QUESTION NO 2809 ANSWERED ON Regulation of release of sugar

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1 QUESTION NO 2809 ED ON Regulation of release of sugar 2809 SHRI BALAVANT ALIAS BAL APTE (a) whether a mechanism to regulate release of sugar is in force; (b) if so, the details thereof and its impact on the price of sugar in the country and the month-wise price of sugar in the domestic market during the last year; (c) whether a similar regulatory system is also in force in any other industry of the country; (d) if so, the details thereof; and (e) if not, the justification for retaining this mechanism in the sugar industry? (a) : Yes sir. (b) : Under the regulated release mechanism, there is judicious release of sugar every month in the country for the domestic market. The purpose is to ensure availability of sugar at reasonable prices, throughout the year, keeping in mind the domestic demand and supply situation, international scenario, market sentiments etc. A statement indicating the retail prices of sugar in the country during the last year i.e. from December, 2010 to November, 2011 is given at Annexure. ( c ) to ( e ) : Sugar is an essential commodity of mass consumption. The manufacturing of sugar is carried out for five to six months in a year whereas it is consumed throughout the year. Through the regulated release mechanism, the Government endeavours to safeguard the interest of sugarcane growers, sugar producers and the general public. Hence the special regulatory mechanism, which is operational in the sugar industry, is being continued. ***

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3 QUESTION NO 2823 ED ON Export of sugar 2823 SHRI RAM JETHMALANI (a) whether it is a fact that Government had given permission to export 10 lakh tonnes of sugar on the basis of the estimate made prior to its production in the country; (b) if so, by when this decision was taken and the estimate of sugar production for the entire year; (c) whether, according to the sources of Indian Sugar Mills Association, there has been indication of decrease in production after the said estimate was made; and (d) if so, the facts thereof and the percentage of sugar mills which have started production, as per their capacity in the country till November, 2011? (a) Taking into account the opening stock, likely sugar production and domestic demand, the Government has allowed export of upto 10 lakh tons of sugar during sugar season under Open General Licence. (b) The Government took the decision to allow export of 10 lakh tons of sugar on 22nd November, Based on 1st Advance Estimates of sugarcane production received from Directorate of Economics and Statistics, Department of Agriculture, the sugar production is provisionally estimated to be about 246 lakh tons for the sugar season (c) No, Sir. (d) As per information received from states, out of 667 installed sugar mills, 398 sugar mills, i.e. about 60% have commenced production of sugar till 30th November, ****

4 QUESTION NO 2051 ED ON Export of sugar 2051 SHRI RAM KRIPAL YADAV (a) whether Government has allowed export of sugar although there is less availability of sugar in the domestic market; (b) if so, whether it would not affect the prices of sugar in domestic market; and (c) the details thereof and the reason for allowing export of sugar in the current year? (a): Taking into account the opening stock and likely sugar production, the Government has allowed export of upto 10 lakh tons of sugar during sugar season under Open General Licence. (b): The prices of sugar in the domestic market are influenced by various factors like raw material costs, production, supply, demand, international prices and market sentiments. As such it would not be possible to indicate the impact of one factor on domestic prices. (c): The Government has allowed export of sugar to ensure liquidity for sugar mills and timely payment of cane price to sugarcane farmers after considering requirement for domestic market.

5 QUESTION NO 2049 ED ON Assessment of sugar production 2049 SHRI RAM JETHMALANI (a) whether it is a fact that an assessment of the country's sugar production in the sugar year, has been made; (b) if so, the quantum of sugar production for the entire year; (c) the quantity of sugar assessed for consumption during ; and (d) the quantity in percentage by which the assessed consumption is in excess of that for ? (a): Yes, Sir. (b): Based on the first advance estimates of sugarcane production released by the Department of Agriculture & Cooperation in September, 2011, the production of sugar in the country is provisionally estimated at about 246 lac tons for the current sugar season (c ): The Central Government has released a quantity of lac tons of sugar for domestic consumption during the sugar season (d) There was not much difference in the quantity of sugar released for domestic consumption during sugar season as the quantity released stood at lac tons.

