Lok Sabha Question No. 190 (UNSTARRED), answered on 2015-07-21
Subject: Interest Free Loan to Sugarcane Growers
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: DODDAALAHALLI KEMPEGOWDA SURESH, GOPAL CHINAYYA SHETTY, MEKAPATI RAJAMOHAN REDDY, VIRENDRA  KUMAR, B.N. CHANDRAPPA, A. ARUNMOZHITHEVAN, RAVINDRA VISHWANATH GAIKWAD, VINAYAK BHAURAO RAUT, RAHUL RAMESH SHEWALE, NALIN KUMAR KATEEL, RANJANBEN BHATT, A.T. (NANA) PATIL

## MINISTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION

## GOVERNMENT OF INDIA DEPARTMENT OF FOOD AND PUBLIC DISTRIBUTION

## LOK SABHA UNSTARRED QUESTION NO. 190

## TO BE ANSWERED ON 21 ST  JULY, 2015

## INTEREST FREE LOAN TO SUGARCANE GROWERS

190.  SHRI D. K. SURESH:

SHRI GOPAL SHETTY:

SHRI M. RAJA MOHAN REDDY:

DR. VIRENDRA KUMAR:

SHRI B. N. CHANDRAPPA:

SHRI A. ARUNMOZHITHEVAN:

PROF. RAVINDRA VISHWANATH GAIKWAD:

SHRI VINAYAK BHAURAO RAUT:

SHRI RAHUL SHEWALE:

SHRI NALIN KUMAR KATEEL:

SHRIMATI RANJANBEN BHATT:

SHRI A. T. NANA PATIL:

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

- the  quantum  of  sugarcane  dues  outstanding  against  sugar  mills,
- (a) State-wise;
- (b) whether  the  Government  has  approved  any  scheme  to  provide assistance  to  the  sugar  industry  including  interest  free  loans/subsidy  to enable them to repay the outstanding dues and revive the industry;
- (c) if  so,  the  details  thereof  indicating  the  terms  and  conditions  fixed therefor along with the number of farmers likely to be benefited therefrom;
- (d) the  details  of  the  similar  assistance  provided  during  the  last  three years;
- (e) whether  requests  have  been  received  from  the  States  including Karnataka for providing subsidy to clear sugarcane dues, if so, the details thereof and the response of the Government thereto; and
- (f) the steps/measures  proposed  to  improve  viability  of the  sugar industry and ensure remunerative price to the farmers?

## A N S W E R

MINISTER OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION

(SHRI RAM  VILAS PASWAN)

(a): A statement showing State-wise, quantum of sugarcane dues in the country (as on 30.06.2015) is at Annexure-I.

(b)&(c): Yes Madam. The Central Government has notified a scheme on 23.6.2015  envisaging  soft  loan  worth  Rs.  6000  crore  to  sugar  mills  to facilitate clearance of cane price arrears of current sugar season 2014-15. Interest subvention worth Rs. 600 crores during moratorium period of one year would be borne by the Government. Sugar mills which have cleared at least  50%  of  the  cane  price(calculated  on  the  basis  of  FRP)  payable  for current  sugar  season  2014-15  by  30.06.2015  and  have  at    the  least undertaken  sugar  production  in  the  sugar  seasons  2013-14  and  2014-15 would be eligible for loan under the scheme. It is not possible to indicate the number of farmers to be benefited as the same will depend upon the number of sugar mills that avail the benefit of the scheme.

(d):   A Scheme for Extending Financial Assistance to Sugar Undertakings (SEFASU-2014) was notified on 03.01.2014 to facilitate clearance of cane price  arrears  of  previous  sugar  seasons  and  timely  settlement  of  cane price of sugar season 2013-14 to sugarcane  farmers.  The  scheme envisaged additional working capital to sugar mills by banks with interest subvention to be borne by the Central Government. The Government also notified a scheme on 28.02.2014 allowing the incentive for marketing and promotion  services  of  raw  sugar  production  targeted  for  export  during sugar season 2013-14 which was further extended to sugar season 201415. The incentive amount are to be used for clearance of cane price dues of cane growers.

