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Directorate of Sugar and Vegetable Oils

About Us

The Directorate of Sugar & Vegetable Oils is an attached office of the Department of Food & Public Distribution and responsible for implementation of policies regarding production, distribution and consumption of sugar including policy matters relating to sugar and sugarcane sector, fixation of Fair & Remunerative Price (FRP) of sugar cane payable by sugar factories to the sugarcane growers, development and regulation of sugar industry (including training in the field of sugar technology) and supply of sugar under public distribution system (PDS). This Directorate also assists the Department in the management of edible oils sector, particularly relating to the availability and monitoring of prices.

sugar


Sugar Division

There are 742 installed sugar factories in the country as on 30.11.2018, with sufficient crushing capacity to produce around 343 lakh MT of sugar. The capacity is roughly distributed equally between private sector units and co-operative sector units. The capacity of sugar mills is, by and large, in the range of 2500 TCD-5000 TCD bracket but increasingly expanding and going even beyond 10000 TCD. Two standalone refineries have also been established in the country in the coastal belt of Gujarat and West Bengal which produce refined sugar mainly from imported raw sugar as also from indigenously produced raw sugar. The sector-wise break-up of sugar mills in the country is as given below :-

Sl. No

Sector

Number of factories

1.

Co-operative

329

2.

Private

370

3.

Public

43

Total

742*

*Includes one refinery each in West Bengal & Gujarat.


Cane Price Arrears

The payment to sugarcane farmers by sugar mills, though statutorily supported by various statutes and enforced by State Governments, get affected by the dynamics of domestic market price as well as international situation related to export possibilities.The sugar production in the country has been more than domestic requirements for consecutive five sugar seasons from 2010-11 onwards except during 2016-17 when the production was though low but the total availability of sugar including huge carryover stocks, was sufficient to meet the domestic requirement. The production during current sugar season 2017-18 is also expected to be sufficient to meet domestic requirements. Due to surplus sugar production, the prices of sugar had been subdued in the domestic market, adversely affecting the liquidity of the sugar mills and their ability to pay the cane dues to the sugarcane farmers in time. Consequently, the Government has implemented various schemes to increase the liquidity of the sugar mills so that the cane price arrears could be kept to a minimum during these seasons. The position of cane price payments and arrears for the past few sugar seasons, on a similar cut-off date, was as under :-


Season

Position as on

Total Price Payable

Total Price paid

Arrears

% of arrears on price Payable

2017-18

15/11/2018

85,345.02

76,878.38

8,466.64

9.92

2016-17

15/11/2017

57,870.14

56,374.39

1,495.75

2.58

2015-16

15/11/2016

60,380.52

57,968.45

2,412.07

3.99

2014-15

15/11/2015

66,003.00

60,596.76

5,406.24

8.19

15/11/2014

31.01.2014

58,269.75

54,016.26

4,253.49

7.30

2012-13

15/11/2013

60,114.02

57,454.57

2,659.45

4.42


REVIEW OF EXISTING SYSTEM FOR DISTRIBUTION OF SUGAR THROUGH PDS TO ANTYODAYA ANNA YOJANA (AAY) FAMILIES

Sugar was distributed through the Targeted Public Distribution System(TDPS) by the States/UTs. at subsidized prices for which the Central Governments was reimbursing @ 18.50/- per kilogram of sugar distributed by the participating State Governments /UT. Administrations. The scheme was covering all BPL population of the country as per 2001 census and all the population of the North Eastern States/ Special category/Hilly States and Island territories. The National Food Security Act, 2013 (NFSA) is now being universally implemented by all 36 States/UTs. Under the NFSA, there is no identified category of BPL; however, the Antyodaya Anna Yojana (AAY) beneficiaries are clearly identified. The Government of India has reviewed the Sugar Subsidy Scheme and has decided that it is imperative to give access to consumption of sugar as a source of energy in diet, for the poorest of the poor section of the society i.e. AAY families. Accordingly, the Central Government has decided that the existing system of sugar distribution through PDS may be continued as per the following.

i.Existing scheme of supply of subsidized sugar through PDS may be continued for restricted coverage of AAY families only. They will be provided 1 Kg. of sugar per family per month./p>

ii.The current level of subsidy at Rs. 18.50/- per kg provided by the Central Government to State/UTs. for distribution of sugar through PDS may be continued for the AAY population. The States/UTs. may continue to pass on any additional expenditure on account of transportation, handling and dealers’ commission etc. over and above the retail issue price of Rs. 13.50/- per kg to the beneficiary or bear it themselves.

