(a) the number of sugar mills in operation and closed,
State-wise and sector-wise including Bihar;
(b) whether a large number of mills have been closed
down over the years in the country including Bihar;
(c) if so, the details thereof and the reasons therefor;
(d) whether any technical/financial assistance is being provided
to revive these mills and equip them with latest machinery;
(e) if so, the details thereof; and
(f) if not, the reasons therefor?
MINISTER OF THE STATE IN THE MINISTRY OF AGRICULTURE AND
MINISTER OF THE STATE IN THE MINISTRY OF CONSUMER AFFAIRS,
FOOD & PUBLIC DISTRIBUTION (SHRI SHARAD PAWAR)
(a), (b), (c), (d) (e) & (f): A statement is laid on the Table of the House.
STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (f) OF THE STARRED
QUESTION NO.80 DUE FOR ANSWER ON 24.11.2009 IN THE LOK SABHA.
(a): A Statement showing State-wise and Sector-wise number of sugar mills in operation and sugar
mills which did not function in 2008-09 sugar season (October-September) including Bihar, as on
30.09.2009, is annexed at Annexure I.
(b) &(c): The number of sugar mills which did not function during sugar season 2008-09
is 150.The main reasons for closure of these sugar mills could be non-availability of
adequate sugarcane, poor recovery from sugarcane, uneconomic size, lack of modernization,
upgradation and diversification, high cost of working capital, declaration of high State
Advised Price (SAP) of sugarcane by some States, control over molasses, lack of professional
management, overstaffing etc.
(d),(e)&(f): It is responsibility of the entrepreneur concerned to take steps to restart the
closed sugar mills. However, Sugar Development Fund Rules, 1983, provide that a potentially
viable sick sugar undertaking can take loan from Sugar Development Fund (SDF) for
(i) modernization / rehabilitation of plant and machinery and (ii) sugarcane development.
The loan from the Fund should be recommended by the Board for Industrial and Financial
Reconstruction (BIFR) for sugar mills in private and public sector or the Committee of
Rehabilitation (CoR) which has been set up in the Department of Food and Public Distribution
to consider cases of sugar mills in cooperative sector.