Question : Problems Faced by Sugar Industry

(a) whether the sugar industry in Tamil Nadu has pointed out that the support schemes of the Government are all oriented to surplus production States and if so, the details of the corrective measures proposed to be taken by the Government in this regard;

(b) whether the mills in Tamil Nadu face a peculiar situation of low capacity utilisation (35%) due to reduction in cane production;

(c) if so, whether the mills cannot export sugar as the production (8.5 lakh tonnes) is not adequate even to meet the domestic needs of the State 18 lakh tonnes;

(d) if so, the reasons identified by the Government for this situation; and

(e) whether it is true that Tamil Nadu was the third or fourth largest producer of sugar in the country five years ago, with an annual production of 23 lakh tonnes but its production of sugar has now declined to just one-third of that and if so, the reasons therefor along with the remedial action taken by the Union Government thereon?

MINISTER OF STATE FOR MINISTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION
(SHRI DANVE RAOSAHEB DADARAO)

(a): The support schemes formulated by the Central Government for the sugar sector are uniformly applicable to all the sugar producing States in the country. The State Government of Tamil Nadu has represented about the problems of the sugar sector specific to the State.

(b) to (d): Due to severe drought prevailing in the State on account of failure of rainfall and acute water stress, there has been decline in area under cane cultivation and yield per hectare. It has resulted in shortfall in cane availability, low capacity utilization and reduction in sugar production by sugar mills.

(e): During sugar season 2011-12, sugar production in Tamil Nadu was 23.79 Lakh MT and it was the fourth largest sugar producing state. However, due to reasons indicated in reply to part ‘d’ above, sugar production during current sugar season 2018-19 has declined to 7.24 Lakh MT. The Central Government has approved the Crop Development Programme on Sugarcane for enhancing the production and productivity under National Food Security Mission-Commercial Crops (NFSM-CC). As on 30.4.2019, under NFSM-(CC) sugarcane, Rs. 204.11 lakh have been allocated to Tamil Nadu as Central share since 2014-15.
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