Question : DUES AGAINST SUGAR MILLS



(a) the total amount outstanding against the sugar mills as sugarcane dues during each of the last three years and the current year, State-wise;

(b) whether there is any provision for payment of interest on the amount owed by the mills as sugarcane dues;

(c) if so, the details thereof;

(d) whether the Government has formulated/proposes to formulate any strict policy to ensure timely payment of dues by sugar mills; and

(e) if so, the details thereof?

Answer given by the minister


MINISTER OF STATE (INDEPENDENT CHARGE) FOR CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION (PROF. K.V. THOMAS)

(a): A statement indicating the total amount outstanding against the sugar mills as sugarcane dues during each of the last three years and the current year(upto 31.01.2012) state-wise is at Annexure.

(b)&(c): Yes, Madam. The Sugarcane (Control) Order, 1966 stipulates that payment for the sugarcane purchased by the sugar mills should be made within 14 days of the date of delivery failing which interest at the rate of 15% per annum on the amount due for the delayed period beyond 14 days becomes payable.

(d)&(e): The Sugarcane (Control) Order, 1966, as amended from time to time, already contains the necessary provisions for timely payment of cane price to sugarcane farmers for sugarcane supplied by them to sugar mills and the powers for enforcing the provisions of the said Order relating to payment of cane price dues are delegated and vested with the State Governments who have the necessary field formations.