Sugar mills in Maharashtra pay 82% of the remunerative price

Farmer payments totaling 82% of the fair and remunerative price (FRP) have been made by the 189 sugar mills currently processing sugarcane through September 2023. By December 19, these mills had crushed 236.69 lakh tonnes (lt) of sugarcane, according to information provided by the Maharashtra Sugar Commissioner office, and they still owed FRP of $7,407.20 crore. The farmers have received 6,075.23 crores of this.

Among the operating mills, 69 mills have paid 100% FRP, while 21 mills have paid FRP between 80% and 99%. The FRP dues from 120 factories have not yet been paid. There are mills that show FRP dues, according to Sugar Commissioner Shekhar Gaikwad in a letter to the Chief Director (Sugar), Ministry of Consumer Affairs, Food, and Public Distribution.

However, the majority of these mills have been sold in accordance with the Insolvency and Bankruptcy Code 2016 and the Securitization and Reconstruction of Financial Assets and Enforcement Act of Security Interest Act, 2002. Gaikwad continued, “In such circumstances, a FRP dues get erased.

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