TEXT :
17.45 hrs.

MR. DEPUTY-SPEAKER: We shall go to Item No.21. Shri K.S. Rao.

SHRI K.S. RAO (MACHILIPATNAM): Sir, any policy that is normally evolved or declared by a Government must always take into account the national interest. Most countries which believe in liberalisation, also take their national interest into account. Countries like the U.S.A., who speak day in and day out about liberalisation, free movement, etc. when it comes to question of affecting their national interest, they also impose anti-dumbing duties to prevent certain commodities from entering into their market. A country which is mostly dependant on agriculture and agro-based industries, I regret to say that the policies are anti-national, more particularly, when the concerned Minister for Food and Consumer Affairs declares that the stock of sugar that is available in the country is sufficient to take care of the needs of the country and there would not be any increase in price in the market also.

I do not understand why the Finance Minister has not acted to the request of the sugar industry where around Rs.40,000 crore of public and private money is involved. Not only their money, but as you know, 45 million sugarcane growers are dependent on the sugarcane industry and about two million workers are dependent on the sugar industry. All of them are getting affected by the policies of the Government in making duty-free import and on great pressure, accepting to levy five per cent only while the demand from the agricultural community and also the sugarcane industry of the country is to increase the duty from five per cent to 40 per cent, to save the domestic industry and the interests of the cane growers.

It is understood that the hon. Minister for Food and Consumer Affairs has sent a Report to the Ministry of Finance requesting for increasing the duty from five per cent to 40 per cent. Even then, the Minister of Finance has not come forward to accept the genuine demands of not only the growers but also, his colleague, the hon. Food Minister. On the other hand, I do not understand the reasons for it.

There are instances where we have brought it to the notice of the hon. Finance Minister for levying more duties on import of some spare parts to manufacture finished goods. When the Indian industrialists are prepared to import 10 per cent of the component and making 100 per cent product, the import duty is high, while the import of the total commodity comes to 100 per cent, the import duty is less. It is a great anomaly. While he could do it against the interest of the nation there, possible he wants the same thing here also. With the support of some vested interests, he wanted to import sugar, by not taking care of the interests of the farmers and the nation.

These irregular policies of import and export on various occasions are affecting the nation very badly. We can understand that we may not be good in the field of weapon-making; we may not be good in the field of manufacturing aeroplane; we may not be good in the field of making big computers, where profit margin is 1000 per cent. In the field of pharmaceuticals, and formulations of drugs, foreign countries are making 1000 per cent, 100 per cent profit, while the margin in these agro-based industries in our country is very less. We do not have good R&D facilities. The industry which is flourishing in this country should not be killed. Sugar industry is one such industry. It should not be left to the whims and fancies of one hon. Minister in the Cabinet while the other hon. Minister accepts and understands the reality.

Sir, I will give some statistics in this regard. The sugar industry has been repeatedly impressing upon the Government for the last one year that around 450 sugar mills in this country will become sick if the Government does not act on this and stop the import of sugar from other countries.

Sir, as you are aware, India is the largest producer of sugar and it is also the largest consumer. But it is unfortunate that we are importing sugar from Pakistan whose production is three million tonnes, whereas our production is almost 15.5 million tonnes. The sugar industry has given an assurance that, with proper policies of the Government, they can even go to the extent of exporting sugar to other countries and earn Rs.4,000 crore per year. Now, by importing about one million tonnes of sugar in the last one year, the country has lost Rs.1,200 crore of foreign exchange. Everyday, the Minister is speaking about the importance of foreign exchange, foreign exchange reserves and trade deficit. While he is making a hue and cry about earning foreign exchange, I do not understand what made him to make the country lose Rs.400 crore of foreign exchange in this regard, when there is no need for it. Are we short of progressive farmers in this country who can produce enough sugarcane and sugar in this country? We have got ample knowledge, experience and capacity to produce more. It is only because of the wrong policies of the Government that we are losing this production capacity and the farmers are getting affected.

Sir, in my own constituency where sugarcane is being produced, due to the unstable policies of the Government, the farmers are diverting from sugarcane to other crops. Now, if a large number of farmers were to change from sugarcane to other crops over a period of time, then the need for import of sugar will really come and we will be losing very heavily. Instead of that, if the Government were to go into the subject in detail, understand the problems and encourage the farmers of this country, we can produce sugarcane and sugar in abundance, not only to meet our requirements but also for exporting to other countries.

Sir, I wanted to bring to the notice of my hon. colleagues and also to the hon. Speaker as to how the policy of certain Ministers is affecting the nation. In this particular case, it is very commonly known that even his colleague also is not supported by the Finance Minister. So, I want the entire House to speak in one voice and prevent import of sugar into this country, when there is capacity to produce more sugarcane and sugar here.

The sugar manufacturers have said that the cost of production of sugar in this country, even with the existing irregular policies, is coming to Rs.12 per kilogram and even after levying 10 per cent to 15 per cent duty on the imported sugar, the price would be only Rs.14 per kilogram. It means that there would not be much saving or benefit to the consumers also in reducing the price. Then, what is the need for import of sugar at all?

Similarly, I understand that the total amount of tax that the Government is earning on sugar production is about Rs.2,000 crore. If the Government is interested, they can reduce the excise duty locally and prevent the drain on foreign exchange. Like this, we can find out several other measures to increase the production of not only sugar, but also of various other food items.

Sir, he is the Minister of State for Food and Consumer Affairs and recently we have seen that the prices of several other essential commodities going up in the country. Are we short of farmers who can produce all these things? Why are they not producing them? They are not doing so, because the minimum support price is much less, before they can go in for plantation. There will not be any incentive for the farmers to go for a particular crop and naturally they will not go for that crop. Then, the business community in the country, the exporters and importers, take advantage of the situation. They say that there is a terrible shortage of that item in the country, the prices will go up and then they will say that they have to import it. After importing, the prices will further come down and the farmers will still divert from that crop.

Suppose the Government were to decide the reasonable support price to the farmer. Every agro-product that is required for this nation and the people can be produced at a cheaper rate in this country as compared to the other countries. On many an occasion, we find that the farmer is getting very poor price. But when the product goes out of his hands into the hands of the commission agents or the traders, the price will shoot up. This anomaly has to be rectified by all of us. So, giving an increased price to the farmer will not affect the consumer. But this irregular policy of the Government for import and export or lack of minimum support price is affecting this industry. The hon. Minister has already supported this cause. More than the hon. Minister, I request the hon. Minister of Finance and the Prime Minister and also the entire House to realise how the nation is being affected by its wrong policy. All of us must unanimously support to prevent the sugar from other countries and pay a right price to the farmer - the cane-grower - and the sugar mill industry. Thank you very much.

MR. DEPUTY-SPEAKER: As per rules, two more hon. Members can ask questions. Now, Dr. Laxminarayan Pandey can ask one question.