Maharashtra: Sugar season closes, but mills yet to finish paying farmers
As of February 15, sugar mills in Maharashtra have cleared 87.07% of their total dues to farmers. Of 199 operational mills, 65 have fully paid their dues, while 42 mills have paid below 60%. Mills owe Rs 2,744 crore in pending payments. The season is ending with lower-than-expected yields due to excessive rainfall and a short dry winter.
As of February 15, sugar mills in Maharashtra have cleared 87.07 percent of their total dues in terms of payment to farmers for sugarcane purchased. Of the 199 mills who are operational for the 2024-25 season, 65 mills have cleared 100 percent of their payment dues.
Mills who were to pay a total of Rs 21, 225 crore as the fair and remunerative price (FRP) to growers for cane purchased have till February 15 paid Rs 18, 481 crore. (This is inclusive of the Harvesting and Transportation charges which are deducted by mills from the final FRP). Thus, the actual arrears which mills have to pay to farmers is Rs 2,744 crore. As the season is about to end, it is expected of mills to speed up their payment to farmers.
42 mills have paid below 60 percent of their dues, while 39 mills have cleared between 60-80 percent of their dues. 53 mills have to clear 80 to 99.99 percent of their payment to farmers. Sugar mills as per the Sugarcane Control Order of 1966, have to clear their FRP payment within 14 days of farmers selling their cane.
Failure to pay can attract a penalty in the form of revenue recovery orders (RRC) issued by the sugar commissioner. In the last two years, no recovery orders have been issued in Maharashtra.
Maharashtra’s sugar season is winding down, with 44 mills ending their season as of February 24.
The state has seen mills crushing 781.82 lakh tonnes of cane and producing 72.86 lakh tonnes of sugar. Almost all 33 mills in Solapur division (Solapur and Dharashiv districts) have ended their season along with those in Marathwada region. Even mills in Kolhapur and Sangli, which are considered the sugar bowl districts of the state have ended their season.
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Source : The Indian Express
