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Sugar



Directorate of Sugar and Vanaspati was part of erstwhile Food Department of pre-independence era. The Food Department was re-designated as Ministry of Food on 29th August, 1947. In November, 1976, the Directorate of Sugar and Vanaspati was bifurcated, with Directorate of Sugar remaining with the Department of Food, while the work relating to Vanaspati, vegetable oils and fats etc. were transferred to the Ministry of Civil Supplies and Co-operation.

Food on 29th August, 1947. In November, 1976, the Directorate of Sugar and Vanaspati was bifurcated, with Directorate of Sugar remaining with the Department of Food, while the work relating to Vanaspati, vegetable oils and fats etc. were transferred to the Ministry of Civil Supplies and Co-operation.

In August, 2014, the erstwhile two Directorates viz. Directorate of Sugar and Directorate of Vanaspati, Vegetable Oils & Fats have been merged with a single new entity as Directorate of Sugar and Vegetable Oils.

Directorate of Sugar & Vegetable Oils (DS & VO) is responsible for implementation of policies relating to sugar and edible oil sectors, particularly the availability of sugar and edible oils and monitoring their price.

DS & VO maintains data relating to production, distribution and consumption of sugar. Besides, Directorate also provides technical inputs for formulation of policies relating to sugar sector. It is also entrusted with the maintenance of data relating to cane price payment position, development and regulation of sugar industry and supply of sugar under public distribution system (PDS). Further, Cabinet Secretariat vide notification dated 02.11.2018 has amended the Allocation of Business (AoB) Rules,1961 and the subject molasses; alcohol-industrial and potable from the molasses route; route; and Stand-alone distillery have been allocated to DFPD and are being handle din DS & VO. This Directorate also assists the Department in management to edible oils sector.


FUNCTIONS:

  • In pursuit of mandated objectives, the core activities/functions of the Directorate of Sugar & Vegetable Oils are the following:-

  • ·Assessment of the Domestic supply - demand situation, international trends, price situation and export / import policy adjustments.

  • ·Enforcement of minimum distance criteria for establishing new sugar mills.

  • ·Cane area reservation issues requiring Government of India’s intervention.

  • ·Administration of subsidy for PDS distribution of sugar by States/ UTs.

  • ·Fixation/finalization ofold levy price fixation and margins of retailers and whole sellers.

  • ·Interface with ISRO regarding production forecast.

  • ·Industrial Entrepreneurs’ Memorandum (IEM) related matters for establishing of new sugar factory.

  • ·Monitoring of domestic wholesale, retail and international prices of edible oils on a daily basis.

  • ·Recommending policy intervention required for maintaining sufficient availability of edible oils at reasonable prices.

  • ·Providing inputs on matters related to edible oils and oilseeds.

  • ·Registering of edible oil manufacturing units under the Vegetable Oil Products Production and Availability (Regulation)Order 2011 and issuing Registration Certificate.

  • ·Operationalization and maintenance of P-II, a web based on line monitoring system for data on sugar Production/dispatch/export and production of ethanol from B-heavy molasses.

  • ·Compilation of weekly sugar production data.

  • ·Preparation of weekly provisional report on production, dispatches, stock etc. of sugar.

  • ·Compilation of annual data on cane crushed, production of sugar etc.

  • ·Compilation of data on estimates of production in the ensuing sugar season furnished by State Govt./Individual sugar mills.

  • ·Preparation of fortnightly reports on cane price payable, cane price paid and cane price arrears based on the information received from the State Govt. /sugar mills for each fortnight.

  • ·Allotment of Code No. and Short name to the sugar mills.
  • · Fixation of norms/review of International Agreements relating to sugar.

  • · Matters relating to payment of Annual contribution for Membership to ISO.

  • ·Keeping record of pending levy obligation of sugar mill and court case in this regard.

  • ·Matters relating to Administration of Levy Sugar Supply (Control) Order, 1979 and Sugar Price (Control) Order, 2018 and imposition of stock holding limits of sugar mills.