The revised scheme was implemented w.e.f. 1.6.2017. 14 States are participating in the scheme and 6 more states are likely to participate. In FY 2017-18, Rs. 300 cr of sugar subsidy has been released, whereas in the current financial year, so far Rs.125.65 cr have been released.


PRODUCTION, CONSUMPTION AND STOCKS OF SUGAR

Production of Sugar

Sugar production in India has been cyclic in nature. Every 2-3 years of high sugar production are followed by 2-3 years of low sugar production. From the sugar season 2010-11 to 2015-16 the country could also generate surpluses for export, earning valuable foreign exchange in the process. But due to continuous drought like situation in Maharashtra & Karnataka during the last two sugar seasons, the production of sugar in the previous sugar season 2016-17 has been lower than the domestic demand. However, with the carry over stock of 77.10 Lakh Tons of last sugar season and estimated production of 202 Lakh MT, the sugar availability was sufficient to meet the domestic demand.

Season wise production of sugar from 2012-13 and onwards is given below :-

Sugar Season

(October-September)

Production of Sugar

Qty. in lakh tonnes

2013-14

245.54

2014-15

284.63

2015-16

251.21

2016-17

202.27

2017-18(Provisional)

321.96


Closing stocks of Sugar

The closing stocks of sugar at the end of each sugar season from 2012-13 and onwards is given below :-

(Qty. in lakh tonnes)

Sugar Season

Closing Stock

2013-14

72.13

2014-15

88.76

2015-16

77.10

2016-17

39.37

2017-18(Provisional)

103.14

The details of estimated carry-over stocks, production, imports, availability, estimated internal consumption, closing stocks for the last five seasons are as under :-

Sugar Balance Sheet since 2012-13 Sugar Season and onwards:

( Qty. in Lac tons)

Particulars

2013-14

2014-15

2015-16

2016-17

2017-18

(P)

Carry- over stocks with sugar mills from Previous season

91.09

72.13

90.00

77.10

39.37

Production of Sugar

245.54

284.63

251.21

202.27

321.96

Imports

1.05

-

-

5.00

-

Estimated Total availability

337.68

356.76

341.21

284.37

361.33

dispatches from mills for Internal consumption

243.00

256.00

247.61

245.00

252.00

Exports against ALS/AAS obligation and OGL

22.55

12.00

16.50

-

6.19

Total Estimated releases/Dispatches

265.55

268.00

264.11

245.00

258.19

Estimated Closing Stocks with sugar mills at the end of season

72.13

88.76*

77.10

39.37

103.14

*closing stock of one season is differ from opening stock of other season to account for damaged / wet sugar, sugar sold against court order.

(P) – Provisional


Ex-mill & Retail Prices of Sugar

The range of price of sugar (S-30 Grade) in the major centres of the country from sugar season 2013-14 to 2017-18 (upto September, 2018), was as under :-

Sugar Season

( October - September)

*Range of Ex-mill Prices

(Rs. per quintal)

**Range of retail prices

(Rs. per kg.)

2013-14

2420-3300

31.00-36.00

2014-15

2050-2860

29.35-35.87

2015-16

2350-3500

30.55-41.00

2016-17

3391-3731

40.63-44.10

2017-18

2670-3660

36.34-43.36

Source: * Daily Trade Mart Enquiry, Directorate of Sugar and Vegetable Oils.

** Price Monitoring Cell, Department of Consumer Affairs.


Export of Sugar

Sugar is an essential Commodity. Its sales, delivery from mills, and distribution were regulated by the Government under EC Act, 1955. Till 15.01.1997, the exports of sugar were being carried out under the provisions of the Sugar Export Promotion Act, 1958, through the notified export agencies, viz. Indian Sugar & General Industry Export Import Corporation Ltd. (ISGIEIC) and State Trading Corporation of India Ltd. (STC).

