28 sugar mills face action for non-payment of dues worth Rs 545 crore

Sugar mills are legally bound to pay their farmers the FRP as per the Sugarcane Control Order of 1960, within 14 days of cane delivery. In case the payment is not cleared within 14 days, mills face action from the sugar commissioner. The sugar commissioner then recovers the same as due in revenue and issues Revenue Recovery Certificates (RRC) against the mills. Ample time is given to the mills to clear their dues failing which the RRCs are issued. Once the RRC is issued, the revenue officials confiscate the sugar stock with the mill, auction them in the open market and recover the dues. The dues are paid directly to the farmers.

The 28 mills which have so far faced action are spread across Solapur, Dharashiv, Buldhana, Yavatma. Solapur has reported the highest number of mills are in Solapur (14) followed by Ahilyanagar (4) while the rest are from Satara, Pune, Yavatmal, Buldhana etc. Most of the mills are privately owned, with a handful being in the cooperative sector. Sugar prices have been in a comfortable zone for most of the sugar season but the mills have failed to clear their dues even still.

Data shared by the sugar commissioner’s office shows that 146 sugar mills have cleared all their dues with some of the mills especially in Western Maharashtra paying more than 100 per cent of their dues. Ex mill sugar prices – the price at which mills sell their sugar has been around Rs 3,900-3,910/quintal most the sugar season. Of the 10 lakh tonnes of sugar which was allowed to be exported, around 8 lakh tonnes have been exported. Mills have decided to sell their shares in the domestic markets rather than export their quota due to the price advantage.