  • Various schemes in the form of policy interventions by the Govt. in sugar sector are also implemented and administered by the Directorate of Sugar and Vegetable Oils.


Part A :- SUGAR.

Part B :- OIL DIVISION.

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.


Sector-wise position of sugar mills.

There are 752 installed sugar factories in the country as on 30.09.2020, with sufficient crushing capacity to produce around 347 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 :-

State-wise break up of operative sugar mills*Link Table No. 1


PRODUCTION, CONSUMPTION AND STOCKS OF SUGAR.


(A ) Production of Sugar

Sugar production in India has been through cyclic in nature. Every 2-3 years of high sugar production are followed by low sugar production.From the sugar season 2017-18 and onwards,the country had produced surplus sugar than the domestic requirement. The country could also generate surpluses for export, earning valuable foreign exchange in the process.


* link of PDF file (Table No 2.)


(B) Closing stocks of Sugar

The closing stocks of sugar at the end of each sugar season from 2017-18 and onwards is given below :-

* link of PDF file (Table No. 3)

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

Sugar Balance Sheet since 2016-17 Sugar Season and onwards:


* link of PDF file(Table No. 4)

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 2016-17 to 2019-20 (upto September, 2020), was as under :-

* link of PDF file (Table No. 5)

DATA ON EXPORT / IMPORT OF SUGAR

Export of Sugar

As per information published by DGCIS, Kolkata, the export of sugar from sugar season 2016-17 and onwards is given below :

* link of PDF file (Table No. 6)


Import of Sugar


As per information published by DGCIS, Kolkata, the import of sugar from sugar season 2016-17 and onwards is given below :-

* link of PDF file( Table No. 7)


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. 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 :-

* link of PDF file (Table No. 8)


SCHEMES BEING IMPLEMENTED BY DS&VO


Various interventions taken by the Government in the form of executive schemes are being implemented/administered by DS&VO. Brief details of such schemes are as under :-


1.DISTRIBUTION OF SUGAR THROUGH PDSTO ANTYODAYA ANNA YOJANA (AAY) FAMILIES


* link of PDF file(Revised guidelines vide letter dated 2nd June, 2017).


Sugar was being distributed through the Targeted Public Distribution System (TPDS) by the States/UTs at subsidized prices for which the Central Government was reimbursing them @ 18.50 per kg. 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. As such, with a view 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, it has been decided to continue with the existing scheme of supply of subsidized sugar through PDS for restricted coverage of AAY families for providing 1 kg of sugar per AAY family per month. Besides, the Government has continued with the current level of subsidy at Rs. 18.50 per kg for reimbursing the participating States/UTs for distribution of sugar through PDS. Under the scheme, during financial year 2019-20, an amount of Rs. 180 crore has been disbursed.


20 States/UTs are participating in the revised scheme and 2 more states are likely to participate in the current financial year 2020-21.


1.SCHEME FOR ASSISTANCE TO SUGAR MILLS FOR SUGAR SEASON 2017-18.


* link of PDF file(Notification dated 9thMay, 2018).

Government has notified the scheme "Assistance to sugar mills” under which financial assistance @Rs.5.50/quintal of cane crushed is being provided to sugar mills to offset the cost of cane amounting to about Rs.1540 crore. The assistance is to be used for payment of cane price dues of the current sugar season 2017-18 and arrears of previous sugar seasons. The assistance is to be paid directly to the farmers on behalf of the mills and adjusted against the cane price dues payable to the farmers including arrears. Subsequent balance if any, shall be credited into mill's account. Under the scheme, Rs. 438.24 Crore has been released.


2.SCHEME FOR ASSISTANCE TO SUGAR MILLS FOR SUGAR SEASON 2018-19.


* link of PDF file -(Notification dated 5th October, 2018).


