Maharashtra: 15 mills start crushing operations, but sugar bowl waits for higher cane price

Mills in Maharashtra are expected to crush around 580 lakh tonnes (lt) and produce 58 lt of sugar this season. Till date, 132 crushing licences have been issued, with 31 more licenses to be issued in the days to come, said officials of the sugar commissionerate.

Most of the mills in the sugar bowl districts of Kolhapur and Sangli are, however, yet to start their operations, as a final decision on cane pricing is yet to be arrived here.

Farmers’ union Swabhimani Shetkari Sanghtana has asked for Rs 200 plus the government-declared fair and remunerative price (FRP) as the first installment payment for cane procured by the mills from farmers. To protest the current price and demand a higher cane price, Sanghtana members had even started stopping vehicles carrying harvested cane.

Millers in the sugar bowl districts have ruled out any chance of accepting this demand, citing low sugar prices and large unsold stocks. The owner of a cooperative mill in Kolhapur said even paying the full FRP would be a challenge for them. “There is no question of paying anything over the FRP,” said the miller.

Given their poor financial health, almost 50 mills in the state will not be able to get a loan from banks this season, said Madhavrao Ghatge, chairman and managing director of Kolhapur-based Shri Gurudatt Sugar Limited.

As of November 15, mills in Maharashtra have cleared around 99.04 per cent of their cane dues. Mills had to pay Rs 23,435 crore for cane procured from farmers and have paid Rs 23,249 crore till now. Nearly 50 mills are yet to clear their dues, but are expected to clear the same within the next 15 days.