Through an Ordinance, the Sugar Export Promotion Act, 1958, was repealed w.e.f. 15th January, 1997 and thus the export of sugar was decanalised. Under decanalised regime, the export of sugar was being carried out through the Agricultural and Processed Food Products Export Development Authority (APEDA), under Ministry of Commerce. Thereafter, the sugar export was undertaken by the various sugar mills/merchant exporters, after obtaining the export release orders from the Directorate of Sugar.

During the surplus phase of 2006-07 and 2007-08 sugar seasons, the sugar exports were permitted without release orders vide notification dated 31.07.2007. Subsequently, the necessity of obtaining release order was reintroduced from 01.01.2009, in view of drop in sugar production. However, due to surplus production during 2010-11 sugar season, Government permitted exports under OGL on the strength of the release order.

The phase of surplus production continued and the Government vide Notification No. 1059(E) dated 11.05.2012 has again dispensed with the requirement of export release orders. Thereafter, the export of sugar was allowed free subject to prior registration of quantity with DGFT. Subsequently, w.e.f. 07th September, 2015, the requirement for prior registration (RC) was also dispensed. Due to expected drop in sugar production during 2016-17 sugar season, customs duty @20% was imposed on export of sugar w.e.f.20.06.2016.However, Keeping in view of production of sugar, stock position and market price sentiments, the Government of India has withdrawn the custom duty on export of sugar vide notification no. 30/2018 dated 20.03.2018. As per current policy, export of sugar under OGL is free subject to no custom duty.


Import of Sugar

Import of sugar, which was placed under Open General License (OGL) with zero duty in March, 1994, continued with zero duty upto 27.04.1999. The Government imposed a basic customs duty of 5% and a countervailing duty of Rs. 850.00 per tonne on imported sugar with effect from 28.04.1998. The basic custom duty was increased from 5% to 20% w.e.f. 14.04.1999 in addition to the countervailing duty. In the Union Budget for the year 1999-2000, duty on imported sugar was further increased from 20% to 25% with surcharge of 10% . the customs duty on imports of sugar was again increased to 40% on 30.12.1999 and 60% on 09.02.2000 along with continuance of countervailing duty of Rs. 950/- per ton (w.e.f. 01.03.2008) plus 3% education cess.

Sugar production in the sugar season 2008-09 had been declined and in order to augment the domestic stock of sugar, the Central Government has allowed import of raw sugar at zero duty under Open General License (OGL) w.e.f. 17.04.2009 which was applicable till 30.06.2012. Thereafter, a moderate duty of 10% was re-imposed w.e.f. 13.07.2012 which was subsequently increased to 15% w.e.f. 08.07.2013. Due to surplus stocks of sugar in the country and in order to check any possible imports, the Government increased the import duty from 15% to 25 % on 21.08.2014, which was subsequently increased to 40% w.e.f. 30.04.2015, which was subsequently increased to 50% w.e.f. 10.07.2017 .However, in order to prevent any unnecessary import of sugar and to stabilize the domestic price at a reasonable level, the Central Government has increased custom duty on import of sugar from 50% to 100% in the interest of farmers w.e.f. 6.2.2018.

In order to minimise the regional imbalances in demand and supply for keeping the sugar prices at reasonable level, the Government permitted 8 Lakh MT of raw sugar import by sugar mills in two tranches of 5 Lakh MT at 0% duty and 3 Lakh MT at 25% duty for processing it to the white sugar and make available for domestic consumption. During the current sugar season 2017-18, the sugar production is estimated to be at 270 LMT which is sufficient to meet the domestic requirement.

As per information published by DGCIS, Kolkata, the export/import of sugar from sugar season 2009-10 to 2016-17 is given below :-

Export of Sugar

Sugar Season(Oct-Sept)

Quantity ( in lakh M.Ts) *

2013-14

26.85

2014-15

24.32

2015-16

37.98

2016-17

21.30

Import of Sugar

Sugar Season

Quantity ( in lakh M.Ts) *

2013-14

10.788

2014-15

12.82

2015-16

19.06

2016-17

26.82

*Includes quantity under Advanced Authorisation Scheme.