(e):  Requests  for  creation  of  a  Sugar  Price  Stabilization  Fund  to  provide subsidy  to  meet  the  difference  between  the  FRP  of  sugarcane  and  the price  arrived  through  revenue  sharing  formula  recommended  by  Dr.  C. Rangarajan  Committee,  have  been  received  from  some  States  including Karnataka.  However,  such  proposal  is  not  under  consideration  of  the Government.

(f): Policy for procurement of ethanol under the Ethanol Blending Programme (EBP) has been modified which provides for a new process that smoothens the entire ethanol supply chain and fixes the ex-depot price of ethanol  in  the  range  of  Rs  48.50  to  Rs  49.50  per  litre.  It  has  also  been decided to waive central excise duty on ethanol supplied to Oil Marketing Companies  (OMCs)  by  sugar  mills  for  EBP  in  the  ensuing  sugar  season 2015-16. The new policies seek to promote production of ethanol and its enhanced supplies under EBP which would help mitigate liquidity crisis of the sugar industry thereby enabling them to make timely payment of cane dues of the farmers.

***

## ANNEXURE REFERRED TO IN REPLY TO PART (a) OF THE UNSTARRED QUESTION  NO.190    DUE  FOR  ANSWER  ON  21.07.2015  IN  THE  LOK SABHA

## STATEMENT SHOWING STATE-WISE, QUANTUM OF SUGARCANE DUES IN THE COUNTRY (AS ON 30.06.2015)

| FIG. IN RUPEES CRORES   | FIG. IN RUPEES CRORES   | FIG. IN RUPEES CRORES          | FIG. IN RUPEES CRORES                            | FIG. IN RUPEES CRORES    |
|-------------------------|-------------------------|--------------------------------|--------------------------------------------------|--------------------------|
| SL. NO.                 | STATE                   | CANE PRICE ARREARS FOR 2014-15 | CANE PRICE ARREARS FOR 2013-14 & EARLIER SEASONS | TOTAL CANE PRICE ARREARS |
|                         | 1                       | 2                              | 3                                                | 4                        |
| 1                       | PUNJAB                  | 470.09                         | 0                                                | 470.09                   |
| 2                       | HARYANA                 | 380.82                         | 0                                                | 380.82                   |
| 3                       | RAJASTHAN               | 0                              | 0                                                | 0                        |
| 4                       | UTTAR PRADESH           | 8588.27                        | 116.24                                           | 8704.51                  |
| 5                       | UTTARAKHAND             | 283.42                         | 25.81                                            | 309.23                   |
| 6                       | MADHYA PRADESH          | 49.91                          | 13.39                                            | 63.3                     |
| 7                       | GUJARAT                 | 286.89                         | 22.82                                            | 309.71                   |
| 8                       | MAHARASHTRA             | 3091.92                        | 89.61                                            | 3181.53                  |
| 9                       | BIHAR                   | 364.52                         | 43.09                                            | 407.61                   |
| 10                      | TELANGANA               | 144.61                         | 0                                                | 144.61                   |
| 11                      | ANDHRA PRADESH          | 163.95                         | 29.63                                            | 193.58                   |
| 12                      | KARNATAKA               | 1794.64                        | 946.61                                           | 2741.25                  |
| 13                      | TAMIL NADU              | 857.86                         | 337.85                                           | 1195.71                  |
| 14                      | ODISHA                  | 36.98                          | 2.94                                             | 39.92                    |
| 15                      | WEST BENGAL             | 1.82                           | 0                                                | 1.82                     |
| 16                      | PUDUCHERRY              | 6.34                           | 12.12                                            | 18.46                    |
| 17                      | GOA                     | 8.25                           | 0                                                | 8.25                     |
| 18                      | CHATTISGARH             | 16.32                          | 0                                                | 16.32                    |
|                         | Total                   | 16546.61                       | 1640.11                                          | 18186.72                 |