Maharashtra sugar mills seek Rs 500 per tonne support to meet FRP gap, clear dues

Chhatrapati Sambhajinagar, Mar 9 (PTI) Cooperative sugar mills in Maharashtra have urged the state government to provide an aid of Rs 500 per tonne so that they can meet the gap in the Fair and Remunerative Price (FRP) and clear the pending dues of workers, an official said on Monday.

Maharashtra is home to more than 100 cooperative sugar mills, and dues have crossed Rs 8,000 crore, with the FRP pendency in the state alone reaching Rs 4,900 crore, said the office-bearer from Maharashtra Cooperative Sugar Factories Federation.

"The FRP for sugarcane is Rs 3,550 per tonne, and we get Rs 2,440 per tonne from the banks. There is a gap of Rs 1,160. The Sugar Commissioner's office has said that the FRP pendency in the state has reached Rs 4,900 crore. If we include the amount to be paid for harvesters and transport, the financial crunch has gone up to Rs 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 Rs 685 (per tonne) 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 Rs 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. PTI AW ARU