PRODUCTION SUBSIDY ON CANE CRUSHED

The Government Notified performance based production subsidy scheme vide notification dated 02.12.2015 which was subsequently amended vide notification dated 12.09.2016 to provide subsidy @ Rs. 4.50 per quintal on cane crushed during 2015-16 sugar upto 19.05.2016 (date of withdrawal of scheme) contingent upon achievement of targeted performance in respect of sugar export and supply of ethanol under Ethanol Blending Programme EBP (in case the mill have ethanol production capacity). Rs. 511.90 crore have been disbursed to 207 sugar mills under the production subsidy scheme till financial Year 2016-17.


SUGAR STANDARDS:

Sugar Industry Sectional Committee of Food & Agricultural Division( FAD-2), Bureau of Indian Standard(BIS), with the concurrence of Head, Food & Agricultural Division, BIS recommends the Indian Sugar Standards from year to year for use by the sugar factories, trade, Government Organizations, etc and to review the price differentials for different grades of sugar and other related matters.


E-GOVERNANCE INITIATIVES

In order to improve and systemize the data management system in sugar sector, the Directorate of Sugar under Department of Food and Public Distribution has developed a web based platform (esugar.nic.in/sugar_pII ) for online submission of inputs by sugar mills on monthly basis. This has helped the Government to take prompt and informed policy decisions for better management of sugar sector. The new system also provides transparency in the data management of the sugar mills as well as Government’s working. The portal also provides window for online connectivity with the State Governments for getting inputs regarding production, stocks utilization of levy sugar for PDS, cane price arrears of sugar mills on fortnightly basis etc.


OIL DIVISION

About Us

It seeks to coordinate management of edible oils in the country through a multi-pronged strategy, namely, (i) assessment of the domestic demand for edible oils and its availability from domestic sources. Mismatch of demand and supply is met through import of edible oils so as to maintain their prices at reasonable level; (ii) It also closely monitors prices of edible oils both in the domestic and in the international market and initiate necessary policy measures whenever necessary. The Division compiles the production of edible oil on the basis of online submission of data by vegetable oil industries registered with the Directorate. The monthly production data of edible oils is transmitted to M/o Statistics & PI for compilation of monthly Index of Industrial Production (IIP) which is released on 12th of every month. The Division is staffed with qualified technical people who assist the Ministry in the coordinated management of Vegetable Oils particularly relating to production/availability and monitoring of prices

sugar


Edible Oil Scenario

Importance of Edible Oils in the Country’s Economy

Oilseeds and edible oils are two of the most sensitive essential commodities. India is one of the largest producer of oilseeds in the world and this sector occupies an important position in the agricultural economy, accounting for the estimated production of 31.50 million tons of nine cultivated oilseeds during the year 2018-19 (November-October) as per 2ndAdvance Estimates released by the Ministry of Agriculture on 28.02.2019. India contributes about 6-7% of the world oilseeds production


Types of Oils commonly in use in India

India is fortunate in having a wide range of oilseeds crops grown in its different agro climatic zones. Groundnut, mustard/rapeseed, sesame, safflower, linseed, nigerseed/castor are the major traditionally cultivated oilseeds. Soyabean and sunflower have also assumed importance in recent years. Coconut is most important amongst the plantation crops. Efforts are being made to grow oil palm in Andhra Pradesh, Karnataka, Tamil Nadu and North- Eastern parts of the country in addition to Kerala and Andaman & Nicobar Islands. Among the non-conventional oils, rice bran oil and cottonseed oil are the most important. In addition, oilseeds of tree and forest origin, which grow mostly in tribal inhabited areas, are also a significant source of oils. Figures pertaining to estimated production of major cultivated oilseeds, availability of edible oils from all domestic sources (from Domestic and Import Sources) during the last ten years are as under: -


( Quantity in lakh Tons)

Oil Year (Nov.- Oct.)

Production of Oilseeds*

Net availability of edible oils from all domestic sources

Imports**

Total Availability of Edible Oils

2009-10

248.83

79.46

74.64

154.10

2010-11

324.79

97.82

72.42

170.24

2011-12

297.98

89.57

99.43

189.00

2012-13

309.43

92.19

106.05

198.24

2013-14

328.79

100.80

109.76

210.56

2014-15

266.75

89.78

127.31

217.09

2015-16

252.50

86.30

148.50

234.80

2016-17

312.76

100.99

153.17

254.16

2017-18

313.08

103.80

145.92

249.72

2018-19

315.02*

100.63

36.16(Nov18-Jan19)

Source : * As per Final 3rd Advance Estimates (dated 28.02.2019) released by Ministry of Agriculture.

