Buffer Stock of Sugar
In order to maintain demand supply balance and to stabilize sugar prices and to improve liquidity position of sugar mills thereby enabling them to clear can price dues of farmers, the Government created a buffer stock of 30 LMT of sugar from 1st July 2018 to 30th June 2019, for which Government is reimbursing carrying cost of about Rs.800 crore to sugar mills towards maintenance of buffer stock.
Further, the buffer stock of sugar to be maintained by sugar mills was increased to 40 LMT for a period of one year from 1st August, 2019 to 31st July, 2020, for which Government is reimbursing carrying cost of Rs.1674 crore towards maintenance of buffer stock.
To safeguard the interest of sugarcane farmers, Central Government fixes the Fair and Remunerative Price (FRP) of sugarcane for each sugar season on the basis of the recommendations of the Commission for Agricultural Costs and Prices (CACP) after consulting the State Governments and other stakeholders. FRP of sugarcane for current sugar season 2019-20 has been fixed at Rs. 275/qtl at 10% recovery rate.
This information was given in a written reply by the Minister for Consumer Affairs, Food and Public Distribution, Shri Ramvilas Paswan, in Rajya Sabha today.