Question : PRODUCTION EXPORT OF SUGAR



(a) the annual production of sugar during the last two crushing seasons and till date, State-wise;

(b) the percentage and quantum of sugar exported during the said period and the foreign exchange earned, year-wise;

(c) whether the production and export has declined in the said period;

(d) if so, the reasons therefor; and

(e) the corrective steps taken by the Government to boost the production and export of sugar?

Answer given by the minister

THE MINISTER OF CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION ( SHRI SHARAD YADAV )

(a),(b),(c),(d)&(e): A statement is laid on the Table of the House.

STATEMENT REFERRED TO IN REPLY TO PARTS (a),(b),(c),(d)&(e) OF STARRED QUESTION NO.86 DUE FOR ANSWER ON 19-07-2002 IN THE LOK SABHA.

(a): State-wise production of sugar during the last two crushing seasons and the current crushing season (as on 31-5-2002) is at Annex-I.

(b): The requisite information based on the data published by the Directorate General of Commercial Intelligence and Statistics (DGCI&S), Kolkata is furnished below :-

S.No.	Sugar Production Export % Value in	season (lakh MTS.) (lakh MTs) Rs./Lakhs
1. 1999-2000 181.93 0.23 0.13 2980.26

2. 2000-2001 185.10 9.87 5.33 126394.13

3. 2001-2002 129.71(upto Feb. 2002) 4.44(upto Feb., 2002) 3.42 52441.07


(c) &(d): The sugar production during the last two seasons was more than in the previous sugar seasons. The production during the current crushing season is likely to be more than 180 lakh Mts.

There has been an increase in exports also during the sugar season 2000-01 over the sugar season 1999-2000 as indicated in reply to part (b) of the question. During the current crushing season, the exports are likely to be around 10 lakh Mts.

(e): In order to boost the production of sugar, the sugar industry has been de- licensed with effect from September, 1998 allowing the entrepreneurs the freedom to set up new sugar factories or undertake expansion of the existing sugar factories keeping in view the techno- economic viability of their projects. Besides, loans from the Sugar Development Fund at concessional rates of interest for cane development, modernization/expansion and technological up-gradation are being given.

In order to boost the export of sugar, the following measures have been taken :


(i) The quantitative restriction on export of sugar has been removed.

(ii) The sugar meant for export has been exempted from the levy obligation.

(iii) The quantity of sugar released for export is treated as advance free sale release to be adjusted in the free sale stocks of the sugar factories after a period of 18 months.


(iv) DEPB at the rate of 4% of the F.O.B. value of export of sugar has been allowed.


(v) Hitherto only mill white sugar was being exported. It has been clarified that, in addition to mill white sugar, the sugar mills/exporters can also export raw sugar under the present EXIM policy.


(vi) The Government has amended the Sugar Development Fund Act, 1982 to enable it, inter alia, to utilize the Sugar Development Fund for defraying expenditure on internal transport and freight charges to the sugar factories on export shipments of sugar.

(vii) The State Governments of the major sugar producing States have been requested to give remission in purchase tax on sugar cane on the quantity of sugar exported.

ANNEX-I

ANNEX REFERRED TO IN REPLY TO PART (a) OF STARRED QUESTION NO. 86 DUE FOR ANSWER ON 19-07-2002 IN THE LOK SABHA.

STATEMENT SHOWING STATE-WISE PRODUCTION OF SUGAR DURING LAST TWO SEASONS & CURRENT SUGAR SEASON 2001-2002.

(Figures in lakh tonnes)
STATE SUGAR SEASON SUGAR SEASON SUGAR SEASON 1999-2000 2001-01 2001-2002(p) (AS ON 31.05.2002)
PUNJAB 4.20 4.96 5.88 HARYANA 4.77 5.86 6.33 RAJASTHAN 0.14 0.06 0.02 UTTAR PRADESH 45.56 47.55 54.43 MADHYA PRADESH 1.03 0.93 0.94 GUJARAT 11.41 10.73 10.26 MAHARASHTRA 65.03 67.05 56.74 BIHAR 3.68 2.88 2.74 ASSAM 0.04 0.03 0.00 ORISSA 0.53 0.34 0.24 WEST BENGAL 0.03 0.03 0.00 ANDHRA PRADESH 11.82 10.22 10.48 KARNATAKA 15.71 16.04 13.78 TAMILNADU 17.20 17.81 15.14 PONDICHERRY 0.49 0.38 0.24 KERALA 0.14 0.07 0.04 GOA 0.15 0.16 0.10
ALL INDIA 181.93 185.10 177.36