45 sugar mills in Maharashtra default on fair price payment of Rs 1,860 crore

Kolhapur: As many as 45 sugar mills in the state have a total fair and remunerative price (FRP) dues of Rs 1,860 crore to be paid to farmers within 15 days after harvesting, as the sugar cane crushing season nears its end.The state sugar commissioner's office has decided to be strict with sugar mills that failed to pay FRP dues. The FRP amount is fixed by Centre for sugar cane supplied by farmers, and it is mandatory under law for mills to pay the entire FRP amount within 15 days.
According to a recent report released by the sugar commissioner's office, two sugar factories each from the cooperative and private sectors, did not pay a single rupee to farmers, while 41 mills paid 100% of the FRP amount. There were 75 mills that paid 80% to 99% of the FRP. The total FRP dues with all mills in the state are around Rs 4,252 crore, including the defaulted amount by the 45 mills and the amount yet to be paid, where the mandatory 15-day period is yet to end.The 45 mills that have been slapped with Revenue Recovery Certificates have paid FRP between 0% and 60%. Sugar commissioner Sanjay Kolte issued the RRCs, which are a warning that if mills continued with the FRP dues, the sugar produced by the mills could be seized and sold through the collectors of the respective districts to pay the farmers back."The mills eventually pay the FRP to avoid such action. The respective millers have been asked to attend the hearings before the district collectors. Most of the mills that did not pay the FRP are from Solapur (11), followed by Ahilyanagar (9), Beed (5), Parbhani (3), Beed (3), Nashik (2), Pune (2), Kolhapur (2), and Chhatrapati Sambhajinagar (2); and one mill each from six other districts," said a senior official.A miller said the sugar industry is facing liquidity issues. "The prices in the domestic market as well as international markets have dipped, and the millers are not able to sell the sugar. Given such a situation, such an action should be avoided, and authorities should be lenient," said the miller on the condition of anonymity.