MINISTER OF STATE (INDEPENDENT CHARGE) FOR CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION
(PROF. K.V. THOMAS)
(a) & (b):- Yes Madam. A statement showing amount of outstanding sugarcane dues pending
against the sugar mills during each of the last three years and the current year,
State-wise as on 15th October, 2012, is at Annexure-I. The dues are generally on
account of matters being sub-judice before the courts, mills taken under Securitization
Act by lender Banks, etc.
(c):- The Sugarcane (Control) Order, 1966 stipulates payment of interest at the rate of
15% per annum on amount due for the delayed period beyond 14 days. The powers for
enforcing this provision are delegated and vested with the State Governments/UT
Administrations who have necessary field formations. The Central Government with
a view to enhance the liquidity of sugar mills for timely payment of sugarcane dues
has allowed export of sugar in 2010-11 and 2011-12 sugar seasons. However, the cane
price arrears are declining and the State-wise dues position is changing continuously.
As such, it is not possible to indicate the time frame by which the dues position is
likely to be cleared.
(d) & (e):- The Committee headed by Dr. C. Rangarajan on Sugar Industry has submitted
its report to the Government on 5th October, 2012. The Committee has, interalia,
recommended rationalization of sugarcane pricing over a two to three year period,
in a calibrated and phased manner. The said recommendation of the Committee is under
consideration of the Government. As such, there is no proposal to replace the present
pricing mechanism for sugarcane.
