Maharashtra continues crackdown on sugar mills over FRP

By: |
Pune | Published: May 6, 2016 5:15:17 AM

Even as Maharashtra's sugar season is slated to end on May 10, the government continues to maintain pressure on millers for fair and remunerative price (FRP) payments.

Even as Maharashtra’s sugar season is slated to end on May 10, the government continues to maintain pressure on millers for fair and remunerative price (FRP) payments.

Around 740 lakh tonne of cane has been crushed so far, resulting in production of 84 lakh tonne of sugar, top officials of the Maharashtra Sugar Commissionerate said. The commissionerate has initiated stern action against 20 mills for their failure to make FRP payments for the season.

“At the latest hearing, Revenue Recovery Certificate (RRC) orders have been issued against 6 mills. Besides, crushing licences of 6 mills have been cancelled and licences of another 8 mills have been suspended. Of the 8 mills, four mills have made payments,” Vipin Sharma, state sugar commissioner, told FE.

The total fine for crushing without licence comes up to R116 crore, Sharma said. Hearings were held for some 32 factories last week. As per the latest arrears report, around 84% of the FRP payments have been recovered while 14% millers still owe payments to farmers.

The government has also taken action against 23 factories for not making FRP dues of 2014-15. RRCs have been issued against 16 mills, crushing licences of 7 mills have been cancelled and fines have been imposed on them while cases of 4 factories are in the high court, Sharma said. These mills owe farmers some Rs 195 crore. Sharma said that he could not do much since these are RRC cases and their properties have been attached.

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