NEW DELHI: A bill seeking to raise the sugar cess ceiling from Rs 25 to Rs 200 per quintal was passed by the Lok Sabha today, with the government saying it will help cane-growers who are in crisis as it can facilitate rehabilitation and modernisation of sugar factories. The Sugar Cess (Amendment) Bill 2015 was passed by a voice vote in the House which was boycotted by Congress over alleged "political vendetta" by the government. Replying to a brief debate, Food Minister Ram Vilas Paswan said the measure would lead to increase in the accruals to the Sugar Development Fund which facilitates rehabilitation and modernisation of any sugar factory and improving the viability of the mills, thereby helping cane-growers.
Responding to the queries raised by the members, Paswan said the Centre has been making efforts to revive the industry and has been looking into the three players---the farmers, mill owners and consumers.
"We can say that have fixed the ( FRP) Fair and Remunerative Price and shirk away from the responsibility. But the Centre cannot do that as we are a welfare state," he said. "On our part, the total outstanding in April 2015 to the sugarcane farmers was Rs 21,837 crore of which Uttar Pradesh alone contributed to over Rs 10,000 crore. In November, the figure went down to Rs 5036 crore," Paswan said.
The Sugar Cess (Amendment) Bill, 2015 was brought forward as the committed expenditure on account of various interventions to faciliate liquidation of arrears of cane dues necessitates enhancement of the accruals into the Sugar Development Fund from cess, its statement of objects and reasons said.