In order to help sugar mills to clear cane dues of farmers, the Government on 5.10.2018 has notified a scheme to provide financial assistance @ of Rs. 13.88 per quintal of cane crushed in sugar season 2018-19 to sugar mills to offset the cost of cane. The total expenditure on this account would be about Rs.4163 cr. which will be borne by Government. To ensure payment of sugarcane dues of farmers, the assistance would be credited directly into the accounts of farmers on behalf of sugar mills against cane price dues payable to farmers against FRP including arrears relating to previous years and subsequent balance, if any, would be credited to mill’s account. Under the scheme, Rs. 468 Crore has been released


3.EXTENDING SOFT LOANS TO SUGAR MILLS TO CLEAR THEIR CANE PRICE DUES.

* link of PDF file(Notification dated 2nd March, 2019).


The Government has also notified a soft loan scheme on 02.03.2019 for extending loans amounting to Rs 10540 crore to sugar mills through banks for which Government would bear interest subvention of about Rs 738 crore @ 7% for one year. As per the scheme, loans which are sanctioned and disbursed by 31.5.2019 would be eligible for interest subvention. Under the scheme, Rs. 220 Crore has been released.


4.NEW SCHEME FOR EXTENDING FINANCIAL ASSISTANCE TO SUGAR MILLS FOR ENHANCEMENT AND AUGMENTATION OF ETHANOL PRODUCTION CAPACITY.

* link of PDF file(Notification dated 8th March, 2019).

The Government has notified a new scheme on 08.03.2019 for extending financial assistance to sugar mills for enhancement and augmentation of ethanol production capacity. Under the scheme Government would bear Rs.2790 crore towards interest subvention for extending indicative loan amount of Rs.12900 crore by banks to the sugar mills for augmentation of ethanol producing capacity. Under the scheme, Rs. 100 Crore has been released.


5.SCHEME FOR EXTENDING FINANCIAL ASSISTANCE TO MOLASSES BASED STAND-ALONE DISTILLERIES.

* link of PDF file(Notification dated 8th March, 2019).

* link of PDF file -(Notification dated 15thSeptember, 2020).


The Government has notified a scheme on 08.03.2019 for extending financial assistance to molasses based stand-alone distilleries. Under the scheme, Government would bear Rs.565 crore towards interest subvention for extending indicative loan amount of Rs.2600 crore by banks to the molasses based standalone distilleries to augment their ethanol production capacity. Further, vide Notification dated 15.09.2020, the Government has also allowed to remaining applicants to apply for setting up of distillation projects similar to earlier scheme.


6.SCHEME FOR CREATION AND MAINTENANCE OF 30 LAKH METRIC TONNES OF BUFFER STOCK, 2018.

* link of PDF file(Notification dated 15thJune, 2018).


The Government has notified a scheme on 15.06.2018, in order to maintain demand supply balance in the domestic market and to stabilize sugar prices thereby improving liquidity of sugar mills enabling them to clear cane price arrears of farmers. Government has created a buffer stock of 30 LMT of sugar for one year w.e.f. 01.07.2018. The Government is reimbursing carrying cost of Rs 1175 cr to sugar mills for maintaining such buffer stock. The subsidy is credited to a no-lien bank account opened by the sugar mill. From this no-lien account, banks shall directly remit the funds into the accounts of farmers on behalf of sugar mills against cane price arrears and subsequent balance, if any, would be credited to mills’ account. Under the scheme, about Rs. 483 Crore has been released.


7.SCHEME FOR EXTENDING FINANCIAL ASSISTANCE TO SUGAR MILLS FOR AUGMENTATION OF ETHANOL PRODUCTION CAPACITY, 2018

* link of PDF file(Notification dated 19th July, 2018).


In order to augment ethanol production capacity and thereby also allow diversion of sugar for production of ethanol, in principal approval has been granted for extension of soft loan of Rs. 6139 crores through banks to the mills for setting up new distilleries/ expansion of existing distilleries and installation of incineration boilers or installation of any method as approved by Central Pollution Control Board for Zero Liquid Discharge for which Government will bear interest subvention of Rs. 1332 crore. About 114 sugar mills are likely to be benefitted as a result of this measure and ethanol production capacity of sugar mills in the country is likely to be enhanced by about 200 crore litres per annum in the coming 3 years.


