Maharashtra : Sugar sector seeks state aid to clear Rs 5,500 crore FRP dues
Maharashtra sugar leaders met under Cooperation Minister Babasaheb Patil to address ₹5,500 crore in pending FRP dues. Proposals to Devendra Fadnavis include a ₹500/tonne subsidy, ₹15,000 crore loan restructuring, and continued power subsidies to ease mill stress and clear farmer payments.
Indapur: A high-level meeting chaired by Maharashtra Cooperation Minister Babasaheb Patil has discussed a detailed proposal be sent to Chief Minister Devendra Fadnavis to address the financial stress in the state’s sugar sector, including payment of nearly Rs 5,500 crore in pending Fair and Remunerative Price (FRP) dues to sugarcane farmers, Pune Prime News reported.
The state-level meeting, held in Mumbai on Wednesday (March 4), reviewed the difficulties faced by sugar factories and discussed possible solutions. Briefing reporters after the meeting, Harshvardhan Patil, President of the National Federation of Cooperative Sugar Factories, said it was decided to forward the demands to the Chief Minister and request a meeting next week under his chairmanship.
Among the key proposals discussed was a request for the state government to provide a subsidy of Rs 500 per tonne, on the lines of measures adopted in some other states, to help factories clear FRP arrears of around Rs 5,500 crore owed to cane growers.
The meeting also proposed restructuring nearly Rs 15,000 crore in loans taken by sugar factories over a period of 10 years. Under the suggested plan, half of the interest burden would be borne by the factories and the remaining half by the state government.
Participants further demanded that the recent increase in water charges imposed by the Water Resources Department on sugar factories be withdrawn immediately. They also called for continuation of the Rs 1.50 per unit subsidy for electricity supplied to the state power utility from co-generation projects run by sugar mills.
Concerns regarding issues faced by factories from the Pollution Control Board were also raised. It was suggested that a senior-level meeting be convened to resolve these matters.
According to Patil, all the proposals discussed at the meeting will be formally submitted to Chief Minister Fadnavis through the Cooperation Minister. A separate request will be made to hold a detailed discussion next week in Mumbai under the Chief Minister’s leadership.
The meeting was attended by Water Resources Minister Radhakrishna Vikhe Patil, along with other senior leaders, the Sugar Commissioner and top officials.
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Source : Chinimandi
