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As of February 15, sugar mills in Maharashtra have cleared 87.07 p.c of their complete dues when it comes to fee to farmers for sugarcane bought. Of the 199 mills who’re operational for the 2024-25 season, 65 mills have cleared one hundred pc of their fee dues.
Mills who had been to pay a complete of Rs 21, 225 crore because the honest and remunerative value (FRP) to growers for cane bought have until February 15 paid Rs 18, 481 crore. (That is inclusive of the Harvesting and Transportation fees that are deducted by mills from the ultimate FRP). Thus, the precise arrears which mills must pay to farmers is Rs 2,744 crore. Because the season is about to finish, it’s anticipated of mills to hurry up their fee to farmers.
42 mills have paid under 60 p.c of their dues, whereas 39 mills have cleared between 60-80 p.c of their dues. 53 mills must clear 80 to 99.99 p.c of their fee to farmers. Sugar mills as per the Sugarcane Management Order of 1966, must clear their FRP fee inside 14 days of farmers promoting their cane.
Failure to pay can entice a penalty within the type of income restoration orders (RRC) issued by the sugar commissioner. Within the final two years, no restoration orders have been issued in Maharashtra.
Maharashtra’s sugar season is winding down, with 44 mills ending their season as of February 24.
The state has seen mills crushing 781.82 lakh tonnes of cane and producing 72.86 lakh tonnes of sugar. Nearly all 33 mills in Solapur division (Solapur and Dharashiv districts) have ended their season together with these in Marathwada area. Even mills in Kolhapur and Sangli, that are thought-about the sugar bowl districts of the state have ended their season.
What was alleged to be a bumper season has turned out to be a humid squib with decrease than anticipated per acre yields being reported throughout the state. Lack of a protracted dry winter and extra rain in the direction of the expansion part has resulted in decrease yields for Maharashtra.