Executive Summary:
This document presents the Indian government's response to Lok Sabha Unstarred Question No. 2968 regarding sugarcane cultivation in Andhra Pradesh. It includes data on sugarcane cultivation, operational sugar mills, pricing policies, payment delays, and financial assistance provided to sugar mills and sugarcane farmers. The response covers the last five years and includes state-wise details. The reference date for outstanding dues is July 31, 2025.
Key Points / Main Content:
* **Sugarcane Cultivation in Andhra Pradesh:**
* Area under cultivation, production, and yield per hectare data are provided in Annexure I.
* **Operational Sugar Mills:**
* State-wise number of operational sugar mills, including Andhra Pradesh, is detailed in Annexure II.
* **Fair and Remunerative Price (FRP) and State Advised Price (SAP):**
* The Union Government declares FRP, which applies to Andhra Pradesh. There is no separate SAP for Andhra Pradesh.
* FRP fixed by the Union Government and SAP are listed in Annexure III.
* **Payment Delays to Sugarcane Farmers:**
* Outstanding cane dues have been reported in a few states due to reasons like NCLT cases and ownership issues, but the dues are decreasing.
* Details of outstanding dues in various states are in Annexure IV.
* **Financial Assistance and Subsidies:**
* The Central Government provides relief to sugar mills and farmers through policy interventions.
* FRP is fixed annually, considering factors in the Sugarcane Control Order, 1966.
* Diversion of surplus sugar to ethanol production improves sugar mills' financial conditions.
* The government allowed sugar exports to prevent a fall in ex-mill prices and cane price arrears.
* Assistance was released to sugar mills for marketing costs in 2020-21; state-wise details are in Annexure V.
* The Minimum Selling Price of sugar was initially fixed at ₹29/kg and later revised to ₹31/kg.
* Andhra Pradesh arranges loans for cooperative sugar mills for cane price dues and working capital.
* Many states provide assistance like cane seed, fertilizers, and transport support to growers.
* State Governments offer financial assistance like interest-free loans and subsidies to sugar mills.
Impact Analysis:
* Sugarcane Farmers:
* Impact: Affected by pricing policies (FRP/SAP), payment delays, and financial assistance programs.
* Action Required: Monitor payment status, utilize available subsidies, and engage with state support programs.
* Sugar Mills:
* Impact: Subject to FRP regulations, benefit from ethanol production incentives, export allowances, and financial assistance for marketing and operations.
* Action Required: Adhere to FRP guidelines, explore ethanol production, utilize export opportunities, and apply for available financial assistance.
* State Governments:
* Impact: Responsible for facilitating loans, subsidies, and support programs for sugar mills and farmers within their states.
* Action Required: Implement and oversee financial assistance programs, monitor the sugar industry, and ensure timely payments to farmers.
* Central Government:
* Impact: Responsible for setting FRP, regulating sugar exports, and providing financial assistance to the sugar industry.
* Action Required: Continue to monitor and adjust policies to support the sugar industry and ensure fair prices for farmers.
Key Entities Referenced
Andhra Pradesh: A state in India, specifically mentioned in the context of sugarcane cultivation, sugar mills, and financial assistance.
Fair and Remunerative Price (FRP): The minimum price for sugarcane fixed by the Union Government, as mentioned in the context of sugarcane pricing policy.
Union Government: The central government of India, responsible for setting the Fair and Remunerative Price (FRP) for sugarcane.
State Advised Price (SAP): The price of sugarcane declared by respective State Governments. Andhra Pradesh does not have SAP.
Sugarcane Control Order, 1966: A legal order that specifies the factors to be considered when fixing the Fair and Remunerative Price (FRP) of sugarcane.
Sugar Season 2024-25: Reference to the current sugar season for which data and policies are being discussed.
Lok Sabha: The lower house of the Parliament of India, where the unstarred question related to sugarcane cultivation was raised.
Ministry of Consumer Affairs, Food and Public Distribution: The Indian government ministry responsible for policies related to consumer affairs, food, and public distribution, including sugarcane.