INDIA: The Sugar Commissioner, Maharashtra, has issued the Revenue Recovery Certificate (RRC) to eight cooperative sugar factories for their failure to pay the Fair and Remunerative Price (FRP) of sugarcane to the farmers whose sugar cane was purchased in the crushing season 2022–23.
The FRP is the minimum rate at which sugarcane has to be purchased by sugar factories from farmers. It is usually per quintal decided by the Cabinet Committee on Economic Affairs based on recommendations of the Commission for Agricultural Costs and Prices (CACP) of the Union Government.
The factories that have been issued RRC include Shri Makai Bhilarwadi Sahakari Sakhar Karkhana (SSK) Ltd., Karmala, Solapur, Sahakar Shiromani Vasantrao Kale SSK Ltd., Pandharpur, Solapur, Vithal SSK Limited, Pandharpur, Solapur, Tokai SSK Ltd., Kurunda, Hingoli, Saikrupa Sugar and Allied Industries Limited, Hindgaon, Ahmednagar, Rajgadh SSK, Anant Nagar, Bhor, Pune, and Nagai Devi Sugar Private Limited, Shahada, Nandurbar.
In the 2022–2023 sugar cane crushing season, 1052 lakh MT of cane was crushed by 210 factories, leading to the production of 1052.77 lakh MT of sugar.
Out of Rs 33278 crore (including harvesting and transportation charges) in FRP due to the farmers, an amount of Rs 32979 crore was paid, and the balance remains unpaid. The factories are supposed to pay the FRP to farmers within 14 days after the procurement of the sugarcane.
As per the report dated May 3 by Shekhar Gaikwad, Commissioner of Sugar, Maharashtra State, Pune, only 101 factories paid 100 FRP, while other factories did not pay the full FRP. 80 factories paid 80 to 99.99% FRP, 19 factories paid 60 to 79.99% FRP, and 10 factories paid 0 to 59.99% FRP. Thus, the FRP is due from 109 factories. Totally, Rs 1417 crore in FRP is in arrears from different factories for the last two seasons.
The arrears began mounting after the then-MVA government allowed the payment of FRP in two installments. Then the present Shinde-Fadnavis government scrapped that decision and made it clear in November that the factories would have to make the one-time payment of the FRP.
According to Swabhimani Shetkari Sanghatana leader Raju Shetty, basically, allowing the FRP payment in two installments is wrong.
Although this decision has been stated to have been cancelled, no notification has been issued. Besides, no committee to regulate sugarcane prices has been set up by the Maharashtra government as yet.
Also Read: Mumbai Police Rescues Two Uzbek Women from Flesh Trade
