Journalism of Courage
SUGAR mills in Maharashtra have accelerated their payment and for the fortnight ending on January 31, they have cleared dues of Rs 3,297.48 crore to the farmers. Maharashtra’s cane arrears that had crossed the Rs 5,300 crore mark by-mid January have come come down to Rs 4,841.15 crore by the end of the month.
Along with Uttar Pradesh, sugar mills in Maharashtra have defaulted in payment of the mandated Fair and Remunerative Price (FRP) since the start of the season. Figures from the Maharashtra Sugar Commissionerate show that mills, by January 15, were to pay farmers Rs 10,487.43 crore as the mandated FRP calculated at the average rate of Rs 2,450 per quintal. However, farmers had received Rs 5,166.98 crore with mills reporting arrears of Rs 5,320.35 crore.
On their part, the mills have blamed the prevailing prices of sugar, which they claimed were not conducive for the payment of the full FRP. Mills in the higher recovery areas of Sangli and Kolhapur had pointed out how the present ex-mill price of Rs 2,900 per quintal was not enough to pay the average FRP of Rs 2,850 per tonne in their region.
“Based on the finances available with us, it was decided that the payment will be at the rate of Rs 2,300 – 80 per cent of the FRP – as the first installment. The remaining amount would be paid once the season closes,” a senior private miller from Kolhapur said.
The formula was not acceptable to the farmers, who under the banner of the Swabhimani Shetkari Sanghatana had staged a series of protest in the region. Field offices of sugar mills were torched and transportation of cane was suspended between January 10 and 13.
Following talks with mills, the agitation was withdrawn but Sanghatana president MP Raju Shetti led a rally of more than 5,000 farmers to the office of the sugar commissioner in Pune on January 28. Shetti, who represents the Hatkanagale Lok Sabha constituency in Kolhapur district, had started an indefinite sit-in before the office demanding action against errant mills.
Sugar Commissioner Shekar Gaikwad had subsequently issued orders for attachment of properties of 39 mills, many of which had not paid a single rupee to the growers to recover the dues. Also, notices for hearing were issued against 59 other mills. Following the action, mills have accelerated the process of payment with dues worth Rs 3,297.48 crore being cleared within the last few days.
By January 31, mills that were to pay a total of Rs 13,305.62 crore have paid Rs 8,464.47 core -bringing down the dues to Rs 4,841.15 crore.
Meanwhile, the decision of the commissioner to take action against them have not gone down well with the mills. Mills, both cooperative and private, are set to meet in Pune on Monday to air grievance before Gaikwad. Some of the mills have also threatened to suspend crushing operations, if the commissioner continues with his actions.
