Chhatrapati Sambhajinagar, March 9 Cooperative sugar mills in Maharashtra have appealed to the state government to provide a financial assistance of Rs 500 per tonne, so that they can bridge the gap between the Fair and Remunerative Price (FRP) and clear the outstanding dues of workers, an official said on Monday.
Maharashtra is home to over 100 cooperative sugar mills, and outstanding dues have exceeded Rs 8,000 crore, with the FRP pendency in the state alone reaching Rs 4,900 crore, said a representative from the Maharashtra Cooperative Sugar Factories Federation.
"The FRP for sugarcane is Rs 3,550 per tonne, and we receive Rs 2,440 per tonne from banks. This creates a gap of Rs 1,160. The Sugar Commissioner's office has stated that the FRP pendency in the state has reached Rs 4,900 crore. If we include the payments for harvesters and transport, the financial crisis has reached 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 a financial assistance of Rs 685 (per tonne) for sugarcane, and Karnataka has also provided support. The cooperative sugar industry in Maharashtra has prioritized payments to sugarcane farmers, but the outstanding dues towards transport and harvesters remain pending," the official said.
Amid the ongoing global conflict, exports will not be much helpful, as they pose logistical challenges, he added, emphasizing that the domestic rates here are favorable, so the priority is to sell in the domestic market.
The official said that the federation has sought assistance through the state corporation department and has held meetings to discuss the issue.
"We have submitted some demands, including financial assistance of Rs 500 per tonne of sugarcane to bridge the FRP gap and clear outstanding dues, as well as the formation of a committee comprising Sugar and Agriculture Commissioners to ensure the smooth functioning of harvesters. The department has written to the Chief Minister requesting time to address the issues faced by the sugar mills," he said.
