LOK SABHA
In order to mitigate
the hardship of the sugarcane growers. Government has decided
to create a buffer stock of 20 lakh tonnes of sugar for a period
of one year.
This will involve
an outgo of Rs. 412 crore from the Sugar Development Fund. An
additional amount of Rs. 374 crore would be released by bank on
account of the buffer stock. These funds of Rs. 786 crore will
be used exclusively by sugar mills for payment of cane price dues
to sugarcane growers for which the required legal rules are already
in place.
As per the Sugar
Development Fund Rules, 1983, the buffer stock of sugar is to
be stored in separate and distinctively identifiable stocks and
lots and in separate godowns within the premises of the sugar
undertaking. The sugar mills have enough storage capacity for
stock quantity to be allocated. Information on storage capacity
of sugar mills State-wise is not available.
The payment made
from the Sugar Development for Fund for maintenance of the buffer
stock will be used exclusively for payment of the cane price dues
to sugarcane growers and will to this extent mitigate the hardship
of the sugarcane growers and the problems facing the sugar industry.
This information
was given in the Lok Sabha today by Minister of State for Consumer
Affairs, Food and Public Distribution Shri V. Sreenivasa Prasad
in a written reply.
