      | 11.21                   | 1.82                       | 0                       | 0                          |
| 16.       | PUDUCHERRY     | 0                                | 99.56                   | 11.04                      | 8.47                                        | 21.58                   | 0                          | 0                       | 0                          |
| 17.       | GOA            | 2.98                             | 21.42                   | 0                          | 3.00                                        | 17.24                   | 4.09                       | 0                       | 0                          |
| 18.       | CHHATTISGARH   | 0                                | 114.98                  | 0                          | 0.00                                        | 173.02                  | 0.07                       | 0                       | 0                          |
|           | TOTAL          | 6420.68                          | 55859.67                | 736.11                     | 4151.68                                     | 60667.47                | 5353.67                    | 134.15                  | 277.03                     |

*Amount includes loan disbursed to some of the mills located in U.P. and Bihar also. ****