Agri Business

Sugar mills in Maharashtra uncertain about one-time FRP

Our Bureau Pune | Updated on November 19, 2020

For 2019-20, mills in the State have paid 99.76 per cent FRP with only ₹33.96 crore arrears   -  K_K_Mustafah

Farmers want sugar factories to pay the fair and remunerative price (FRP) at one go even as sugar mills have expressed incapability to do so. Following agitation by Swabhimani Shetkari Sanghatana, sugar mills in Kolhapur district have agreed to pay one-time FRP, but mills in other parts of the State have not responded to the demand.

Sugar mills have cited pending sugar stock, delay in government’s export policy announcement and export subsidy among other reasons for the inability to pay one-time FRP.

Mills have also questioned the lending policy of State Co-operative banks and warned that delay in providing help to mills will further delay in FRP payment.

For the crushing season, 2019-20 mills in Maharashtra have paid 99.76 per cent FRP with only ₹33.96 crore arrears. Last year, farmers’ organisations had launched severe agitation demanding FRP. Swabhimani Shetkari Sanghatana leader and former MP Raju Shetti said that mills will have to pay full FRP in one instalment to farmers. He warned that farmers will launch an agitation and stop crushing of mills who refuse to accept the demand.

FRP is the minimum price to be paid by sugar mills to the cane growers who provide cane to the mills. The Sugarcane (Control) Order, 1966, stipulates the payment of the cane price within 14 days of supply, failing which interest at the rate of 15 per cent per annum on the amount due for the delayed period beyond 14 days is payable.

Published on November 19, 2020

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