New Delhi, Mar 13 () Food Minister Ram Vilas Paswan onFriday said sugarcane arrears of farmers have come downsignificantly to Rs 1,314 crore from peak Rs 28,222 crore forthe 2018-19 marketing year on the back of several measurestaken by the Centre.
Sugar marketing year runs from October to September.
During Question Hour in Rajya Sabaha, Paswan said sugarproduction was high in 2017-18 and 2018-19 marketing yearswhich led to a sharp decline in the domestic ex-mill prices ofthe sweetener.
"Low realisation from sale of sugar due to surplus sugarstocks had adversely affected the financial health of sugarmills, resulting in accumulation of cane arrears of farmerswhich peaked at Rs 23,232 crore during sugar season 2017-18 inMay 2018 and at Rs 28,222 crore during the sugar season 2018-19 in April 2019," Paswan said.
To boost the liquidity position of mills and enable themclear cane price dues of farmers, he said the Centre tookvarious remedial measures such as providing assistance tomills to offset the cost of cane, fixation of minimum sellingprice of sugar, financial assistance to maintain buffer stocksas well as exports, and soft loans.
Paswan said the cane price arrears now are almost"negligible" for the last two sugar marketing years.
As a result of these measures, the all-India cane pricearrears of farmers have come down to Rs 251 crore for 2017-18based on state-advised price (SAP) and Rs 134 crore based onthe central price called the Fair and Remunerative Price(FRP).
For 2018-19, the arrears have come down to Rs 1,314 croreon SAP basis and Rs 931 crore on FRP basis, he said.
Paswan said some states, including Uttar Pradesh,announced their own cane price called SAP, which is higherthat the Centre's FRP.
The minister highlighted that the Centre has taken manysteps in 2019-20 as well to help sugar mills clear cane dues.
He said the Centre has created buffer stocks of 40 lakhtonnes of sugar, costing Rs 1,674 crore to the exchequer. Thatapart, an assistance of Rs 6,268 crore is being provided tohelp mills export 60 lakh tonnes of sugar.
The Centre is also encouraging diversion of excesssugarcane and sugar to produce ethanol for blending withpetrol.
Paswan said the sugar production is estimated at 273 lakhtonnes in 2019-20 as against domestic consumption of 260 lakhtonnes. In the previous year, sugar output was 331 lakh tonnesas compared with 259 lakh tonnes domestic demand. MJHDV DV
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