Agriculture Industry

Maharashtra mills pay 92 per cent of sugarcane FRP to farmers19 units issued show-cause notice for pending dues to growers

07 May 2021, New Delhi, IN: Data published by the Sugar Commissioner of Maharashtra on Wednesday show that by April 30, sugar mills in the State have paid a net fair and remunerative price (FRP) of ₹20,599.73 crore, i.e., 92.40 per cent of the total payable FRP of ₹22,293.34 crore.

Last year mills had paid FRP of ₹12,036.62 crore during the same period. Out of 190 sugar mills that started operations this season, 102 sugar mills have paid 100 per cent FRP while 88 mills have partly paid FRP to farmers.

The Sugar Commissioner has issued slapped Revenue Recovery Certificate (RRC) notices to 19 sugar mills. Interestingly, no sugar mill was got such a notice last year during the same month.

The Sugarcane (Control) Order, 1966, has mandated payment of the cane price within 14 days of supply by farmers. If mills fail to make payment in the stipulated time, they have to pay 15 per cent per annum interest on the dues is payable.

The Sugar Commissioner office data shows that sugar mills in the State have crushed 1009.4 lakh MT sugarcane to produce 1059.24 lakh quintal sugar. 

Out of 190 sugar mills, 175 have stopped crushing operations. 

According to ISMA, most of the operating mills in the State are expected to close in the next 15–20 days.

The farmers’ organisations have demanded that the mills immediately pay FRP arrears of ₹1,693.61 crore, whichis about 8 per cent of the total payable FRP. 

Under the FRP system, the farmers are not required to wait till the end of the season or for any announcement of the profits by sugar mills or the government.