** DGCIS


Consumption Pattern of Edible Oils in India

IIndia is a vast country and inhabitants of several of its regions have developed specific preference for certain oils largely depending upon the oils available in the region. For example, people in the South and West prefer groundnut oil while those in the East and North use mustard/rapeseed oil. Likewise several pockets in the South have a preference for coconut and sesame oil. Inhabitants of northern plain are basically consumers of fats and therefore prefer Vanaspati, a term used to denote a partially hydrogenated edible oil mixture of oils like palm oil, soyabean, sunflower, ricebran and cottonseed oils. Of late, things have changed. Through modern technological means such as physical refining, bleaching and de-odorization, all oils have been rendered practically colorless, odorless and tasteless and therefore, have become easily interchangeable in the kitchen. Oils such as soyabean oil, cottonseed oil, sunflower oil, ricebran oil, palm oil and its liquid fraction- palmolein which were earlier not known have now entered the kitchen. About 58% of domestic demand of edible oils is met through imports out of which palm oil/palmolein constitutes about 59%. The consumption of refined palmolein (RBD palmolein) as well as its blending with other oils has increased substantially over the years and is used extensively in hotels, restaurants and in preparation of wide varieties of food products.


Major Features of Edible Oil Economy

There are two major features, which have significantly contributed to the development of this sector. One was the setting up of the Technology Mission on Oilseeds in 1986 which has been converted into a National Mission on Oilseeds and Oil Palm (NMOOP) in 2014. This gave a thrust to Government's efforts for augmenting the production of oilseeds. This is evident by the very impressive increase in the production of oilseeds from about 11.3 million tonnes in 1986-87 to 31.50 million tons in 2018-19. Most of the oilseeds are cultivated on marginal land and are dependent on rainfall and other climatic conditions. The other dominant feature which has had significant impact on the present status of edible oilseeds/oil industry has been the program of liberalization under which the Government's economic policy allowing greater freedom to the open market and encourages healthy competition and self regulation rather than protection and control. Controls and regulations have been relaxed resulting in a highly competitive market dominated by both domestic and multinational players.

Export Import Policy on Edible Oils

The country has to rely on imports to meet the gap between demand and supply. Import of edible oil is under Open General License. In order to harmonize the interests of farmers, processors and consumers and at the same time, regulate large import of edible oils to the extent possible, import duty structure on edible oils is reviewed from time to time. W.E. F. 14.06.2018, the import duty on all crude and refined edible oils was raised to 35% and 45% respectively while the import duty on Olive oil was increased to 40%. The import duty on Crude and Refined Palm Oil was revised to 40% and 50% respectively for imports from ASEAN countries and 40% and 45% respectively for imports from Malaysia.
In order to ensure availability of edible oil in the country, export of edible oil has been banned w.e.f. 17.03.2008, which was extended from time to time. With effect from 06.02.2015, export of ricebran oil in bulk has been permitted. With effect from 27.03.2017, export of groundnut oil, sesame oil, soyabean oil and maize (corn) oil has been permitted. With effect from 06.04.2018, export of all edible oils except mustard oil was made free without quantitative ceiling; pack size etc, till further orders. Export of mustard oil is permitted in packs of up to 5 Kg with a Minimum Export Price (MEP) of USD 900 per MT.


Name of Oils

Rates of Import Duty . Effective Dates

Crude Palm Oil

0%

(17/03/12)

2.5%

(23/01/13)

2.5%

(23/01/13)

7.5%

(24/12/14)

12.5%

(17/09/15)

7.5%

(23/09/16)

15%

(11/08/17)

30%

(17/11/17)

44%

(01/03/18)

40%

(01/1/19)

RBD Palmolein

7.5%

(17/03/12)

7.5%

(17/03/12)

10%

(20/01/14)

15%

(24/12/14)

20%

(17/09/15)

15%

(23/09/16)

25%

(11/08/17)

40%

(17/11/17)

54%

(01/03/18)

50% (IND)

45%(MAL)

(01/1/19)

Crude Soyabean Oil

0%

(17/03/12)