8.SCHEME FOR DEFRAYING EXPENDITURE TOWARDS INTERNAL TRANSPORT, FREIGHT, HANDLING AND OTHER CHARGES TO FACILITATE EXPORT DURING THE SUGAR SEASON 2018-19

* link of PDF file(Notification dated 5th October, 2018).


Government on 5.10.2018 has notified a scheme for extending assistance to sugar mills by defraying expenditure towards internal transport, freight, handling and other charges to facilitate export during the sugar season 2018-19 @ Rs. 1000/MT for the mills located within 100 kms from the ports, @ Rs. 2500/MT for the mills located beyond 100 kms from the port in the coastal states and @ Rs. 3000/MT for mills located in other than coastal states or actual expenditure, whichever is lower. The total expenditure on this account would be about Rs.1375 cr. which will be borne by Government. To ensure payment of sugarcane dues of farmers, the assistance would be credited directly into the accounts of farmers on behalf of sugar mills against cane price dues payable to farmers against FRP including arrears relating to previous years and subsequent balance, if any, would be credited to mill’s account.


9.SCHEME FOR CREATION AND MAINTENANCE OF 40 LAKH METRIC TONNES OF BUFFER STOCK, 2019.

* link of PDF file(Notification dated 31st July, 2019).


With a view to improve liquidity of the sugar industry; enabling them to clear cane price arrears of farmers for sugar season 2019-20 and to stabilize domestic sugar price, Central Government notified the Scheme on 31-07-2019 for Creation and Maintenance of Buffer Stock of 40 Lakh MT of sugar by the sugar mills in the country for one year with effect from 1st August, 2019. Under the scheme, Government would bear carrying cost of about Rs. 1674 crore for maintenance of the buffer stock. Under the scheme, about Rs. 169 Crore has been released.


11. SCHEME FOR ASSISTANCE TO SUGAR MILLS FOREXPENSES ON MARKETING COSTS INCLUDING HANDLING, UPGRADING AND OTHER PROCESSING COSTS AND COSTS OF INTERNATIONAL AND INTERNAL TRANSPORT AND FREIGHT CHARGES ON EXPORT OF SUGAR.

* link of PDF file(Notification dated 12th September, 2019).


With a view to facilitate export during sugar season 2019-20 thereby improving the liquidity position of the sugar mills enabling them to clear cane price dues of farmers for sugar season 2019-20, vide notification dated 12.09.2019, a Scheme for providing assistance to sugar mills for expenses on marketing costs including handling, upgrading and other processing costs and costs of international and internal transport and freight charges on export of sugar was notified. Under the scheme, Government has to bear the expenditure of about Rs. 6268 cr on export of 60 LMT of sugar during 2019-20. Accordingly, Mill-wise Maximum Admissible Export Quantity (MAEQ) of 60 LMT of sugar for export during sugar season 2019-20 was allocated to sugar mills. As on 31.10.2020, about 59 LMT of sugar has been exported out of MAEQ of 60 LMT. Under the said scheme, against the exported quantity, the Government would bear about 6164 crores.


E-GOVERNANCE INITIATIVES

In order to improve and systemize data management system in sugar sector, the Directorate of Sugar and Vegetable Oils under the Department has developed a web based platform (esugar.nic.in) for online submission of inputs by sugars mills on monthly basis. This has helped the Government to take prompt and informed policy decisions for better management of the 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, cane price arrears of sugars mills on fortnightly basis etc.

2. The Directorate of Sugar & Vegetable Oils has also recently developed a Web Portal/Dashboard (sugarethanol.nic.in) for online submission of data on production of ethanol & its supply under Ethanol Blended with Petrol (EBP) Programme by all the distilleries either attached with sugar mills or standalone on periodical basis. The distilleries, which have been given benefit under Interest Subvention Scheme of DFPD, are also required to update their implementation status and constraints, if any, for their speedy redressal. This programme will help in monitoring the progress of under-implementation distillery projects also.

3. Similarly, online registration facility for Edible Oil Processing Units is operational since May, 2014 (evegoils.nic.in). Registered units are providing production data on processing of vegetable oils online which in turn helps in policy formulation.









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