Sugar Production

In order to improve the liquidity position of the sugar mills to enable them to clear the cane dues of the farmers, the Central Government has taken following initiatives during the last five months :

(i) Notified the scheme for “Assistance to sugar mills” under which financial assistance @Rs.5.50/quintal of cane crushed will be provided to sugar mills to offset the cost of cane amounting to about Rs. 1540 Crore;

(ii) Created buffer stock of 30 LMT for which Government will reimburse carrying cost of Rs. 1175 Crore towards maintenance of

Buffer stock;

(iii) Decided to provide soft loans of Rs. 4,440 through banks to the mills for setting up new distilleries and installation of incineration boilers to augment and enhance ethanol production capacity for which Government will bear interest subvention of Rs. 1332 Crore;

(iv) Notified the sugar price (Control) Order, 2018 and there under fixed the minimum selling price of sugar at Rs.29/kg for sale at factory gate in domestic market, below which no sugar mill can sell sugar.

The Sugar production during current sugar season (Oct, 17-Sep,-18) is estimated to be about 322 Lakh MT as against 202.27 lakh MT during pervious sugar season.

As indicated in reply to part (b) of the question above, the sugar production during current sugar season is estimated at about 322 Lakh MT as against estimated domestic demand of about 250 Lakh MT.

This was stated by Shri C.R.Chaudhary ,MoS ,Ministry of Consumer affairs,Food and Public distribution in a written reply in lok sabha today.

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APS/PC

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