(a) whether the attention of the Government has been drawn to the
serious unrest lately brewing amongst sugarcane growers in different States particularly in Uttar Pradesh and Andhra Pradesh over the growing arrears
of sugarcane dues;
(b) whether the farmers have demanded clearance of arrears in Padrauna
in Uttar Pradesh in this year; and
(c) if so, the steps being taken by the Government to remedy the
situations?
THE MINISTER OF STATE IN THE MINISTRY OF CONSUMER AFFAIRS, FOOD AND PUBLIC
DISTRIBUTION ( SHRI V. SRIEENIVASA PRASAD )
(a),(b) & (c) : For the 1999-2000 sugar season against cane price
payable amount of Rs.10,868.81 crores as on 30.9.2000, cane price paid is of
Rs.10,338.67 crores. The cane price arrears are of Rs.530.14 crores, which
is 4.88% of the cane price payable amount. However, there are a few sugar
factories particularly in Uttar Pradesh, which have cane price arrears of
past sugar seasons. These sugar factories are sick and some of them have
been registered with the BIFR. The Central Government is aware of the unrest
amongst the sugar cane growers particularly in Uttar Pradesh on account of
non-payment of cane price dues by some of the sick sugar factories. The
Central Government, from time to time, has written to the concerned State
Governments for early payment of the cane price arrears. Besides, the
following measures have been taken to enable the sugar factories to pay the
cane price arrears.
(i) The Central Government have reduced the levy obligation of domestic
sugar factories from 40% to 30% with effect from 01.01.2000.
(ii) To restrict inflow of imported sugar in the country, Government,
with effect from 09.02.2000, have increased the custom duty to 60% along
with the existing countervailing duty of Rs.850 per tonne. The imported
sugar has also been brought under levy obligation and monthly release
mechanism.
(iii) The Central Government are also pursuing a policy of encouraging
stability and reasonable level of sugar prices in the domestic market through
judicious releases of freesale sugar quotas.
(iv) Advance releases of freesale sugar are being made to needy sugar
factories to pay the cane price dues.
(v) Government have decided to allow export of 10 lakh tonnes of sugar.