Maharashtra Sugar Factory: Sugar season is bitter; Rs 8000 crore of FRP stuck with factories
Maharashtra’s sugar season is nearing its end with severe financial distress. Out of 200 factories, 132 have failed to pay FRP, leaving farmers unpaid by ₹8,000 crore. Sugarcane crushing fell short by 246 lakh tonnes, and production is expected at 85 lakh tonnes. Rising costs and price stagnation have worsened the crisis, prompting urgent government intervention.
Gurubal Mali, Kolhapur: This year’s sugar season in the state is going to end in a few days. The financial condition of the factories is currently very bad. As many as 132 factories out of 200 did not pay FRP this year, they did not get about eight thousand crores of their dues. Due to this, the farmers are upset, which has increased the bitterness of the season. 200 factories started in the state this season. The chimneys of 140 of them have been closed. Due to sugarcane shortage, they did not continue for even a hundred days. The season will end in the next few days. It was estimated that 1073 lakh tonnes would be crushed this year; but in reality, 827 lakh tonnes of sugarcane has been crushed. That is, as much as 246 lakh tonnes less has been crushed. The possibility of producing 95 lakh tonnes of sugar has diminished; sugar production is likely to be around 85 lakh tonnes. Due to weather and heavy rains, along with production, the yield also decreased by 0.70 percent. The center did not increase the price of sugar even after five years. Limits were imposed on ethanol production. There was a 34 percent increase in the cost of harvesting and transportation. Due to this, the production cost has increased. As a result of all this, the financial calculations of the factories have deteriorated. Two years ago, only two; while last year, 37 factories had farmers’ FRP outstanding. This year, however, as many as 132 factories have not paid it. They have an arrears of more than eight thousand crores. The factories are not in a financial position to pay it at present. Against this backdrop, the farmers are in despair as the chances of getting it have decreased. All the factories have requested the Cooperation Minister to hold an early meeting and take a decision on the aid.
This has worsened the economy ■ Reduced sugar production, reduced extraction ■ No increase in sugar price ■ Big increase in harvesting and transportation costs ■ Limit on ethanol production All the factories are going to meet the Cooperation Minister to restructure the loans of the factories and increase the price of sugar to ensure the survival of the sugar industry. This meeting will be held soon. –
Vijay Autade, Sugar Analyst
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Source : MSN
