NEW DELHI, 31 May 2020: Various measures have been taken by the Department of Food & Public Distribution for current sugar season 2019-20.
The government is reimbursing carrying cost of INR 1674 crore towards maintenance of buffer stock of 40 lakh metric tonnes of sugar.
Besides an assistance of INR 10448 per metric tonnes is being provided to sugar mills to meet expenses on export of 60 lakh metric tonnes of sugar, which is likely to cost around INR 6268 crore to the exchequer.
Also, soft loans of about INR 18600 crore are being extended through banks to 362 sugar mills and molasses-based standalone distilleries for enhancement and augmentation of ethanol production capacity, for which an interest subvention of about INR 4045 crore for five years is being borne by the Government.
As per the Food Ministry's data as on 28 May 2020, cane arrears in the current sugar season 2019-20 are INR 17,134 crore on the fair and remunerative price (FRP) basis while it is INR 21,238 crore on state advisory price (SAP) basis.
As per the government data, the estimated production of sugar during sugar season 2019-20 (October-September) is 270 LMT and opening stock as on 1 October 2019 was 145 LMT, hence the total supply of sugar in the season is 415 LMT. While estimated domestic consumption in the year is 240 LMT and estimated export during sugar season 2019-20 is around 50 LMT.
As on 28 May 2020, sugarcane price arrears of farmers for season 2018-19 at FRP basis is INR 689 crore and SAP basis INR 815 crore, the statement added.
During the 2018-19 period, the government paid INR 80978 crore on FRB basis and INR 85908 crore on SAP basis.
