(a) whether a number of sugar mills in the country are sick and lying closed;
(b) if so, the details thereof and the number of sick and closed sugar mills in the country during the last two years and the current year, State-wise;
(c) the reasons for the sugar mills going sick and those closed down;
(d) whether the Government has taken any steps to re-open/revive the said sugar mills; and
(e) if so, the details thereof alongwith the achievements made therein during the said period, State-wise?
MINISTER OF STATE (INDEPENDENT CHARGE) FOR CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION (PROF. K.V. THOMAS)
(a) to (e): A Statement is laid on the table of the House.
STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (e) OF STARRED QUESTION NO. 288 DUE FOR ANSWER
ON 23.08.2011 IN THE LOK SABHA.
(a) & (b): The details of sugar mills, State-wise, which did not work and remained closed
during the last two sugar years (October -September) and the current year is enclosed at
Annexure-I. The detail of sick sugar mills, State-wise, is at Annexure-II.
(c): The reasons for closure/sickness of the sugar mills, generally, are non-availability
of adequate raw material, poor recovery from sugarcane, uneconomic size of the plant, lack of
modernization/ up-gradation and diversification, high cost of working capital, declaration of
high State Advised Price (SAP) of sugarcane by some States, lack of professional management,
overstaffing, etc.
(d) & (e): The Central Government has de-licensed sugar industry vide Press Note dated
31st August, 1998. It is responsibility of the entrepreneurs, concerned, to take steps to
re-open / revive the closed/ sick sugar mills as far as private sector is concerned and the
state Governments/ UTs, concerned, in the case of the public and cooperative sector sugar mills. level of Central Government, the Sugar Development Fund Rules, 1983, provide for concessional loans for modernization or rehabilitation of plant and machinery and sugarcane development as well as restructuring of SDF loans of the potentially viable sick sugar undertakings. In addition, Central Government introduced interest subvention facility of 3% for the restructuring of the term loans of the commercially viable Cooperative sugar mills through National Bank for Agriculture and Rural Development (NABARD) from 2005-06 financial year.