Defaulter sugar mills in Maharashtra will not be allowed to crush sugarcane in this season
Shekhar Gaikwad, the Sugar Commissioner of Maharashtra, clarified that sugar mills that have not paid FRP to farmers will not be allowed to begin the sugarcane crushing season. The decision could have an impact on overall sugarcane crushing in the state.
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Gaikwad stated at a meeting held in Mumbai organized by State Cooperative Minister Balasaheb Patil, ‘Permissions to start sugar mills will not be granted until the FRP amount is cleared. This has a positive impact because sugarcane producers are being paid. More mills are preparing to pay FRP in the coming days.’
Fair and remunerative price (FRP)
Fair and Remunerative Price (FRP) is the minimum price at which sugar cane is to be purchased by crushing mills. The FRP is based on the gudance and recommendation of the Commission of Agricultural Costs & Prices (CACP). This approval ensures a guaranteed price for sugar cane growing farmers.
Sugar mills, according to Minister Patil, must publicly announce the price they will pay sugarcane farmers so that farmers are not misled or duped.
According to Sugar Commissioner Office data, as of October 15, 2021, approximately 36 mills must pay ₹244.81 crores in pending FRP to farmers, and the Commissioner Office has already issued RRC (Revenue Recovery Certificates) notices to 33 mills. The total amount of FRP pending is approximately ₹321.41 crores.
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