Friday, August 14, 2009: 06:48:36 PM

TFPJ Press Release

Long-term steps taken to increase sugar production

Aug 7, 2009, New Delhi: The Union Government has undertaken the following steps to encourage the cultivation of sugarcane and increase sugar production in the country:
  • Statutory Minimum Price (SMP) of sugarcane for the sugar season in 2009-10 has been increased to Rs 107.76 per quintal, with an additional premium of Rs 1.13 for every 0.1% point increase in the recovery above 9.5%. The SMP for the previous sugar season was Rs 81.18 per quintal, with an additional premium of Re 0.90 for every 0.1% point increase in the recovery above 9%.
  • A centrally-sponsored scheme of Sustainable Development of Sugarcane Based Cropping System (SUBACS) is under implementation to increase the production and productivity of sugarcane. The main thrust of the scheme is on the transfer of improved production technology to the farmers through field demonstrations, training of farmers, supply of farm implements, enhancing production of planting materials, efficient use of water, treatment of planting materials etc. The scheme is under implementation in 22 states/union territories.
  • Concessional loans at an interest rate of 4% per annum are given to sugar factories from Sugar Development Fund (SDF) for modernisation of plants and machineries, expansion of crushing capacity, up-gradation of technology and sugarcane development including better irrigation facilities, improved seed variety, ratoon management etc.
The production of sugar during 2008-09 (October – September) was estimated to be lower at 150-155 lakh tonne, as compared to 263 lakh tonne in the previous sugar season during 2007-08. The drastic decline in sugar production in the country is mainly due to decrease in area under sugarcane, reduction in cane yield, higher diversion of sugarcane for the production of jaggery and Khandsari and fall in the recovery rate.
This information was given by Prof KV Thomas, Minister of State for Agriculture, Consumer Affairs, Food & Public Distribution in written reply to a question in the Rajya Sabha.
For further information, contact:
Press Information Bureau
"A" - Wing, Shastri Bhawan
Dr. Rajendra Prasad Road
New Delhi – 110001
Tel: 011 23389338

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