Over Rs 3,400 crore in cane arrears, but many state sugar mills avoid action
Many mills have taken the clause offered in the Sugarcane Control Order, 1966, to sign agreements with their farmers which gives them the option to pay the complete Fair and Remunerative Price for cane purchased in installments.
Of the 187 state mills in operation, 96 have already got their farmers to sign such agreements. (Representational) Mid-way into the 2021-22 sugarcane crushing season, mills in Maharashtra have reported nearly Rs 3,400 crore in cane arrears they owe to farmers.
Many mills have taken the clause offered in the Sugarcane Control Order, 1966, to sign agreements with their farmers which gives them the option to pay the complete Fair and Remunerative Price for cane purchased in installments.
Of the 187 state mills in operation, 96 have already got their farmers to sign such agreements.
If mills are unable to pay the FRP within 14 days of sale of cane, they can face action from the authorities. However, in case the mills have such agreements in place, such action can be stalled. So, 96 mills have already got their farmers to sign agreements, wherein they accept 70-80 per cent of the payment within 14 days and the remaining amount is to be paid in two installments, one after the end of the season and one before the start of the next season.
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