Maharashtra mills pay 86% FRP to farmers

Sugar mills in Maharashtra have paid 86 per cent Fair and Remunerative Price (FRP) to sugarcane farmers. Out of 187 mills that started crushing season 74 sugar mills have paid 100 per cent FRP.

According to the data released by the State Sugar Commissioner office, mills had to pay ₹16,275 crore to farmers by February end of which ₹13,917 crore have been paid. FRP arrears are of ₹2,367 crore. There are 39 mills in the State which paid less than 60 per cent of the payable FRP.

The FRP is based on the cost of production of sugarcane and an element of assured profit as to cover the risk of sugarcane farmers. According to the Indian Sugar Mill Association (ISMA), the mark up above the cost of production of sugarcane, at an all-India average basis is as high as 100 per cent over the cost of producing sugarcane.

The Sugar Commissioner has not slapped Revenue Recovery Certificate (RRC) notices to any sugar mills. 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.