Maharashtra sugar mills seek ₹500 per tonne support to meet FRP gap, clear dues
Cooperative sugar mills in Maharashtra are facing a financial crunch, with dues exceeding ₹8,000 crore and FRP pendency reaching ₹4,900 crore. Industry representatives say a gap between bank funding and FRP payments is straining finances, prompting demands for ₹500 per tonne government aid to support mills and clear pending dues.
Maharashtra is home to more than 100 cooperative sugar mills, and dues have crossed ₹8,000 crore, with the FRP pendency in the state alone reaching ₹4,900 crore, said the office-bearer from Maharashtra Cooperative Sugar Factories Federation.
“The FRP for sugarcane is ₹3,550 per tonne, and we get ₹2,440 per tonne from the banks. There is a gap of ₹1,160. The Sugar Commissioner’s office has said that the FRP pendency in the state has reached ₹4,900 crore. If we include the amount to be paid for harvesters and transport, the financial crunch has gone up to ₹8,000-9,000 crore,” he said.
He also cited initiatives announced by the governments of Punjab and Karnataka to support the cooperative sugar mills in their states.
“The Punjab government has announced an aid of ₹685 for sugarcane, and Karnataka has also granted support. The cooperative sugar industry in Maharashtra gave priority for payments to sugarcane farmers, but the other dues towards transport and harvesters are pending,” the official said.
Amid the ongoing global conflict, exports won’t help much, as they pose transport issues, he said, adding that the domestic rates here are good, so the priority is to sell in the domestic market.
The official said that the federation has sought help through the state corporation department and held meetings to discuss the issue.
“We have submitted some demands, including an aid of ₹500 per tonne of sugarcane to meet the FRP gap and clear dues, and formation of a committee comprising sugar and agriculture commissioners for smooth functioning of harvesters. The department has written to the chief minister seeking time to address the issues of the sugar mills,” he said.
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Source : Hindustan Times
