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Rajya Sabha
All sugar producing States have been offered assistance by way of Open Market Borrowings to help sugar factories to clear cane price arrears of 2002-2003 sugar season subject to terms and conditions thereof. This assistance would be available to the mills in the cooperative and public sectors in the States where the practice of State Advised Prices (SAP) of sugacane is prevalent and to all sugar mills in the States where no such practice exists. The States of Tamil Nadu and Maharashtra availed of the assistance to the tune of Rs. 229.97 crores and Rs. 300 crores respectively. Besides, the concerned financial institutions like NABARD, RBI, NCDC etc. address the credit related problems of sugar industry on an ongoing basis.
In addition, Government has announced a package for farmers including sugarcane farmers comprising one time settlement scheme for small and marginal farmers; special scheme for relief to farmers affected by natural calamities for at least two consecutive years in the last five years; and scheme for providing relief to farmers in arrears applicable to debts as on March 31, 2004.
The Government has already taken steps to help the sugarcane growers and sugar mills in the country like reducing levy obligation of sugar factories to 10 per cent of their production, providing buffer subsidy to the sugar mills to clear cane price arrears and providing export subsidy/incentives on export shipments of sugar. As regards the payment position of sugarcane farmers as on September 30, 2002, an amount of Rs. 12,779.82 crore has been paid out of the total payable price of Rs. 13899.42 crore. The percentage of arrears on the price payable works out to 8.1 per cent as on September 30, 2002 as against 12.7 per cent in the same date in the previous year; the minister added.
This information was given in Rajya Sabha today by the Minister of State for Consumer Affairs, Food and Public Distribution Dr. Akhilesh Prasad Singh in reply to a question of Shri Vijay J. Darda.
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