6 QUESTION NO 2045 ED ON Demand and production of sugar 2045 SHRI KANJIBHAI PATEL (a) the domestic demand and production of sugar in the country, Statewise; (b) the quota of sugar allocated to Gujarat under PDS during the last three years; (c) whether Government proposes to increase the quota of sugar to States specially for Gujarat, in view of current retail prices of sugar; and (d) what steps are being taken by Government to bring down the retail prices of sugar? (a): Based on the first advance estimates of sugarcane production released by the Department of Agriculture & Co-operation in September, 2011, the production of sugar is provisionally estimated at about 246 lac tons as against the estimated domestic demand of about 220 lac tons in the country during the current sugar season Statement showing estimated sugar production during sugar season by the sugar producing States is at Annexure. (b): The following quantities of levy sugar has been allocated to Gujarat for distribution under Public Distribution System (PDS) :- ( Qty. in 000 Tonnes ) Sl. No. Sugar season (October-September) Quantity allocated * (upto January, 2012) *includes special festival quota allocated to all States/UTs. (c) No, Sir. (d) The prices of sugar in the domestic market depend upon various factors namely, quantum of sugar produced, carried over stocks, domestic demand, international sugar prices and market sentiments etc. It is the endeavor of the Government to make adequate sugar available at reasonable price through the policy of regulated release mechanism. **** GOVERNMENT OF INDIA

7 QUESTION NO 370 ED ON Export of sugar 370 SHRI SHIVANAND TIWARI (a) whether it is a fact that the Government has allowed the export of 10 lakh tonnes of sugar in the very beginning of the crushing season; (b) if so, the details thereof; (c) whether it is also a fact that following this decision, the prices of sugar in the international market have depreciated whereas the same have appreciated in the domestic market; and (d) if so, the facts in this regard and the sugar stock in the country at the time of giving permission of its export? **** (a) to (d): A Statement is laid on the Table of the House. **** STATEMENT REFERRED TO IN REPLY TO PARTS (a) to (d) OF STARRED QUESTION NO. 370 DUE FOR ON IN (a) & (b): Taking into account the opening stock, likely sugar production and domestic demand, the Government has allowed export of upto 10 lakh tons of sugar during sugar season under Open General Licence on (c) & (d): The prices of sugar in the domestic market depend upon various factors like production, carried over stock, domestic demand, international prices of sugar and market sentiments etc. The international prices of sugar are influenced by factors like fluctuations in sugar production, movements in related markets like petroleum market, macro economic developments like investment in commodities trade and fluctuations in the financial market etc. As such, it is not possible to indicate the impact of the decision to export alone, on international and domestic prices. During the period from 23rd November, 2011 to 14th December, 2011, the future prices of sugar in international market quoted for March, 2012 delivery, as per Euronext.com & Liffe.com, fluctuated between US$ per MT to US$ per MT as against US$ per MT on , i.e. the date on which the decision of export was taken. During the same period, the all India average price of sugar in the domestic market has fluctuated between Rs per kilogram and Rs per kilogram as against Rs per kilogram on The sugar stock in the country, as on , was estimated at lakh tonnes.

8 QUESTION NO 661 ED ON Export of sugar 661 SHRI PRABHAT JHA (a) whether it is a fact that the Indian Sugar Mills Association has made an urgent demand for export of certain quantity of sugar; (b) if so, the details thereof; (c) whether it is also a fact that Government has refused to accede to their demand; and (d) if so, the reasons therefor? (a) &(b): The Indian Sugar Mills Association has represented for export of lakh tons of sugar in sugar season. (c)&(d): The Government has since considered their demand and allowed export of upto 10lakh tons of sugar during sugar season under Open General Licence.

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