Maharashtra mills pay 86% FRP to farmers

Sugar mills in Maharashtra have compensated 86 for each cent Honest and Remunerative Price (FRP) to sugarcane farmers. Out of 187 mills that started out crushing period 74 sugar mills have compensated 100 for each cent FRP.

According to the knowledge introduced by the Point out Sugar Commissioner place of work, mills experienced to fork out ₹16,275 crore to farmers by February end of which ₹13,917 crore have been compensated. FRP arrears are of ₹2,367 crore. There are 39 mills in the Point out which compensated significantly less than sixty for each cent of the payable FRP.

The FRP is dependent on the price tag of creation of sugarcane and an element of confident profit as to go over the threat of sugarcane farmers. According to the Indian Sugar Mill Affiliation (ISMA), the mark up over the price tag of creation of sugarcane, at an all-India average basis is as superior as 100 for each cent in excess of the price tag of generating sugarcane.

The Sugar Commissioner has not slapped Profits Recovery Certificate (RRC) notices to any sugar mills. The Sugarcane (Manage) Order, 1966 has mandated payment of the cane price within fourteen times of supply by farmers. If mills are unsuccessful to make payment in the stipulated time, they have to fork out fifteen for each cent for each annum interest on the dues is payable.