With the 2020-21 crushing season coming to an finish, sugarcane growers in Maharashtra are awaiting cane funds value over Rs 3,300 crore from mills. The sugar commissioner has not taken motion towards many of the mills as they’ve tied up with the producers for half cost of the unique truthful and remunerative value (FRP) and in addition shunned paying curiosity on delayed cost.
For the present season, mills in Maharashtra have procured 1,012 lakh tonnes of sugarcane, for which they paid Rs 25,204.28 crore to farmers on the primary FRP charge of Rs 2,850 per tonne for 10 per cent restoration. Till May 31, mills have paid Rs 23,319.84 crore, of which Rs 3,134.38 crore is excellent. The sugar commissioner has taken motion towards 29 mills which didn’t clear their dues on time.
For the previous few seasons, mills within the state have entered into agreements with their farmers, which permit them to pay the FRP in instalments. So, the primary installment, which is 70-75 per cent of the FRP, is paid on the 14th day of sugarcane distribution and the remaining in two equal installments earlier than the beginning of the following season in October. The mills declare that this method was the norm within the state, however by no means acquired on paper.
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Over the previous few seasons, mills have formally signed these contacts with their farmers to keep away from the authorized compensation of paying curiosity for late funds. Of the 190 mills which have taken up the season this season, 97 have signed such contracts.
On account of such contracts, on the finish of the season, the overall FRP payable is Rs 23,320.47 crore, of which mills have paid Rs 22,070.27 crore and the excellent on paper stands at Rs 1,277.44 crore. Payment of curiosity on the steadiness stays a authorized grey space, with mills arguing they’re protected by the agreements, a declare rejected by farmers.
Experts say that the agreements and the cost in installments of the unique FRP have put farmers at an obstacle in view of the authorized provisions hooked up to it.
Former MP and farmer chief Raju Shetty had challenged the very primary premise of the agreements. “For an agreement to be valid, it must be done in front of a witness – in no case has this happened,” he stated on Thursday. The settlement clause was inserted within the sugarcane registration slips, which farmers signal earlier than the beginning of the season. Shetty stated he needed to problem the legality of this association earlier than the Sugar Commissioner’s workplace.
Dhanaji Chudamunge, founding father of Andolan Ankush, a Kolhapur-based organisation, additionally questioned the commissioner’s silence on non-payment of curiosity on the steadiness quantity. “As per the sugarcane control order, interest of 15 per cent should be paid on any late payment, but mills are silent about it. There should be clarity about this,” he stated.
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With inputs from TheIndianEXPRESS
