1. Commodity News

Maharashtra Sugar Mills Have Paid 94% FRP to Sugarcane Farmers This Crushing Season

Tooba Maher
Tooba Maher

Maharashtra sugar mills by the end of this crushing season have paid 94 per cent Fair and Remunerative Price (FRP) to sugarcane farmers. As per industry experts, it is the first time that farmers have received almost all the payment without any delay. Of the total payable FRP of ₹23,000 crore, mills have paid about ₹21, 604 crore to more than 20 lakh cane growers in the State of Maharashtra.

Though, Maharashtra has credited its policies, like soft loans, farmers believed that agitations by Swabhmani Shetkari Sanghatana has built immense pressure on mills ahead of Lok Sabha elections to pay timely FRP. In the state, 195 sugar mills crushed 952 lakh tonne sugarcane to produce 107 lakh tonne of sugar, with 11.26 per cent extract. It is considered as a record figure, seeing the severe drought in the State.

As per the Sugar Commissioner Office, Revenue Recovery Certificate (RRC) notices have been issued to the 73 mills that have not paid FRP to farmers. FRP dues worth ₹1,436 crore will be recovered by seizing properties of these mills. The Sugarcane (Control) Order, 1966 stipulates payment of the cane price within 14 days of supply.

It must be noted that majority of the mills in the State are owned or controlled by politicians across party lines. Traditionally, the Congress and the Nationalist Congress Party (NCP) have dominated the sugar sector, although BJP and Shiv Sena leaders joined the league in recent times.

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