MINISTER OF STATE IN THE MINISTRY OF AGRICULTURE AND MINISTER OF STATE IN THE MINISTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION(DR. AKHILESH PRASAD SINGH)
(a) & (b) : Yes Sir. Production of Sugarcane shows a declining trend over the last four years. In
the table given below, the production of Sugarcane from 2000-01 to 2004-05 is shown:
Year Production (Lakh Tonnes)
2000-01 2959.56
2001-02 2972.08
2002-03 2873.83
2003-04 2373.08
2004-05# 2323.18
# Fourth Advance Estimates as on 06.07.2005
(c) : There has been decrease in area under sugarcane crop from 4.52 million hectares to 4.02
million hectares in 2003-04 and to 3.76 million hectares in 2004-05 which caused significant
decline in production of sugarcane during these years. The decline in Sugarcane area in these
years occurred due to different reasons viz. delay in payment of Sugarcane arrears, incidences of
white wooly aphids, deficient rainfall resulting in scarcity of water, diversification of sugarcane
area to other crops etc.
(d): In order to improve the productivity and production of sugarcane, a Centrally Sponsored
Scheme on Sustainable Development of Sugarcane Based Cropping System Areas was launched
by the Ministry of Agriculture during 1995-96 in 21 States/ Union Territories. Since October
2000 the scheme has been subsumed under Macro Management Mode of agriculture to give
more flexibility to states. The expenditure on the scheme is shared on 90:10 basis between the
Government of India and State Governments.
The main thrust of the scheme is on the transfer of improved technology to the farmers
through field demonstrations, training of farmers, supply of farm implements, enhancing seed
production and pest control measures etc. Under the scheme, assistance is provided to the State
Governments on
(i) Field Demonstration
(ii) Farmers Training
(iii) State-Level Training
(iv)
Implements (a) Bullock Drawn (b) Tractor Drawn
(v) Seed Multiplication
(vi) Heat Treatment
Plant
(vii) Drip infrastructure and
(viii) Contingency.
In addition, the Government of India provides 100% financial support for organization of
Front Line Demonstration, National Level Training and Breeder Seed production. These
components are executed by involvement of Agriculture Scientists.
(e) : Due to drought and pest infestation, in most of the tropical and sub-tropical region in the
country, there was a major reduction in area and sugarcane cultivation and its yield resulting in
low production of sugarcane affecting sugar factories lying in those areas during the last two
years.
(f): It is the responsibility of the entrepreneur to take steps to reopen/revive the closed sugar
mills. The sick mills belonging to private and public sectors are covered under the-provisions of
Sick Industrial Companies (Special Provisions) Act, 1985 (SICA). Such sugar mills are required
to make a reference to the Board for Industrial and Financial Reconstruction (BIFR) whenever
their accumulated losses become equal to or more than the net-worth. If the rehabilitation
schemes sanctioned by BIFR provide for any relief/concession from this Ministry, the scheme is
considered as per the existing guidelines.
As regards the cooperative sugar mills a Committee has been constituted by the Ministry
of Consumer Affairs, Food and Public Distribution (Department of Food and Public
Distribution) to consider the proposals of the potentially viable sick sugar mills of this sector.
