to higher sugar production against the estimated consumption during the current
sugar season 2017-18, the domestic sugar prices have remained depressed since
the commencement of the season. As a result, accumulated dues of farmers have
reached to over Rs.20,000 crores, according to an official release.
order to stabilize sugar prices at reasonable level and to improve liquidity
position of mills thereby enabling them to clear cane price dues of farmers,
Government has taken following steps in past three months:
(a) Increased customs duty on
import of sugar from 50% to 100%.
(b) Imposed reverse stock
holding limits on producers of sugar for the months of February and March, 2018
to stabilise sugar price.
(c) Government has also fully
withdrawn the customs duty on export of sugar to encourage sugar industry to
start exploring possibility of export of sugar.
(d) In view of the inventory
levels with the sugar industry and to facilitate achievement of financial
liquidity, mill-wise Minimum Indicative Export Quotas (MIEQ) totalling 20 Lakh MT
have been fixed for sugar season 2017-18.
(e) Further, to facilitate
and incentivize export of surplus sugar by sugar mills, Government has allowed
Duty Free Import Authorization (DFIA) Scheme in respect of sugar.
April, 2015, the cane price arrears of farmers reached to an alarming level of
about Rs. 22,000 crores. The Central Government then notified, in December,
2015, a production subsidy scheme to offset the cost of cane to clear the dues
of sugarcane farmers; a subsidy was provided @ Rs. 4.50/- per quintal of cane
crushed. As a result of this measure, the sugar prices stabilized and
arrears were reduced substantially.
order to help sugar mills to clear cane dues of farmers, the Government has
decided to provide financial assistance @ of Rs. 5.50 per quintal of cane
crushed in sugar season 2017-18 to sugar mills to offset the cost of cane. The
said assistance shall be paid directly to the farmers on behalf of the mills
and be adjusted against the cane price payable due to the farmers against Fair
and Remunerative Price (FRP) including arrears relating to previous
Mills which fulfill the following conditions, will be eligible for the said
assistance of Rs.5.50/qtl of cane crushed:
(a) Mills having ethanol production capacity and who
have signed contracts with Oil Marketing Companies (OMCs) for supply of
ethanol, should have supplied at least 80% of indented quantity of ethanol
under Ethanol Blended with Petrol Programme (EBP) to OMCs during 2017-18 ethanol
season (December, 2017 – November, 2018).
(b) The mill should have filed updated online return
in Proforma-II relating to data on crushing of cane, production of sugar, sale
of sugar and by-products, etc as prescribed by Government under the provisions
of Sugar (Control) Order, 1966.
(c) The mill should have fully complied with all the
orders/directives of Department of Food and Public Distribution (DFPD) to the
sugar mills during 2017-18 sugar season.
said assistance of Rs.5.50/qtl of cane crushed will be provided on the basis of
actual cane crushed or inter se allocation of earlier
estimated 2800 LMT of cane to be crushed during 2017-18 sugar season, whichever
The total assistance would be about Rs. 1540 crore which will directly
benefit a large number of farmers and will help the sugar mills in a long way
in discharging their liabilities on account of cane price dues of farmers.