The Maharashtra sugar commissioner has slapped notices on 68 sugar mills that have failed to pay a Fair and Remunerative Price (FRP) to farmers. These sugar mills owe ₹1,320 crore in FRP to cane farmers.
The Sugarcane (Control) Order, 1966, stipulates 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.
Sugar Commissioner Shekhar Gaikwad had recently issued notices to 54 mills, and now, another 14 mills have been added to the list. The Commissioner’s office warned the mills that if they fail to respond to the notices, the government would seize their properties and sugar stocks to recover dues and pay them to farmers.
Swabhimani Shetkari Sanghatana leader and MP Raju Shetti said that his organisation was planning to launch an agitation against district administrations for not initiating actions against the defaulting mills. Shetti said that it was the responsibility of the district administration to implement the orders and take action against sugar mills.
Sugar mills have been saying that excess sugar production and depressed domestic sugar prices have led to accumulation of cane price arrears.
Sugar production in India last sugar season (2017-18) was about 322 lakh tonnes, which is the highest production so far in the country.
Sugar production in the current sugar season (2018-19) is estimated to be about 315 LT, which is almost on the same level as the previous season.