Maharashtra: Mills prepare recovery reports for sugar commissioner’s office

As the Fair and Remunerative Price is directly linked to recovery, calculating it in time is important for all stake holders. The state government had allowed the first payment to be done taking in consideration 10 per cent base recovery, while the final payment would be done once final recovery is fixed within 15 days of the end of season.

For mills which had produced ethanol from B-heavy molasses or directly from cane juice, VSI was given the work of certifying the final recovery after taking in account the diversion of cane for other products. Farmers were supposed to get their payment within 15 days of the season ending.

Given the complex nature of the calculation, most mills couldn’t meet the 15-day deadline and final payment to farmers is still pending. Officers in the sugar commissionerate said given this season was the first time such payments were made, intensive training both at the level of mills as well as the commissioner’s was undertaken. Several mills had failed to provide the required data, which has delayed the calculation and thus payment to farmers.

Of the 103 mills, 79 have provided the final certificate by VSI while others are working towards finalising their recovery reports. Ten mills have been pulled up for not providing the necessary data. Officers said that they hope by the end of July, the final calculations would be done and farmers’ payment would be cleared.

Till June 30, the state has reported 94.55 per cent payment of FRP (calculated at 10 per cent recovery) to farmers. Of the 200 mills which had crushed cane, 63 have paid 100 per cent of their dues. This season, five mills have faced action for failure to pay FRP on time.