Lok Sabha Question No. 2602 (UNSTARRED), answered on 2015-12-15
Subject: FRP of Sugarcane
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: SANGANNA AMARAPPA KARADI, RAJENDRA AGRAWAL

## MINISTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION

## GOVERNMENT OF INDIA DEPARTMENT OF FOOD AND PUBLIC DISTRIBUTION

LOK SABHA UNSTARRED QUESTION NO. 2602 TO BE ANSWERED ON 15 TH   DECEMBER, 2015

## FRP OF SUGARCANE

2602. SHRI SANGANNA AMARAPPA: SHRI RAJENDRA AGRAWAL:

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 the Government proposes to increase the Fair and Remunerative Price (FRP) for sugarcane;
- (b) if  so,  the  details  and  the  extent  thereof  indicating  the  revised  FRP fixed/paid during the last three years and the current year;
- (c) whether  the  surplus  production  and  low  sugar  price  has  affected payment of dues to farmers; and
- (d) if  so,  the  steps  being  taken  by  the  Government  to  rectify  this situation?

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

(a)& (b) The Fair & Remunerative Price (FRP) of sugarcane for the current sugar  season  2015-16  has  been  fixed  at  Rs.  230  per  quintal  at  basic recovery rate of 9.5% which is  higher by Rs 10 per quintal as compared to FRP of sugarcane for the last sugar season 2014-15. The details of FRP of sugarcane  fixed  by  the  Central  Government  for  the  last  three  sugar seasons and the current sugar season are given in the table below:

|   S. No. | Sugar Season   |   FRP (Rs. per Quintal) | Basic recovery   |   Premium over basic recovery rate (in Rs. per quintal) for increase of every 0.1%) |
|----------|----------------|-------------------------|------------------|-------------------------------------------------------------------------------------|
|        1 | 2012-13        |                     170 | 9.5%             |                                                                                1.79 |
|        2 | 2013-14        |                     210 | 9.5%             |                                                                                2.21 |
|        3 | 2014-15        |                     220 | 9.5%             |                                                                                2.32 |
|        4 | 2015-16        |                     230 | 9.5%             |                                                                                2.42 |

(c)& (d): Surplus sugar production over domestic demand across last five sugar  seasons  coinciding  with  global  surplus  has  resulted  in  substantial inventories with sugar mills. Consequently,  sugar prices  have  been subdued resulting in low revenue realisation leading to cane dues arrears. The Central Government with a view to facilitate clearance of cane price arrears  of  sugarcane  farmers  has  taken  several  steps  to  help  the  sugar industry  resolve  liquidity  problems  and  expeditiously  clear  cane  price dues. The measures taken by the Government are as under:-

- i) 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.
2. ii) Incentive  for  exporting  raw  sugar  in  sugar  seasons  2013-14  and 2014-15.
3. iii) Fixed  remunerative  prices  for  supplies  of  ethanol  to  OMCs  for blending with petrol; waiver of excise duty on ethanol supplies to OMCs during 2015-16 and scaling up of blending targets from 5% to 10%.
4. iv) Enhanced import duty to 40% to discourage imports.
- v)    The  'Duty  Free  Import  Authorization'  scheme  (DFIA),  for  sugar withdrawn.
6. vi) The period for discharging Export Obligations under the Advanced Authorization  Scheme  for  sugar  reduced  to  6  months  to  prevent leakage into the domestic economy.
7. vii) Notified  a  scheme  on  2.12.2015  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.

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