2.5%

(23/01/13)

2.5%

(23/01/13)

7.5%

(24/12/14)

12.5%

(17/09/15)

12.5%

(17/09/15)

17.5%

(11/08/17)

30%

(11/08/17)

35%

(14/06/18)

Refined Soyabean Oil

7.5%

(17/03/12)

7.5%

(17/03/12)

10%

(20/01/14)

15%

(24/12/14

20%

(17/09/15

20%

(17/09/15

20%

(11/08/17)

35%

(17/11/17)

45%

(14/06/18)

Crude Sunflower Oil

0%

(17/03/01)

2.5%

(23/01/13)

2.5%

(23/01/13)

7.5%

(24/12/14)

12.5%

(17/09/15)

12.5%

(17/09/15)

17.5%

(11/08/17)

30%

(17/11/17)

35%

(14/06/18)

Refined Sunflower Oil

7.5%

(17/03/12)

7.5%

(17/03/12)

10%

(20/01/14)

15%

(24/12/14)

20%

(17/09/15)

20%

(17/09/15)

20%

(17/09/15)

35%

(17/11/14)

45%

(14/06/18)

Crude Rapeseed oil

0%

(17/03/12)

2.5%

(23/01/13)

2.5%

(23/01/13)

7.5%

(24/12/14)

12.5%

(17/09/15)

12.5%

(17/09/15)

12.5%

(17/09/15)

25%

(17/11/17)

35%

(14/06/18)

Refined Rapeseed oil

7.5%

(17/03/12)

7.5%

(17/03/12)

10%

(20/01/14)

15%

(24/12/14)

20%

(17/09/15)

20%

(17/09/15)

20%

(17/09/15)

35%

(17/11/17)

45%

(14/06/18)

Others

-

-

-

-

-

-

-

Crude-30% ref-35%-

(02/02/18)

Crude-35% ref-45%

(14/06/2018)


Source:-As notified by Department of Revenue.

Major recent decisions in respect of edible oils during 2017-18:

1. Vide Notification No. 84/2018-Customs and No. 82/2018-Customs dated 31.12.2018, import duty on Crude and Refined Palm Oils was revised to 40% & 45% respectively for imports from Malaysia and 40% & 50% respectively for import from ASEAN Countries.

2. Vide Notification No. 47/2018-Customs dated 14 th June, 2018, import duty on all Crude and Refined oils, except palm oil and olive oil increased to 35% & 45% respectively, import duty on Olive oil increased to 40%.

3. Vide Notification No. 01/2015-20 dated 06.04.2018 export of all edible oils except Mustard oil made free without quantitative ceiling, pack size etc till further orders. Export of Mustard oil is permitted to be exported in consumer packs of upto 5Kg with a minimum export price of USD 900.

4. Vide Notification No. 29/2018 dated 01.03.2018, customs duty on Crude Palm Oil increased to 44% and customs duty on Refined Palm/Palmolein increased to 54%.

5. With the implementation of FSSAI Act, 2006 w.e.f. 5th August, 2011, the edible oil industries is now governed by FSSAI for issue of license, safety and standard parameters. However, the data monitoring of procurement for the edible oil industries are being administered by the Directorate under Vegetable Oil Products, Production and Availability (VOPPA)(Regulation) Order, 2011.



Status of the Vegetable Oil Industry(as on 26.03.2019)

Vegetable Oil Industries registered under VOPPA(R) Order, 2011, with the Directorate

Type of Industry

No. Of Units Registered

  1. Vanaspati, Interestified Vegetable Fats

102

  1. Refinery along with Solvent plant & Oil Mills.

223

  1. Oil Mill & Blended Edible Vegetable Oil.

361

  1. Solvent Extraction Units

128

Total

814

E-GOVERNANCE INITIATIVES

In order to improve and systemize the data management system in the vegetable oil sector, the Directorate of Sugar & Vegetable Oils under Department of Food and Public Distribution has developed a web based platform (evegoils.nic.in) for online submission of inputs by vegetable oil producers on monthly basis. This has helped the Government to take prompt and informed policy decisions for better management of vegetable oil sector. The new system also provides transparency in the data management of the vegetable oil industry as well as Government’s working. The portal also provides window for online registration and submission of monthly production returns.